• China-based OEMs are experiencing significant growth overseas, with their sales outside of China doubling compared to H1 2023.
• Europe, Southeast Asia and Latin America are emerging as key destinations for Chinese OEMs.
• China overtook Japan in 2023 to become the world’s largest car exporter.
• This rapid expansion of Chinese OEMs could slow down in some markets due to the growing protectionist geopolitical policies.

The rise of electric smart cars has showcased Chinese OEMs’ technological and supply chain strengths, positioning them at the forefront of the ongoing automotive transition. With rising competition in the Chinese market, the country’s new-age electric vehicle (EV) players like NIO, Xpeng and Aiways, along with traditional OEMs such as SAIC, Changan Automobile and BYD, are gradually expanding abroad. As a result, the contribution of Chinese OEMs in the overall passenger vehicle (PV) market outside of China reached 5% in H1 2024. China had already surpassed Japan in 2023 to become the world’s largest car exporter. According to Counterpoint Research’s latest Global Automotive Model Sales Tracker, Chinese OEMs achieved sales share of 6.8%, 8.7% and 15.4% in Europe, Southeast Asia (SEA) and Latin America (LATAM) respectively in H1 2024.

Their early entry into the EV market has given Chinese OEMs a significant edge, making them an increasing threat to global players. In response, European and US governments have implemented tariffs on Chinese vehicle imports to protect their domestic automakers and supply chain ecosystems and curb perceived predatory practices. The intensified trade tensions between the West and China have in turn pushed Chinese OEMs to explore alternative markets like Southeast Asia (SEA), Latin America (LATAM) and the Middle East and Africa (MEA), which not only have lower geopolitical risks but also are emerging markets, expected to grow significantly by the end of the decade.

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