China’s electric-vehicle makers are going global to avoid going under.
A price war at home and shrinking government support have thrown the industry into flux, with analysts predicting only 15 of the country’s 129 EV brands will remain profitable by 2030. China this year halved a purchase tax exemption for EVs, imposing a 5% levy on buyers for the first time.
The fallout is spreading beyond China’s borders, reshaping auto industries from Bangkok to Dubai to Sao Paulo. China exported 3.43 million EVs last year, almost three-quarters more than in 2024, according to the China Passenger Car Association.
“The pressure to deliver both at home and abroad has never been higher,” Lei Xing, a U.S.-based China auto industry consultant, told Rest of World.
More than 400 EV brands have collapsed since 2018, according to industry tracker EVBoosters. These include HiPhi, which halted production in 2024 when debt overwhelmed its assets, and WM Motor, once backed by Baidu, which went under in 2023.
“Competition in 2026 will be even more brutal and bloody,” XPeng CEO He Xiaopeng warned late last year. The founder of competing startup NioNioFounded in 2014, Nio is a Chinese EV maker known for its battery-swapping technology.READ MORE, William Li, struck a similar tone in a memo to staff, calling 2026 the “final battle.”
Neta Auto’s parent company filed for bankruptcy last year after failing to pay wages, stranding customers in Thailand without after-sales support. Singulato, Aiways, Byton, and Levdeo have all shut down. Only three Chinese EV startups met their delivery targets last year, according to automotive publication Chejiahao.
The pressure to deliver both at home and abroad has never been higher.”
BYDBYDBYD Auto is a Chinese carmaker that became the world’s leading EV manufacturer in 2023, competing with Tesla for market share and global attention.READ MORE, now the world’s biggest EV seller after overtaking Tesla, aims to export 1.3 million vehicles this year, up 25% from last year. Geely is targeting overseas sales growth of more than 50%.
Chinese carmakers invested more in foreign supply chains than domestic for the first time in 2025, according to U.S. think tank Rhodium Group. The shift signals a long-term bet on markets abroad.
The biggest destinations are those with “open and friendly” policies, Yichao Zhang, an automotive partner at AlixPartners, told Rest of World.
In Thailand, Chinese brands have jumped from single-digit market share four years ago to almost a fifth of passenger car sales, eating into Japanese dominance.
Indonesia entered China’s top 10 export markets for the first time after the government mandated EVs be built locally to qualify for tax breaks. Mexico and the United Arab Emirates were China’s fastest-growing EV export markets last year, with Mexico selling about 221,000 vehicles and the UAE about 192,000.
In Latin America, Chinese carmakers have built factories in Brazil and Argentina, though BYD paused construction in Mexico after tariffs jumped to 50%. The trade situation elsewhere remains complicated.
The increase in models available is a good thing for the consumers.”
While the U.S. maintains 100% tariffs and a national security ban on most Chinese EVs, some barriers are falling. Canada last month cut tariffs from 100% to 6.1% for an annual quota of 49,000 vehicles.
The Canadian auto industry is already pushing back, with the American Automotive Policy Council and the Canadian Vehicle Manufacturers’ Association claiming the policy change would “undermine Canada’s auto sector” and “present risks” to the North American supply chain. explain a bit more. The European Union agreed to drop duties of as much as 35% on Chinese EVs in exchange for carmakers committing to sell above a minimum price floor, ensuring they do not undercut European rivals.
“The most important factor that determines the success of Chinese EV makers’ overseas business is geopolitics, including tariff, import-export regulations, and supply chain issues,” Zhang said.
Chinese EV makers will have to make cars where they sell them to win abroad, Felipe Munoz, founder of industry research platform Car Industry Analysis, told Rest of World. Governments worried about unfair competition from subsidized Chinese vehicles may yet tighten restrictions, he said. For consumers, though, it’s a win either way.
“The increase in models available is a good thing for the consumers,” Munoz said. “More competition usually means lower prices and better products.”
