Exports are now key for China’s automakers as domestic demand starts shrinking

China’s automakers are going global – a necessity, now that domestic demand has stopped growing.

Monthly figures show that retail vehicle sales fell into year-on-year contraction as of October, with the entire wholesale channel following suit. Profit margins and domestic sale prices have fallen, while capacity utilization remains well below its peak. Chinese buyers are increasingly opting for the used-car market.

Meanwhile, export growth keeps storming ahead. Electric-vehicle leaders such as BYD are taking an increasing share. Combined exports of hybrid and pure battery vehicles recently surpassed China’s exports of combustion engines.