As overseas expansion transitions from "optional" to "imperative," Chinese automakers are proactively adjusting their global strategies to navigate increasingly complex external conditions.
Overseas markets have become crucial growth drivers. On October 29, Byd Company Limited debuted its Japan-tailored K-EVBYDRACCO at the rebranded Japan Mobility Show (formerly Tokyo Motor Show), simultaneously introducing a dual-strategy approach featuring both pure-electric and hybrid models. This included Japan's first plug-in hybrid model, the Seal 06 DM-i, marking an expansion of Byd Company Limited's product lineup in Japan. Since entering Japan's passenger vehicle market in July 2022, Byd Company Limited has launched multiple popular EV models including the Yuan PLUS, Dolphin, Seal, and Seal 07, with plans to introduce 7-8 pure-electric and hybrid models by 2027. The company has established 66 sales outlets in Japan, steadily expanding its distribution network.
Data shows Byd Company Limited's cumulative EV sales in Japan reached 2,899 units from January to September 2023, a 66% year-on-year increase, entering Japan's top 10 imported brands for the first time. September registrations exceeded 800 units, indicating the brand's transition from early adopters to mainstream consumers.
China's automotive exports, having surpassed Japan to become the world's largest in 2023, continue their strong growth trajectory. According to China Association of Automobile Manufacturers, exports reached 4.95 million units in the first nine months of 2024, up 14.8% year-on-year. New energy vehicle exports nearly doubled to 1.758 million units (89.1% growth), accounting for 35.5% of total exports.
Among automakers, Byd Company Limited emerged as one of the fastest-growing exporters with 705,000 units shipped (133.3% growth), ranking second overall. Chery led with 936,000 exports (18.9% share), while BAIC Group, Chery, and Changan all achieved double-digit growth among top 10 exporters.
However, challenges abound. Escalating trade barriers present immediate obstacles, with the EU imposing additional tariffs on Chinese EVs, the U.S. maintaining 25% duties on auto imports, and Russia canceling tax incentives. Industry estimates suggest these tariffs erode over 15% of profit margins in Western markets.
Technical barriers pose greater challenges, including the EU's new Battery Regulation requiring full lifecycle responsibility and the impending Carbon Border Adjustment Mechanism (CBAM) that may add 3,000-5,000 yuan per EV from 2026. "Tariffs are visible waves, while technical barriers are hidden reefs," noted Gu Minchong from SAMR's Development Research Center, observing these standards expanding from product performance to environmental, safety, and social responsibility requirements across entire supply chains.
Intellectual property and data compliance present additional hurdles. Nearly 50% of Chinese automakers' overseas patents filed via PCT haven't entered target countries, with only 47% being active patents, according to CATARC's 2025 Overseas IP Protection Report. Strict EU GDPR requirements for local data storage could add 20-30 million yuan in compliance costs per market.
Localization shortcomings also hinder growth. Service network deficiencies have caused issues in Europe, where JD Power data shows after-sales service contributes 35% to brand loyalty in mature markets—far exceeding product performance factors.
In response, Chinese automakers are building global ecosystems through deep localization. Byd Company Limited's Japan-specific K-Car development exemplifies this approach. "We'll continue investing heavily in Japan, enriching our product matrix and service system," said Liu Xueliang, head of Byd Company Limited's Asia-Pacific sales.
Beyond Japan, Byd Company Limited now operates across 117 countries, transitioning to "full industrial chain collaboration and ecosystem embedding." Other major players like Great Wall Motors have evolved from simple exports to comprehensive "ecological globalization" encompassing R&D, production, supply chains, sales, and service. SAIC, Changan, GAC, and Chery are all establishing overseas production bases and regional R&D centers to develop "global standards with local characteristics" products.
Industry experts emphasize three strategic priorities: deep localization to overcome trade barriers, new energy technology leadership, and omnichannel service innovation. "Chinese automakers must learn from domestic appliance exporters' experience in policy adaptation while leveraging supply chain synergies and cost advantages," suggested Cui Dongshu from CPCA.
As Chinese automakers shift from simple exports to localized operations, their global ambitions face both unprecedented opportunities and multifaceted challenges in this new phase of international expansion.