China’s Vehicle Export Model Upgrades in 2025: Smarter, More Localized, More Strategic

China’s automotive export landscape is undergoing a transformation. What used to be primarily volume-driven exports is now evolving into more sophisticated, localized, and resilient models. These “upgrades” aim to handle trade barriers, align with local consumer needs, and improve profitability and sustainability. Below are the key upgrade paths, backed by recent, verifiable data and examples.

1. Export Volume Remains Strong, But Growth Is Slowing

• In 2024, China exported 6.41 million vehicles, up 23% year-on-year, generating about US$117.4 billion in revenue.

• In 2025, expected exports are forecasted at 5.8 to 6.2 million units, marking a deceleration compared to the sharp growth in 2024.

• New-energy vehicle (NEV) exports, particularly plug-in hybrids (PHEVs), have surged (e.g. +190% YoY in recent data), while purely electric vehicle (EV) exports have dropped somewhat—largely due to trade policies like EU tariffs.

What this means: Quantity is still important, but Chinese automakers are refining not just how many they export, but where, how, and in what product mix.

2. Strategic Local Production & “Glocalization”

To cope with tariffs, local regulations, and preferences, Chinese automakers are increasingly setting up production or assembly, local parts sourcing, and customizing vehicles for specific markets.

• Changan Automobile is planning a manufacturing facility in Europe to support its growing EV sales there. 

• SAIC-GM-Wuling (SGMW) has built a compact EV factory in Indonesia and is using it to serve Southeast Asian markets, achieving over 50% local market share in Indonesia. 

• Brands like Leapmotor have entered into joint ventures, such as the Leapmotor-Stellantis venture, which sells and potentially manufactures in Europe. 

Why this upgrade helps:

• Avoids or reduces import tariffs and trade friction.

• Shorter supply chains, lower logistics costs.

• Better adaptation to local tastes (features, design, climate, regulation).

• Improves speed to market and after-sales support.

3. Diversified Export Models & Energy Types

Given trade barriers (for example, EU tariffs on Chinese-made BEVs), many automakers are shifting export models:

• Expanding exports of hybrid and plug-in hybrid vehicles (PHEVs), which in many cases are not subject to the same tariffs as pure electric vehicles. 

• Using “used car export” or “zero-mile used” models in some markets, or export of previously registered but unused vehicles to circumnavigate certain import duties or accelerate volume.

4. Stronger Local Partnerships & Dealer Networks

Rather than simply exporting from China, Chinese automakers are enhancing their overseas presence via partnerships.

• Establishing local dealership and service networks is now a priority. For example, Changan aims to build over 1,000 dealerships across Europe. 

• Collaboration or joint ventures with local or international brands—for instance, Leapmotor’s partnership with Stellantis for its export and distribution outside China.

5. Adaptation to Regulatory & Policy Environments

Chinese automakers are actively adjusting to policy shifts abroad:

• Tariffs: Because the EU introduced tariffs on many BEVs from China in October 2024, many exporters are increasing their hybrid/PHEV mix to avoid or reduce the cost impact.

• Certifications & Standards: Local product certifications, safety regulations, alignment with EU regulations are becoming standard parts of export models. (While specific examples are less frequent in recent news snippets, this is a pervasive pressure in automotive industry across borders.)

6. Focusing on Emerging & Secondary Markets

Besides Europe, Chinese automakers are increasing exports to Latin America, Southeast Asia, Middle East, and Africa.

• In Argentina, BYD launched EVs under a tariff-free incentive scheme starting 2026, selling models priced under US$16,000 before taxes.

• Companies like SAIC Maxus are targeting dozens of new countries, adjusting products (e.g., cooling systems, suspension) to match local conditions.

7. Product Upgrades & Competitive Feature Sets

Exported vehicles are being upgraded in terms of features, design, and quality to better compete with established brands abroad:

• Better interior quality, safety features, and infotainment systems tailored for European or Middle Eastern customer expectations.

• Local climate adaptations (e.g. more robust cooling, heating systems) and modifications for driving regulations, road conditions, or customer usage. SAIC Maxus noted upgrading suspension for Latin America, cooling upgrades for the Middle East.

Implications for Exporters and Consumers