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What Is Driving China’s Massive Car Export Growth

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China saw a sharp rise in passenger car exports in April even as domestic auto sales continued to weaken, according to data released by the China Association of Automobile Manufacturers.

The report said China exported nearly 796,000 passenger vehicles last month, marking an 85% jump from a year earlier. Exports of new energy vehicles, including electric cars and plug-in hybrids, surged more than 120% to roughly 420,000 units.

At the same time, China’s domestic passenger car sales fell 25.5% year-on-year to 1.3 million vehicles, extending a six-month decline. Analysts said weaker government subsidies for electric vehicles and concerns over China’s struggling property market have hurt consumer confidence.

Chinese automakers such as BYD and Geely Auto are expanding overseas, especially in Europe, Latin America, and Southeast Asia.

Analysts also expect higher global fuel prices linked to the Iran war to boost demand for EVs. Meanwhile, industry observers are watching upcoming trade talks between U.S. President Donald Trump and Chinese President Xi Jinping during Trump’s Beijing visit this week.

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