NextFin news, On Friday, September 26, 2025, China's Ministry of Commerce, along with other regulatory bodies, announced a new policy requiring electric vehicle (EV) manufacturers to obtain export permits starting January 1, 2026. This regulation targets battery electric vehicles (BEVs) exported overseas and is designed to promote the healthy development of China's new energy vehicle trade.
The policy excludes internal combustion engine vehicles, hybrids such as plug-in hybrid electric vehicles (PHEVs) and extended-range electric vehicles (EREVs), and smaller BEVs without vehicle identification numbers. According to customs data, the regulation will affect approximately 50% of China's plug-in EV exports, covering about 1.08 million units year-to-date under the regulated category.
China is the world's largest car exporter, with about 5.5 million vehicles sold abroad last year, nearly 40% of which were electric vehicles. The export permit requirement is part of Beijing's broader effort to tighten control over the EV sector amid concerns about oversupply, aggressive price competition, and the sustainability of the industry.
The new export controls aim to curb the longstanding practice of aggressive discounting and ensure that only original equipment manufacturers (OEMs) or OEM-authorized companies can apply for export permits. This measure is expected to strengthen government oversight of EV exports and prevent the export of low-quality vehicles that have faced criticism in some overseas markets.
BYD, China's largest new energy vehicle exporter, recorded 306,000 units exported overseas in the first seven months of 2025. Analysts suggest that the government is unlikely to restrict BYD's direct exports under the new policy. Other international automakers operating in China, such as Tesla, BMW, and Volkswagen, have not yet clarified the immediate implications of the export permit requirement on their operations.
The policy also aligns EV export regulations with existing rules for other vehicle exports, including cars and motorbikes. It introduces stricter standards and controls over exportable models, with the government potentially approving only exporters that can provide adequate after-market support.
This regulatory change comes amid trade tensions, including tariffs imposed by the United States and European Union on Chinese-made EVs, citing concerns over unfair advantages from government subsidies. Despite these challenges, Chinese EV exports have remained strong, with Europe continuing as the primary recipient.
China's domestic EV market remains robust, with EVs accounting for more than 50% of total passenger vehicle sales in the first half of 2025. The country's automotive sector aims to surpass annual sales of 40 million vehicles within five years, according to the China Passenger Car Association.
In summary, the new export permit requirement effective January 1, 2026, reflects China's strategic move to improve the quality, competitiveness, and global reputation of its electric vehicle industry by enhancing regulatory oversight and controlling export practices.
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