Export controls designed to lift the quality of vehicles leaving China will be introduced to improve the perception of low-cost EVs around the world, but the move could put an end to price wars at the cheapest end of the market.
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The Chinese government is set to tighten controls around electric vehicles that leave the country bound for export markets.
In a move similar to the conditions applied to hybrid and combustion-powered vehicles, the Chinese government will introduce conditional export approval measures from January 1, 2026.
China’s Ministry of Commerce has pushed for the export licensing scheme to create more stable growth and ensure trade relationships are not harmed by products that do not meet international expectations.
While Chinese vehicles exported to Australia are required to meet applicable local regulations, design rules, and safety standards, not all overseas markets require the same level of compliance.
The new export licensing measures would set minimum requirements for after-sales support and aims to stamp out the practice of third-party exporters shipping vehicles to international markets without manufacturer support.
The new regulations mean that only automobile manufacturers and their authorised companies will be granted the required export approval.
The Ministry of Commerce is taking a big-picture approach, with the goal of improving China’s reputation in emerging markets where low-cost vehicles are often rushed to market without proper support for owners and with little regard to the impact on existing domestic sales channels.
The director of policy research at the China Automotive Technology Research Center, Wu Songquan, provided a statement on the policy.
"Just as major international brands have earned global trust through high quality, Chinese automakers should establish standardised processes and achieve high-quality exports in their independent operations," Wu said.
The move comes as China’s export growth continues.
In 2023 China overtook Japan as the world’s largest vehicle exporter, and from 2022 to 2024 China almost doubled its vehicle exports from 3.1 million vehicles to almost 5.9 million, largely through the growth of passenger car sales, which grew from 2.5 million units to over 4.9 million vehicles.
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Kez Casey migrated from behind spare parts counters to writing about cars over ten years ago. Raised by a family of automotive workers, Kez grew up in workshops and panel shops before making the switch to reviews and road tests for The Motor Report, Drive and CarAdvice.
