China's NEV Penetration Surpasses 60%—Global Expansion Emerges as Key to Breakthrough

In December 2025, the retail and wholesale penetration rates of new energy passenger vehicles in China reached 62.2% and 64.3%, respectively, officially ushering in the "60% era"—a milestone signaling the market’s shift from a high-growth blue ocean to a fiercely competitive red ocean. Facing intensifying domestic competition, automakers are increasingly turning their focus overseas. In 2025, China exported 7.098 million vehicles, including 2.615 million new energy vehicles (NEVs), doubling year-on-year. Exports hit a new record in January 2026, reaching 681,000 units, with NEV exports surging to 302,000 units—an increase of 100% year-over-year. Leading automakers such as Chery, BYD, and Geely are leading export volumes, while newer entrants like Leapmotor and XPeng are also expanding rapidly overseas. Chinese automakers are transitioning their international strategies from simple vehicle exports to establishing local production facilities. Currently, over 10 Chinese-owned vehicle plants are already operational abroad, with more than 50 additional plants in the pipeline, primarily targeting Europe and Southeast Asia. Industry experts emphasize that integrating into local industrial ecosystems and pursuing collaborative overseas expansion are key to achieving sustainable global success.