China’s car exports beat last year’s record with four months to go

China exported 6.2 million passenger cars in the first eight months of 2025, exceeding its full-year forecast, with August alone delivering roughly 890 000 units—a 67.1% year-on-year rise. Domestic sales dropped 25.6% in August. Europe absorbed most of the surge, especially plug-in hybrids that avoid EU tariffs, giving Chinese brands a 28% share of the European PHEV market in H1. BYD’s Hungarian plant will start mass production this quarter, protecting the sector from forthcoming EU duties on Chinese plug-in hybrids.