Chinese EV exports surge as domestic market slows

Chinese electric vehicle makers are doubling down on export markets like Canada as their domestic market matures and profit margins shrink at home.

First-quarter EV exports from China more than doubled in 2026 compared with 2025, according to data from the International Energy Agency. At the same time, domestic sales of New Energy Vehicles—an umbrella term for all types of electric cars—declined by roughly 25 per cent in the same period.

China's domestic EV market, which makes up more than half of all new vehicle sales there, is facing intense competition. Consumer demand is slowing while government subsidies and trade-in incentives shrink. Automakers are cutting into each other's margins trying to win buyers with the latest technology and pricing.

"The market had 'grown addicted … to significant domestic sales growth' over a 17-year period," said Bill Russo, former Chrysler executive and founder of Shanghai-based advisory firm Automobility Ltd. "So there is no choice but to look to other markets in order to expand."

Chinese-made EVs are heading globally, with the majority going to Russia, Brazil, and the United Arab Emirates in early 2026. Growth in Southeast Asia hit 130 per cent, the Middle East 60 per cent, and Latin America 55 per cent. Europe saw 940,000 Chinese-made electric cars sold last year, up about 50 per cent from the previous year. The U.S. continues blocking Chinese EVs with a 100 per cent tariff.