China Exported 1.04 Million Cars in July, Taking Over From Japan as the World's Top Auto Exporter

China exported 1.043 million vehicles in July, up 0.6 percent from June and 81.3 percent from a year earlier, according to data released by the China Association of Automobile Manufacturers on August 12, marking a second consecutive month above the million mark.

NEV exports reached 553,000 units, up 5.7 percent month on month and 150 percent year on year, making up more than half of total exports for two straight months. Over the first seven months of 2026, China exported 6.14 million vehicles, up 66.8 percent, including 2.909 million NEVs, up 120 percent.

The monthly cadence shows exports holding above 900,000 in April and May, crossing one million for the first time in June and staying there in July, while CAAM has projected full-year exports of 7.4 to 8 million units.

Another milestone arrived in the same release, as NEVs took more than 60 percent of new car sales for the first time in July and crossed 50 percent of cumulative sales.

The shifting balance with Japan is the more symbolic part, since China first overtook Japan as the world's largest vehicle exporter in 2023 and shipped more than 7 million vehicles in 2025 to stay on top.

Chinese automakers sold nearly 27 million vehicles globally in 2025, surpassing Japanese brands at roughly 25 million for the first time and rewriting an industry order in place since 2000, according to Nikkei counts.

Behind the export surge, however, China's home market remains under pressure, with July domestic sales falling 23.6 percent year on year to 1.541 million units and domestic combustion car sales plunging 45.7 percent, making exports a key hedge against weak domestic demand.

Chinese brands also still trail on after-sales networks, brand recognition and localized operations overseas, and trade barriers such as EU tariffs keep stacking up, so whether export volumes can keep climbing at this pace remains an open question.