China is attempting to export more of its state-of-the-art automotive technology, from robotaxis to flying cars. This approach reflects both its aspirations for globalization and its harsh economic reality.
The largest and most sophisticated automobile market in the world is located in the second-biggest economy. However, a protracted pricing war has left the nation with an excess of automobiles, including mass-produced electric vehicles made by unidentified Western businesses.
China’s car sales fell by 18% in the first quarter from a year earlier and are expected to remain flat or down for the foreseeable future.
Foreign markets offer the promise of higher margins and meaningful growth in sales volume, analysts and industry watchers say. That means the outlook for global growth will be a focus for China’s annual auto show that starts on Friday in Beijing.
CHINESE EXPORTS HAVE ALREADY GROWN
According to industry data, China’s exports significantly increased last year, with 5.8 million cars exported; this represents an approximately 20% increase compared to the previous year.
According to a forecast published on Thursday by the China Association of Automobile Manufacturers, total vehicle exports from China, including cars and commercial vehicles, are expected to increase by 4% this year, reaching 7.4 million.
Pedro Pacheco, an analyst at the research firm Gartner, said about Chinese car manufacturers, “They’ve reached a point where they realize it’s no longer just about China.”
“Additionally, they need a roadmap to spread technology in Europe, Latin America, and Southeast Asia.” “Additionally, they need a roadmap to spread technology in Europe, Latin America, and Southeast Asia.”
Supported by technology giant Huawei, the Chinese electric vehicle brand Aito is among those aiming for overseas expansion. Aito Chairman John Zhang told Reuters that the company aims to more than double its annual sales to 1 million vehicles by 2030.
Zhang said that Aito, a brand under the Chongqing-based car manufacturer Seres Group, expects to generate 20% of its total sales volume, which is currently below 1%, from overseas sales.
The company plans to enter some Northern European markets where electric vehicle usage is higher this year.
COMPETITIVE IN SPITE OF EUROPEAN TARIFFS
Currently, the United States is practically closed to Chinese cars.
Chinese electric vehicles are also subject to tariffs in Europe, but they can still be competitive there; making the European market a key point for Chinese electric vehicle manufacturers.
Analysts claim that cars manufactured in China increasingly meet the needs of foreign drivers.
“China is not an emerging country in the automotive industry.” “At the highest level, it is one of the best countries,” François Roudier, Secretary General of the International Organization of Motor Vehicle Manufacturers (OICA), a global industrial organization, told Reuters in Beijing.
Surveys indicate that American consumers are also showing increasing interest in Chinese vehicles, but the barriers to sales in the United States include tariffs of nearly 100%.
Earlier this month, three Democratic senators urged President Donald Trump to prohibit Chinese automakers from producing vehicles in the United States and to block the entry of cars manufactured in China and assembled in Mexico or Canada.
In January, Trump stated that he was open to Chinese car manufacturers producing vehicles in the United States.
He is expected to meet with Chinese President Xi Jinping at a summit next month. The United States Trade Representative, Jamieson Greer, stated earlier this month that economic and trade relations with China are stable and that Trump will strive to keep them that way.
‘FLYING CARS’ AND HUMANOID ROBOTS
EV maker Xpeng (9868.HK), expects to start large-scale production of its “flying” cars next year and of its humanoid robots in the fourth quarter of 2026, President Brian Gu told Reuters on Thursday.
Xpeng has received more than 7,000 orders for its flying cars, able to fly as well as to be driven on roads. Most of the orders are for China, where the company is working on obtaining approval from the country’s aviation authorities.
It also plans to start robotaxi tests in the southern city of Guangzhou this year, Gu said, adding that 2027 will be a “critical year” for “tests around the world with partners.”
Last year, Xpeng generated around 15% of its revenue from overseas sales. In the next five to 10 years, “more than 50% of the revenue should come from outside of China,” Gu said.
