China's Automotive Sector Is A One-Way Path With Soaring Exports And Plummeting Imports | Carscoops

      The export of new-energy vehicles from China surged by 43 percent in May.

      The country exported 2.83 million vehicles in the first five months of the year.

      Total vehicle exports rose by 20 percent year-over-year, reaching 682,000 units in May.

      While exports increased, imports saw a decline of 25 percent, totaling around 47,000 units last month.

      China's automotive sector is progressing, but not in the way many in the West anticipated. Although global exports are rising, the country is importing fewer vehicles than ever. This change reflects not only shifting market conditions but also the ongoing trade tensions with the United States, which have gained renewed attention with President Trump’s second term.

      Data from the China Automobile Dealers Association (CADA) indicates that vehicle imports into China fell by 25 percent to about 47,000 units in May. Year-to-date imports dropped by roughly 33 percent to 180,000. Despite Trump’s desire to see more American-made vehicles in China, this has not materialized.

      US Auto Imports to China Decline

      Light-vehicle imports from the US to China saw a significant drop last month, falling by 68 percent to just 3,130 units. This decline isn't isolated; over the first five months of the year, imports decreased by 48 percent to 18,849.

      A temporary détente between the two nations had provided some hope for stability. On May 12, China and the US agreed to a 90-day pause on increasing tariffs, but existing tariffs still have a considerable impact. In China, vehicles from the US with engines larger than 2.5 liters are subject to a 25 percent tariff, while those with smaller engines face a 15 percent rate.

      Barriers Affect Both Sides

      On the other hand, the US has also implemented stringent measures. Apart from tariffs, new regulations effectively ban all Chinese vehicle imports, citing national security reasons. These rules prohibit the “sale or import” of connected vehicle software from designated “countries of concern,” which includes China.

      The China Automobile Dealers Association has yet to provide detailed import figures by brand, but major importers include GM, Ford, and Tesla. BMW also ships numerous vehicles from the US to China.

      Japan is the leading exporter to China, sending 70,037 vehicles in the first five months of the year. It is followed by Germany with 41,675 vehicles and Slovakia with 25,833.

      Export Growth Continues

      While imports to China have diminished, auto exports are still on an upward trajectory. From January to May, China exported 2.83 million vehicles, reflecting a 16 percent increase year-over-year. May was particularly robust, with total vehicle exports reaching 682,000 units, a year-over-year increase of 20 percent. Notably, new-energy vehicles (including BEVs and PHEVs) are gaining substantial popularity.

      In May, China’s NEV exports amounted to 296,000 units, marking a 43 percent rise. The leading markets for these NEVs include Brazil with 35,478 units, Belgium with 30,405, the Philippines with 21,517, the UK with 21,456, Mexico with 14,587, and Australia, which imported 14,250 new NEVs from China in May.