China’s automobile exports rose 21% in 2025, driven by a surge in shipments of electric vehicles and plug-in hybrids, as weakening demand at home pushed carmakers to accelerate their overseas expansion, an industry association said on Wednesday.

Exports of new energy vehicles, including battery-electric cars and plug-in hybrids, doubled from a year earlier to 2.6 million units, according to data from the China Association of Automobile Manufacturers (CAAM).

Total vehicle exports surpassed 7 million units, up 21% year-on-year, underscoring China’s growing role as a global supplier of automobiles, particularly in the fast-growing EV segment.

Chinese automakers are expected to continue increasing exports this year as they seek relief from an increasingly intense price war in the domestic market, where competition has squeezed margins and dampened sales growth.

Domestic demand showed further signs of weakness late in the year. Passenger car sales in China — the world’s largest auto market — fell 18% year-on-year in December, following a nearly 7% decline in November, CAAM said.

The sharp slowdown in local sales has reinforced automakers’ push into foreign markets, particularly in Europe, Southeast Asia, the Middle East and Latin America, where Chinese brands are gaining share through competitively priced electric and hybrid models.