China's automobile exports reached 7.098 million units in 2025, a 21.1% year-on-year increase, marking the third consecutive year as the world's largest exporter. In 2026, exports continued to surge, with monthly volumes exceeding one million units in June and July, and full-year projections of 11.5 to 12 million units. However, the rosy industry-wide figures mask a widening gap between automakers, according to a report by Chinese business outlet Huxiu.
Overseas markets have become a critical profit driver for some Chinese carmakers, but not all are reaping the benefits. For BYD, Geely, Chery, and SAIC—the top four in net profit for the first half of 2026—overseas sales also rank among the highest, underscoring a direct link between global expansion and profitability. In contrast, companies like GAC and Beijing Automotive, despite active overseas efforts, still posted losses as their international profits could not offset domestic losses.
Profit Divide Widens
The share of overseas revenue in total income has risen sharply. For BYD, GWM, and Chery, overseas revenue accounted for about 30% of total in 2023, but by the first half of 2026, that figure had climbed above 50%, with Chery nearing 70%. This shift has transformed export from a supplementary sales channel into a core profit source. BYD's overseas business gross margin reached 21.71% in the first half of this year, compared to 15.67% domestically. Geely's second-quarter exports surged 188.02% year-on-year, with CFO Dai Yong noting that export gross margins were about 10 percentage points higher than domestic.
Leapmotor, the only profitable new-energy startup, sold 96,000 units overseas in the first half, accounting for 26.9% of its total sales, through its joint venture with Stellantis. However, GWM saw its overseas sales exceed domestic for the first time, with overseas revenue share at 55.13%, yet net profit attributable to shareholders plunged 61.11% to 2.465 billion yuan (about $347 million). Changan's overseas revenue share rose from around 20% to over 30%, but net profit also fell sharply. Both companies are trapped in a cycle of selling more overseas while earning less, attributed to GWM's heavy reliance on Russia, where tax policy changes eroded margins, and Changan's forex and inventory issues.
Costs and Strategies
Exporting cars involves multiple cost layers: manufacturing, shipping (€1,500-3,000 per vehicle to Europe), import tariffs (EU's 10% base plus countervailing duties of 17% for BYD, 18.8% for Geely, 35.3% for SAIC), and local distribution costs (8-15% of retail price for channels, plus 10-20% for other operations). A car retailing at €38,000 yields only €3,000-4,000 in gross profit per unit, before R&D amortization, according to Huxiu.
To mitigate risks, automakers are adopting varied strategies. Chery has built a global R&D network with one headquarters and seven regional centers. BYD is localizing production in Thailand, Brazil, and Turkey to avoid tariffs. Geely pursues a light-asset approach, partnering with regional players like Proton and Renault, sharing technology and supply chains. The report concludes that success in overseas markets requires not just volume but the ability to adapt to local rules and build profitable operations.
