May sales figures for the automotive sector have been released, showing a significant market recovery. Compared to a relatively flat April, most automakers reported impressive month-over-month growth in May. Year-over-year comparisons, however, presented a more mixed picture.

Among traditional automakers, BYD Company Limited, Chery, and Geely saw positive growth. In contrast, SAIC Motor, Changan Automobile, and Great Wall Motors reported year-on-year declines. A breakdown of their overseas sales tells a different story, with all six companies achieving substantial growth abroad, ranging from a minimum of +32.46% (SAIC Motor) to a high of +184.0% (Geely). This starkly outperforms their domestic results, painting a picture of domestic stagnation contrasted with flourishing international sales.

With domestic competition remaining fierce, exports have become a key focus for many automakers. Beyond the consistently strong performers Chery and SAIC Motor, Great Wall Motors and BYD Company Limited also delivered standout performances. Notably, overseas sales accounted for over 50% of Great Wall Motors' total sales for the first time, establishing a new growth pillar. BYD Company Limited, with 160,600 units sold abroad, continues to closely trail Chery, with a gap of just over 20,000 vehicles.

Over the past 12 months, BYD Company Limited's overseas sales have exploded, reaching a cumulative 1.865 million units, a 112% year-on-year increase. The proportion of its sales coming from international markets has risen from 22.5% in June 2025 to 42.0% in May this year, a near 20-percentage-point gain. Looking at total exports from January to May, BYD Company Limited has shipped 614,500 vehicles, coming remarkably close to Chery (752,800 units), which has held the top export spot for 23 years.

Global oil prices continue to climb due to conflicts in the Middle East, significantly increasing vehicle operating costs. Surveys indicate that electric vehicle sales in 37 countries set monthly records in March or April, signaling a consumer shift away from gasoline-powered cars toward more cost-effective EVs.

This trend undoubtedly benefits Chinese brands globally. Data shows China exported 900,000 complete vehicles in April, a 70% year-on-year surge. New energy vehicle exports, including pure electric and plug-in hybrid models, reached 430,000 units, doubling from the previous year and accounting for nearly half of total vehicle exports. According to the International Energy Agency, 55% of new pure electric and plug-in hybrid vehicles sold in 2025 in markets outside China, the US, and Europe were manufactured in China.

BYD Company Limited has set an overseas sales target of 1.3 million vehicles for 2026 (up from 1.054 million last year). Having already achieved 47.4% of this goal in the first five months, the company is on track to exceed its annual target based on current trends.

Key Players Among New Energy Vehicle Startups

Among new energy vehicle startups, LEAPMOTOR has regained momentum after a sales slump in January-February. Following its return to the 50,000-unit sales mark in April, the company pushed further in May, achieving a breakthrough 81,500 units. This not only makes it the first startup to surpass monthly sales of 80,000 units but also places it far ahead of competitors like Harmony Smart Drive, NIO, Xiaomi, and Li Auto, echoing the pattern of BYD Company Limited distancing itself from rivals in the past.

Adhering to a philosophy of "quality without the high price," LEAPMOTOR's new models have been consistently successful. The popularity of the LEAPMOTOR A10 and D19, along with the upcoming LEAPMOTOR D99 set for a July launch, is expected to propel the company toward its goal of annual sales exceeding one million units.

In overseas markets, leveraging Stellantis' global network of over 850 outlets across more than 30 countries, LEAPMOTOR has established a global presence encompassing channels, technology, and production capacity. In May alone, it exported over 20,000 vehicles (24.5% of total sales, a 134% year-on-year increase). From January to May, cumulative exports exceeded 75,000 units, a 750% increase, leading among new energy vehicle startups in overseas expansion.

Overseas business has become a second growth engine for LEAPMOTOR. With the gradual implementation of localized production and the launch of new models, its international sales are poised for sustained rapid growth, making its annual target of 150,000 overseas units highly achievable.

Market Dynamics and Competitive Landscape

Dozens of new models launched last month generated limited market discussion, with even fewer achieving breakout success. The domestic market is fiercely competitive, with automakers employing various tactics like feature democratization, specification wars, technology bargaining, and emotional marketing. Yet, the most powerful strategy remains offering a lower price than competitors.

Take BYD Company Limited as an example: pre-orders for the Tang EV exceeded 100,000; cumulative orders for the Song Ultra EV surpassed 80,000 within two months of launch; the third-generation Yuan PLUS received over 30,000 orders in a week; and undelivered orders for the Titanium 7 EV totaled more than 80,000. Such figures are the envy of the industry.

However, while these numbers are impressive, domestic struggles need not be discouraging. Shifting focus to the global competitive arena may reveal new opportunities. This strategic pivot is not just a determination for traditional automakers but a necessary path for new energy vehicle startups to evolve into global players.

Final Observations

In May, the sales composition for Chinese auto brands underwent a fundamental shift. For traditional automakers, the model has transitioned from "domestic focus, overseas supplement" to "consolidating the domestic base while expanding growth overseas." The rising proportion of exports reflects not only the enhanced product strength and brand power of Chinese vehicles but also a strategic transformation by domestic automakers to navigate the saturated domestic market.

The aggressive pursuit of global market share by representative Chinese automakers like BYD Company Limited (traditional) and LEAPMOTOR (startup) holds the potential to further increase the global market share of Chinese brands. This represents a strategic upgrade from "going out" to "going deep," and through differentiated strategies, they are well-positioned to maintain and extend their leadership in market share.