China has announced that starting from 1 January 2026, electric vehicle (EV) manufacturers will be required to obtain export permits.
The country’s Ministry of Commerce stated that this measure aims to foster the “healthy development” of the EV industry and aligns it with the existing regulations for other vehicle exports, including cars and motorbikes.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Bloomberg, the policy change comes amid a broader tightening of control over China’s auto market by Beijing, following intense price competition within the EV sector that has pressured manufacturers and raised official concerns about the sustainability of the industry.
As part of the regulatory adjustments, authorities have curbed the longstanding practice of “aggressive discounting” and directed carmakers to settle their dues with suppliers.
Despite trade frictions, especially with the European Union, which has levied tariffs to limit the influx of Chinese-made EVs, exports from China’s leading EV companies have remained strong, the report said.
Throughout the initial seven months of the year, exports have matched the previous year’s figure of $19bn, with Europe continuing as the primary recipient of these vehicles, it added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe implications of the new permit requirements for international automakers operating in China, such as Tesla, BMW, and Volkswagen, are not immediately clear.
These companies benefit from China’s cost-effective production and established EV supply chain for their exports.
BMW, which partners with Great Wall Motor to produce electric Mini Cooper and Aceman models for the European market, has indicated that it has always secured export licences as a foreign manufacturer and anticipates no constraints on its operations in China due to the upcoming policy.
According to the China Passenger Car Association, Tesla’s Shanghai facility, which manufactures the Model 3 and Model Y for both local and international markets, has seen a decrease in exports in the majority of the first eight months of the year.
Meanwhile, Volkswagen has revealed plans to broaden its export range from China to additional markets in Asia, South America, and the Middle East, and already exports the Cupra Tavascan electric SUV to Europe.
As per the forecast of China Passenger Car Association secretary general, Cui Dongshu, the country’s automotive sector is targeting surpassing annual sales of 40 million vehicles within five years.
