China's Auto Exports Hit 8.205 Million Units in First Three Quarters of 2026; Thailand, Indonesia, and EU Adjust Auto and Battery-Related Rules

CAAM data shows that in the first three quarters of 2026, China's automobile exports reached 8.205 million units, up 65.8% year on year; of which new energy vehicle exports totaled 4.006 million units, up more than 130% year on year. A CAAM official said full-year exports are expected to exceed 10 million units. Thailand has tightened its localization accounting rules, excluding imported battery cells from local parts statistics, and approved a ratio requirement for imports to local production of 1:2 in 2026 and 1:3 in 2027, with subsidies and tax incentives clawed back if unmet; consumption tax is tiered by localization level, with fully imported vehicles that have no local production plans taxed at 35%. Indonesia requires the domestic content threshold for parts to rise to 60% from 2027 to 2029 and reach 80% in 2030, otherwise subsidies must be refunded and tariffs paid retroactively. In the EU market, Chinese automakers may commit to a minimum import price no lower than a set level in place of countervailing duties, but the 10% basic import tariff remains, and they must accept reviews of sales channels, cost structures and profit margins. Localized production in the EU must reach a 40% localization rate to be exempt from countervailing duties, a path already achieved by Leapmotor and Stellantis at their plant in Spain. The EU plans to implement a battery passport policy from February 2027, imposing digital requirements across five major dimensions including carbon footprint and recycled material content. Under the Japan-EU EPA, tariffs on Japanese cars exported from Japan to the EU have been reduced to zero, while the comprehensive tax rate on Chinese pure electric vehicles is as high as 45.3%. BYD has set up plants in Rayong, Thailand, and Szeged, Hungary; Xpeng is using Magna's capacity for contract manufacturing; and SAIC is scaling back its pure electric share and focusing on hybrid products.