China's Car Exports Expected to Slow Down in 2025

KatadataOTO – China's car exports are expected to slow down this year. This prediction is due to electric vehicle shipments from the Bamboo Curtain country facing several obstacles.

China has actually become the world's largest vehicle exporter, surpassing Japan. This record is certainly interesting as several regions, particularly Europe and America, have imposed additional tariffs on electric cars from China.

However, the impact of this policy is expected to be more pronounced this year. This is because Russia, which has been welcoming Chinese products, plans to implement tighter regulations.

In fact, Russia, Mexico, and the United Arab Emirates were the top three markets for Chinese-made cars in the first 11 months of 2024. Meanwhile, exports to Thailand, Australia, and the United Kingdom have decreased.

Photo : 123RF

Although the number of vehicle exports is expected to decline, Chinese manufacturers remain aggressive in developing the market. One of them is BYD, which will build a factory in Hungary.

This way, the company can still sell vehicles without being subject to the significant additional tariffs.

“Additional tariffs in Europe will only limit the sales of Chinese electric cars in the short term. Because building facilities in the region will allow Chinese manufacturers to regain their market share,” said Charles Lester, an analyst from Rho Motion.

Indonesia Becomes a New Market for Chinese Manufacturers

Despite a decrease in export numbers, Indonesia has the potential to become a new market for Chinese manufacturers. This is evident from the increasing number of car manufacturers entering the country.

Most of these manufacturers are targeting the EV segment, which is currently receiving many incentives.  The strategy is considered quite effective, as from January to November 2024, wholesale sales of electric cars reached 37,649 units.

Photo : BYD

This number is supported by the presence of several new manufacturers like BYD, which still fully imports from China. They are even the largest contributor with 13,886 units.

This figure is expected to increase further this year, given that electric vehicle tax incentives are being provided again.