China's rapidly expanding automotive exports

China's rapidly expanding automotive exports have emerged as a key driver of the Pure Car and Truck Carrier (PCTC) market in 2026, supporting vessel utilisation and elevated charter earnings. According to the China Association of Automobile Manufacturers (CAAM), exports reached 8.205m vehicles in January-September, up 65.8% y-o-y, including 4.006m newenergy vehicles (NEVs). September alone saw 1.053m exports, of which 571,000 were NEVs, up 160% y-o-y. Meanwhile, domestic NEV sales contracted by 9.4% y-o-y, reinforcing manufacturers' focus on overseas markets amid subdued domestic demand and intense price competition.

Behind this export expansion lies China's highly integrated automotive supply chain, spanning mineral processing, battery production, electric motors and vehicle assembly. According to the IEA, China accounts for 91% of global refining of magnetrelated rare earths, 94% of sintered permanent magnet production and over 80% of battery cell output. Rare-earth magnets are used in many EV motors, rather than in lithiumion batteries themselves. Such dominance provides Chinese automakers with substantial economies of scale and cost advantages, while exposing overseas manufacturers to potential supply disruptions.

This story was originally published by Breakwave Advisors. Read the full story at Breakwave Advisors →