China has taken a significant step to regulate its rapidly growing electric vehicle (EV) export market. According to an official statement, licensing will be mandatory for exporting fully electric vehicles abroad starting in 2026.

New Regulation for Electric Vehicle Exports from China

Authorities stated that the primary reason behind this requirement is to prevent unlicensed exporters who take vehicles out of China without providing after-sales service to customers.

These unlicensed exporters are reported to cause three main negative effects: worsening the experience of customers abroad, undermining brand trust, and disrupting price competition in foreign markets.

With the new era, only automobile manufacturers and their authorized companies will be able to apply for export licenses. Recent analyses indicate that China will reach a level of exporting 10 million cars annually by 2030.

China has become one of the most significant powers in the automotive world thanks to its substantial government support, monopoly position in batteries, high production capacity, and significant investments in established manufacturers.

According to industry analyst Felipe Munoz, there are currently more than 100 different local car brands in the country. Giant groups like BYD, Changan, Chery, and Geely account for more than half of China’s car sales, and numerous brands are under their umbrella.

Felipe Munoz stated that new names will continue to enter the market, while technology companies like Xiaomi, which was founded outside of the automotive sector thanks to the opportunities China provides, and Dreame, renowned for its robot vacuum cleaners, are also working on electric car production.

However, analysis reveals that a significant portion of the numerous existing Chinese car brands will not survive the next decade. What are your thoughts on this? Share your thoughts with us in the comments section below.