Author | Janson
Editor | Zhihao
For every 10 electric vehicles sold globally, 6 come from Chinese automakers; for every 4 electric vehicles produced globally, 3 are made in China.
Che Dong Xi news on May 25, the International Energy Agency recently released the 'Global EV Outlook 2026 (2026 Global Electric Vehicle Outlook)' report, analyzing the current development status of the global electric vehicle industry from an international organization's perspective.
▲ 2026 Global Electric Vehicle Outlook Report
The report shows that Chinese automakers supplied 60% of global electric vehicle sales in 2025; of the nearly 22 million electric vehicles produced globally, nearly 75% were completed in China. In other words, China is not only the world's largest electric vehicle consumption market but is also becoming the most important electric vehicle supply source.
More critically, exports are becoming a new variable in China's electric vehicle industry.
The report points out that China's electric vehicle production exceeded domestic demand in 2025, making exports an important incremental source. China's electric vehicle exports exceeded 2.5 million units that year, doubling year-on-year; entering the first quarter of 2026, despite domestic sales facing temporary pressure, China's electric vehicle exports doubled year-on-year again.
From the perspective of export destinations, Chinese electric vehicles are moving from a single market to a diversified market. After Europe, Southeast Asia, the Middle East, and Latin America are becoming new growth areas, with Southeast Asia growing by about 130% year-on-year, the Middle East by about 60%, and Latin America by about 55%.
This means Chinese electric vehicles going global is no longer a trial run by a few companies, but is becoming an important growth direction for the entire industry.
▲ Global Electric Vehicle Sales and Sales Share in Selected Regions from 2020-2025
Worth mentioning, China is not a member state of the International Energy Agency, but acts as an associate state, directly becoming the absolute protagonist in the report. The word "China" appears 486 times in this report, far higher than "Europe" (220 times), "United States" (204 times), "India" (92 times), and "Japan" (69 times).
Che Dong Xi carefully deconstructed this report. After interpreting it from the dimensions of market, policy, and outlook, it was found that China's status in the global electric vehicle field is very obvious, and the actions of China's new energy vehicle industry are also influencing the development of the global industry.
01.
From the World's Largest Demand Market
To the World's Largest Supply Source
The report from the International Energy Agency shows that in terms of production volume, sales volume, or export scale, China is one of the most important markets in the current global electric vehicle industry.
This change is first reflected at the level of complete vehicle supply.
The report shows that global electric vehicle production approached 22 million units in 2025, with nearly 75% produced in China. In other words, for every 4 electric vehicles produced globally, about 3 come from China's manufacturing system. Meanwhile, China's electric vehicle production has exceeded domestic demand, making exports an important incremental source.
▲ Electric Vehicle Production, Demand, and Net Trade in Major Markets
The report points out that China's electric vehicle exports exceeded 2.5 million units in 2025, doubling year-on-year; entering the first quarter of 2026, despite domestic sales facing temporary pressure, China's electric vehicle exports doubled year-on-year again.
This means exports are gradually becoming an important variable for complete vehicle enterprises to balance domestic fluctuations, expand profit space, and participate in global competition.
▲ Overseas Sales, Export Value, and Brand Distribution of Chinese-Made Electric Vehicles
Of course, the rapid growth of China's electric vehicle exports cannot be simply understood as a one-sided pull by overseas demand. More accurately, it is the result of the combined effect of domestic supply capacity, price competition, manufacturing scale, and global demand.
Intensified domestic market competition and pressure on profit margins have driven enterprises to actively seek overseas increments; while the advantages of Chinese automakers in model richness, cost control, and delivery capability have also improved their efficiency in entering overseas markets.
▲ Electric Vehicle Registrations and Penetration Rate by Major Countries/Regions
Currently, Chinese electric vehicles have formed a more systematic penetration in multiple emerging markets.
In markets outside Europe and the US, imported electric vehicles from China accounted for 55% of 2025 electric vehicle sales, whereas five years ago this proportion was less than 5%.
1. European Market: Still an Important Destination for Going Global
From the perspective of export destinations, Europe remains an important market for Chinese electric vehicles.
In 2025, China exported about 940,000 electric vehicles to Europe, a year-on-year increase of nearly 50%; but Europe's share in China's electric vehicle exports has dropped to about 40%. Meanwhile, the growth center is beginning to spread to more emerging markets.
▲ Proportion of Chinese Electric Vehicle Imports in Emerging Markets
2. Southeast Asian Market: Strong Influence of Chinese Brands
In 2025, Southeast Asian electric vehicle sales doubled year-on-year, exceeding 500,000 units for the year, with electric vehicles accounting for nearly 20% of new car sales.
Among them, Thailand, Indonesia, and Vietnam are the main growth markets; although the Vietnamese market is mainly driven by the local company VinFast, in countries like Thailand, Indonesia, Malaysia, and the Philippines, the influence of Chinese manufacturing and Chinese brands is very prominent.
In Thailand, electric vehicle sales reached about 140,000 units in 2025, accounting for nearly one-quarter of new car sales, and Chinese-made electric vehicles still accounted for about three-quarters of the local electric vehicle market; in Indonesia, 2025 electric vehicle sales doubled year-on-year, with about 75% coming from Chinese imports.
In Malaysia, Chinese imported electric vehicles once accounted for about 80% of the market; in the Philippines, Chinese imported models, especially those related to BYD, constitute an important part of local electric vehicle sales.
▲ Chinese Overseas Electric Vehicle Manufacturing Capacity and Southeast Asian Distribution
3. Latin American Market: Brazil and Mexico are the Mainstays
The Latin American market also shows a similar trend. In 2025, Latin American electric vehicle sales grew by 75%, with Brazil and Mexico contributing over 75% of the regional increment.
Among them, Brazil's 2025 electric vehicle sales reached 180,000 units, accounting for about 9% of new car sales, with nearly 85% from Chinese manufacturing; Mexico's 2025 electric vehicle sales tripled year-on-year, with Chinese imported models accounting for about 85% of local electric vehicle sales, higher than the about 60% in 2024.
▲ Electric Vehicle Sales Share in Emerging Markets by Place of Production
However, China's electric vehicle going global is not without challenges. As Chinese brands' market share overseas increases, some countries begin to raise localization requirements, adjust import tariffs, or promote the construction of local manufacturing capabilities.
The report also mentions that China's electric vehicle exports in 2026 may face uncertainties such as inventory backlog, export management, and tightening of overseas policies.
From a medium to long-term perspective, China's core position in the global electric vehicle industry will continue.
The report predicts that China will still be the world's largest electric vehicle producer in 2035, accounting for about 60% of global electric vehicle production; the export scale is expected to continue growing, continuing to be an important supply force for the global electric vehicle market.
▲ Outlook on China's Electric Vehicle Sales Share
From a long-term perspective, China will still be the most critical market, manufacturing base, and export center in the global electric vehicle industry chain.
02.
Automakers and Industry Chain All Join In
Competition Pushed Towards Overseas Markets
Chinese electric vehicles forming today's scale in the global market is not solely driven by a single enterprise, a single hit model, or a specific subsidy policy, but is the result of long-term accumulation of an industry system.
From the perspective of the industry chain, enough automakers participate, the industry chain is complete enough, product prices are competitive enough, and finally pushed to overseas markets by fierce competition.
First, China's electric vehicle industry developed fast enough, with enough participants. The IEA report shows that the Chinese market had nearly 700 available electric vehicle models in 2025, the only major car market where the number of electric vehicle models exceeds fuel vehicle models, with electric vehicle models outnumbering traditional models by about 60%.
This shows that the Chinese electric vehicle market is no longer a testing ground for a few brands, but a mature market where almost all mainstream automakers are deeply involved.
▲ Breakdown of Electric Vehicle Price Changes in China, Germany, and US
However, the premise of export growth is still that China possesses a sufficiently large domestic market as a basic board.
In 2025, China's electric vehicle sales exceeded 13 million units, accounting for about 60% of global sales; in new car sales in China, electric vehicles accounted for nearly 55%, becoming one of the mainstream categories of China's car market.
Traditional automakers, new force brands, new entrants with tech company backgrounds, and commercial vehicle enterprises are all launching products at different price bands and in segmented markets. The report also mentions that the Chinese market had over 1,100 models in 2025, with the number of electric vehicle models increasing by about 25% year-on-year, and large cars and SUVs accounting for over 60% of electric vehicle sales.
▲ Distribution of Model Price Intervals in Major Markets
The result of supply density is that the consumer choice space is quickly opened. Whether it's entry-level small cars, family SUVs, or plug-in hybrids, pure electric models, the Chinese market can provide a large number of choices. For automakers, this also means the speed of product iteration must accelerate, with configuration, price, channels, and brands all having to participate in competition.
Compared to markets like Europe and the US which still face issues of insufficient model choice and price intervals being relatively high, China's electric vehicle market entered the high-density competition stage earlier.
▲ Price Premium of Electric Vehicles vs. Fuel Vehicles in Emerging Markets
Second, China possesses a more complete electric vehicle industry chain, especially forming a global advantage in the battery link.
The report shows that in 2025, China's battery cell production accounted for over 80% of the global total, with an even higher proportion in key links such as cathode and anode materials; from cells and materials to complete vehicle integration and charging equipment, China has formed a highly localized and scaled supply system.
Batteries are one of the most expensive core components of electric vehicles. China's advantage in the battery industry directly determines the scope for reducing complete vehicle costs.
The report mentions that Chinese battery pack prices are about 30% lower than North America and about 35% lower than Europe; meanwhile, Lithium Iron Phosphate batteries are widely applied in China, further lowering the cost threshold for mainstream and entry-level models.
This industry chain integrity is not only reflected in "being able to make it", but more in "making it fast, lowering costs, and supplying enough".
▲ Public Charging Pile Quantity and Fast/Slow Charging Structure in China, Europe, and US
When battery costs decline, material supply is stable, and the parts system is mature, automakers can launch new models faster and can also transmit cost advantages to terminal prices faster.
Third, Chinese-made electric vehicles have formed a clear cost advantage and are starting to compete directly with fuel vehicles. The report shows that in 2025, about 70% of pure electric vehicles in China were sold at prices lower than same-class fuel vehicles; in the small car market, electric vehicles have basically replaced fuel vehicles.
Meanwhile, the average price of China's pure electric vehicles dropped by over 10% in 2025, with about 30% of pure electric model entry prices below $20,000 (approximately 136,400 RMB); in the SUV sub-market, pure electric SUVs achieved price parity with same-class fuel SUVs for the first time.
Finally, overly sufficient competition has also pushed Chinese automakers overseas. With more models, prices continuing to drop, and supply chain efficiency constantly improving, the scale advantage of China's electric vehicle industry has been brought about, but also brought profit margin pressure.
The report clearly mentions that fierce domestic competition and pressure on profit margins are one of the important reasons driving Chinese automakers to expand overseas sales; by 2025, China's electric vehicle production has exceeded domestic demand, with exports exceeding 2.5 million units, doubling year-on-year, and exports in the first quarter of 2026 doubling year-on-year again.
From the results, the overseas market is becoming a new direction for the release of China's electric vehicle industry capabilities.
▲ Outlook on Global Electric Vehicle Fleet
Therefore, Chinese electric vehicles going global is not simply "exporting because they can't sell domestically anymore", but the result of these capabilities overflowing to overseas markets after domestic high-intensity competition screens out cost, product, supply chain, and delivery capabilities.
The domestic market is responsible for "practicing capabilities", while the overseas market becomes a new growth space. The fundamental reason why Chinese electric vehicles can rapidly expand their presence in the global market is precisely that this industry system has formed a self-reinforcing closed loop.
03.
Conclusion: Chinese Automakers Going Global Continue to Accelerate
Entering 2026, China's new energy vehicle exports continue to accelerate. Data from the China Association of Automobile Manufacturers shows that from January to April 2026, China's new energy vehicles accumulated exports of 1.384 million units, a year-on-year increase of 1.2 times; during the same period, China's complete vehicles accumulated exports of 3.127 million units, a year-on-year increase of 61.5%.
At the automaker level, the overseas market has become an important increment for top domestic brands. From January to April 2026, Chery accumulated exports of 570,900 units, a year-on-year increase of 66.3%; BYD's overseas cumulative sales exceeded 450,000 units, and adjusted its full-year overseas target from 1.3 million units up to 1.5 million units.
Automakers such as Geely, Changan, and Great Wall also maintained growth in the overseas market, with Geely achieving 286,200 units in overseas sales from January to April, Changan 285,700 units, and Great Wall 180,600 units.
It is not difficult to see that the overseas market is becoming a new growth space for Chinese automakers, and Chinese automakers are also playing an increasingly important supply role in the global electric vehicle market.
