China Has Halted Its Electric Vehicle Export Surge | Carscoops

      The nation will mandate that electric vehicle (EV) manufacturers obtain export licenses to enhance quality and foster global customer confidence.

      Starting January 1, 2026, China will implement export controls on EVs. This decision aims to address price wars and encourage healthy growth in EV trade. Under the new regulations, mandatory customs inspections will be enforced.

      International buyers of Chinese electric vehicles may soon experience increased scrutiny regarding how these cars are exported. On Friday, Beijing announced its plan to implement export controls on pure electric passenger vehicles, which is a response to domestic concerns over heightened price competition and international complaints regarding an influx of inexpensive cars.

      The government is also seeking stricter regulations to ensure adequate after-sales support, meaning exporters will encounter heightened oversight in the forthcoming months and years.

      The new licensing requirements will take effect on January 1, 2026. From that date, the Ministry of Commerce has confirmed that automakers and other authorized entities must apply for export licenses, similar to the current system for hybrid and combustion-engine vehicles manufactured in China and sold internationally. Officials have expressed growing frustration with unauthorized exports that send cars abroad without the required after-sales services.

      Reports indicate that inadequate service and a lack of support networks can leave customers in difficult situations and damage a brand's reputation. This issue has also intensified price competition in numerous international markets, creating instability for local manufacturers.

      According to Wu Songquan, the director of policy research at the China Automotive Technology Research Center, it is crucial for Chinese car brands to align with established automakers by standardizing export procedures and improving quality. The goal is to build long-term trust in vehicles exported from China.

      The timing of these new regulations is deliberate, coinciding with China's emergence as the world's largest car exporter, even surpassing Japan. The nation's growth trajectory shows no signs of slowing, as reported by the South China Morning Post.

      Cui Dongshu, the secretary general of the China Passenger Car Association, predicts that within five years, the country could export up to 10 million vehicles annually to international markets. Locally, due to the large population, domestic brands could be selling 30 million vehicles each year.

      There remains substantial potential for market growth in China’s less developed regions, such as midwestern districts and rural areas, where car ownership could eventually exceed that of major cities like Beijing and Shanghai, according to Cui.

      Currently, China has approximately one car for every 1,000 individuals, highlighting the significant opportunity for expansion. This is in stark contrast to Europe, where there were 641 vehicles for every 1,000 people in 2020, and the United States, which has seen numbers as high as 860.