Cui Dongshu, secretary general of the China Passenger Car Association, noted that drawing on lessons from the home appliance industry's international expansion, Chinese automakers have developed increasingly clear and refined overseas strategies. Moving from KD assembly to localized production and cross-border acquisitions, their efforts have yielded notable results, propelling independent brands into a new phase of "fortifying strongholds while building guerrilla zones" — a rural-encircling-the-city strategy applied to global markets.
Independent brands typically start with KD assembly operations abroad, then steadily build up local supply chain capabilities. With vehicle manufacturers leading the charge and parts suppliers following in tandem, the coordinated push has proven highly effective, with SAIC Motor, Geely, Great Wall Motor, and Chery Automobile achieving major successes. Export models have largely shifted from buyout arrangements to dealership networks. Brands such as Byd Company Limited, Great Wall Motor, and Chery Automobile have established localized commercial management centers overseas, overseeing and enhancing the capabilities of local sales and service networks, steadily building stronger reputations in their target markets.
Cui pointed out that since 2021, the COVID-19 pandemic has highlighted the resilience of China's automotive supply chain, driving exceptional growth in vehicle exports over the past two years. Independent brands have shown particularly strong sales performance in select overseas regions. In 2025, Chinese independent brands sold 3.54 million vehicles in regions with consistent data collection, up 28% year-on-year. In July 2026, monthly sales reached 475,000 units, a 59% increase, while cumulative sales from January to July totaled 2.94 million units, up 62% — demonstrating robust retail performance in measurable markets.
In the first seven months of 2026, Chinese independent brands captured a 7.6% share of the global overseas market, up 1.9 percentage points year-on-year. However, sales vary greatly by region: 21% in the Southern Hemisphere, 12% in Europe, around 9% in Southeast Asia and the Middle East, and roughly 10% in mainstream areas. Entry into the U.S., Japan, and South Korea remains cautious. For new energy passenger vehicles, the overseas market share reached 24% in the January-July period of 2026, a jump of 9 percentage points compared to the same period in 2025.
Overseas Performance of Chinese Independent Brands
Monthly sales trends over recent years show a pattern of rising exports with a roller-coaster peak in summer followed by declines. Overseas retail data indicates a relatively stable monthly trajectory with strong recent growth, especially the sharp acceleration beginning in 2025, driving exceptionally high year-on-year increases in early 2026. June set a historical record, and July saw overseas sales of 475,200 units.
Regional characteristics remain pronounced. In 2025, independent brands sold 3.54 million vehicles in consistently tracked regions, up 28%; in July 2026 alone, sales hit 475,000 units, up 59%; and the January-July 2026 cumulative total reached 2.94 million units, up 62%, reflecting excellent retail outcomes in measurable markets.
Customs data shows explosive growth in Chinese vehicle exports, with overseas market statistics painting an equally strong picture. Market performance fluctuates by region — Southeast Asia, Africa, and the EU have shown strong retail results, while Russia-Central Asia, the U.S., and India have underperformed. The surge stems partly from past exports being concentrated in underdeveloped or hard-to-track markets; now, stronger performance in higher-end markets has made the data more visible. Since 2022, exports have entered a phase of explosive growth, with Europe experiencing three consecutive years of robust gains, a dip in 2024, and renewed strength in 2025-2026.
Chinese independent brands' overseas market share rose to 7.6% in January-July 2026, up 1.9 points year-on-year. Regional divergence is stark: 21% in the Southern Hemisphere, 12% in Europe, around 9% in Southeast Asia and the Middle East, and roughly 10% in mainstream markets. Entry into the U.S., Japan, and South Korea remains guarded. For new energy passenger vehicles, the overseas share climbed to 24%, up 9 points from 2025, driven by strong export performance even as the U.S. NEV market contracts. In South America, NEV share exceeds 79%, and in Southeast Asia, it reaches 45%.
In January-July 2026, Russia holds an outsized share of overseas sales, with Oceania and Africa exceeding 20%, Central/South America, the Middle East, and Southeast Asia around 15%, the EU at 8%, and Japan, South Korea, and the U.S. nearly zero. Chinese brands rank first in Russia, second in Oceania and Africa (behind Japanese brands), and third in the EU, Middle East, and Central/South America (behind local European automakers and Japanese brands). India and other nations retain their own auto industries, so global multipolarity remains intact.
In 2026, Chery Automobile, Geely, Byd Company Limited, SAIC Motor, and Great Wall Motor have significantly boosted their shares in Oceania and Southeast Asia, intensifying pressure on Toyota, Honda, and Suzuki in those regions.
Tracking Export Flows by Region
Central and South America: Chinese automakers have accelerated penetration since 2026, with cumulative tracked sales nearing 950,000 units in January-July, up sharply year-on-year. Key drivers include localized production by Byd Company Limited and others in Brazil and Mexico to bypass tariff barriers, the cost-performance appeal of NEV models with brands like Aion and Leapmotor growing over 200% annually, and recovering purchasing power from the commodity rebound. The shift is moving from "trade exports" to "ecosystem expansion." The market shows a "one superpower, multiple strong players" dynamic, with Byd Company Limited leading at a 30% share, followed by Geely, Wuling, and Chery Automobile. Traditional fuel vehicles face intense competition, and Brazil's IPI tax policy adjustments will be a key variable going forward.
European Union: In May 2026, Chinese brands' monthly new car registrations in Europe surpassed Japanese brands for the first time. Five major Chinese automakers sold a combined 138,400 units, up 64.6% year-on-year, capturing a 12.01% market share, while six major Japanese brands sold 130,400 units, down 3.13%. This is not a short-term blip but the result of structural divergence in the new energy race — nearly all Chinese growth comes from pure electric and plug-in hybrid models, leveraging complete battery and smart technology supply chains to amplify cost-performance and iteration speed advantages. The EU has become a core growth engine for Chinese automakers' overseas expansion, with first-half 2026 NEV sales growth largely driven by the region. As Europe accelerates electrification, Chinese companies are moving from vehicle exports to localized production and supply chain integration, entering a new phase of systematic operations.
Russia and Central Asia: This remains a key sales region, with Changan Automobile, Great Wall Motor, Chery Automobile, Geely, and Geely's Livan brand performing well. Chery Automobile and Changan Automobile have shown notable sales growth in Russia.
Southeast Asia: Despite recent underperformance in this long-standing focus area, Byd Company Limited, Chery Automobile, Changan Automobile, Geely, and Aion have performed strongly. In July, Geely and Changan Automobile posted significant local sales gains.
Middle East: This region serves as a base for Chinese brands, particularly in Iran where Chery Automobile and Haima have consistently done well. Recent geopolitical tensions in Iran have dampened sales for some, but Byd Company Limited is rapidly entering Middle Eastern markets, quickly closing the gap with Chery Automobile.
Oceania: The market remains welcoming, with Chinese brands performing strongly in Australia over the long term. Byd Company Limited currently stands out, while Chery Automobile has been overtaken by Great Wall Motor, reflecting vibrant dynamism in overseas operations.
Africa: A long-standing key sales region, with trade projects, engineering initiatives, and subsidies driving extensive Chinese automaker presence. Chery Automobile and Great Wall Motor have performed consistently well, while Byd Company Limited has seen rapid sales growth.
South Asia: Both exports and locally tracked sales remain limited, with SAIC Motor the primary player, particularly through SAIC-GM-Wuling's strong setup. This year, SAIC's passenger vehicle arm and Great Wall Motor have shown strength, while new entrants GAC Group and BAIC have also performed respectably.
Tracking Overseas Sales Dynamics
Independent brands' overseas sales concentrate in Global South markets and mid-tier developed nations that lack comprehensive manufacturing systems or low-cost production capabilities. In these environments, Byd Company Limited, Geely, and Great Wall Motor excel. Meanwhile, new energy vehicle sales abroad are surging — both pure electric and plug-in hybrid models are booming. Despite EU tariffs on Chinese EVs, plug-in hybrids and other segments are finding alternative pathways, with strong performance in the European market.
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