live Trump says U.S., Iran to continue talks as ceasefire ends
President Donald Trump said the U.S. and Iran had agreed to continue talks despite an escalation of hostilities this week but he declared that the cea...
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
Not long ago, buying a Chinese car felt like a risk. Quality was uncertain, brand names were unfamiliar and resale values were anyone's guess. That has all changed.
Today's Chinese cars come with electric motors, touchscreens the size of small televisions and price tags that are making European and Japanese carmakers increasingly nervous.
BYD and Chery are leading this transformation. They may not yet be household names everywhere, but they are gaining recognition far faster than many industry observers expected.
In May, Chery delivered 181,571 vehicles to customers outside China, an increase of 81 per cent compared with the same month a year earlier. Overseas buyers now account for 73 per cent of the company's total sales. A Chinese carmaker is now selling three vehicles abroad for every one sold at home. A decade ago, that would have seemed unimaginable. Today, it is simply another sales report.
BYD's rise has been equally remarkable. Three years ago, it barely registered in global export data. By April this year, it was shipping 134,500 vehicles a month to customers around the world, up nearly 71 per cent year-on-year and setting a new all-time record.
The company sold just over one million electric vehicles overseas in 2025, more than doubling its previous total, and has since set a target of 1.5 million for this year. BYD's chief executive has said rising oil prices will encourage even more consumers to switch to electric vehicles in 2026.
The scale of China's expansion is striking. The country shipped more than 400,000 electric vehicles overseas in April alone. During the first four months of 2026, total EV exports from China exceeded 1.4 million units, twice the volume recorded during the same period last year.
Across the whole of 2025, Chinese EV exports reached 2.5 million vehicles, also double the previous year's figure. Outside Europe and the U.S., more than half of all electric vehicles sold worldwide are now made in China.
Several factors are driving this growth. Consumers around the world are increasingly adopting electric vehicles. The International Energy Agency expects 23 million EVs to be sold globally this year, representing nearly one in every three new cars purchased.
Chinese manufacturers have also spent years refining vehicles that offer long driving ranges, fast charging and competitive technology at prices many Western rivals struggle to match. At the same time, the war in Iran has disrupted oil supplies and pushed fuel prices higher, encouraging more consumers to consider electric alternatives.
Azerbaijan offers a clear example of how this shift is playing out. It is not usually a focal point of global automotive industry coverage, but it illustrates the trend particularly well.
In 2024, Azerbaijani consumers purchased 15,471 Chinese hybrid and electric vehicles worth nearly 400 million dollars, more than three times the number sold a year earlier. Nearly eight out of every 10 electric vehicles sold in the country were Chinese-made.
BYD has gone beyond simply exporting vehicles. The company has invested 60 million dollars in a local factory to produce electric buses, created 600 jobs and set a goal of sourcing 40 per cent of components locally within the next few years.
Europe presents a more complex picture. Chinese-built vehicles now account for 22 per cent of all EV sales across the continent, up from 19 per cent last year. However, tariffs introduced to protect local manufacturers are increasingly encouraging Chinese brands to build vehicles in Europe rather than export them from China.
BYD has a factory operating in Hungary, while XPeng is assembling vehicles in Austria. Some European manufacturers are also beginning to consider partnerships with Chinese firms as they look to make use of underutilised production facilities.
The U.S. remains largely closed to Chinese carmakers, with tariffs and political opposition making significant market entry difficult for now.
Elsewhere, however, opportunities continue to expand. Across South America, Southeast Asia, Africa and the Middle East, consumers who once stretched their budgets to buy Japanese or Korean vehicles are increasingly finding that Chinese electric vehicles offer more features for less money.
Chinese electric cars are now parked on streets from Baku to Brussels, underlining how quickly the global automotive landscape is changing.
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