China tightens EV export rules with permits required from 2026

The move aims to promote the “healthy development” of the country’s EV industry

Automakers will need permits to export electric vehicles from China starting next year, adding to signs the country’s officials are tightening their management of the world’s biggest car market.

Export licences will be required from Jan one and are designed to promote the “healthy development” of the EV industry, the Ministry of Commerce said on Friday (Sep 26).

The move brings the sector in line with other types of cars, as well as motorbikes, which require permits.

Beijing has tightened its grip on China’s auto market this year after a bruising EV price war pushed some manufacturers to the brink, raising concerns among officials about the industry’s longer-term health.

So far, there’s been a crackdown on the aggressive discounting that’s been a feature of the sector for years and an order for carmakers to speed up their payments to suppliers.

EV exports from Chinese manufacturers led by BYD, Nio and Xpeng have been at the heart of geopolitical tensions, particularly with the European Union, which has imposed hefty tariffs to stem their flow.

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Still, shipments have continued largely unabated. In the first seven months of this year, Chinese carmakers exported more than US$19 billion worth of electric-powered vehicles, roughly the same as a year earlier, with Europe the top market despite the EU tariffs. BYD added four new executives in Germany this week to bolster sales in Europe’s largest car market.

Beijing’s move is set to complicate business also for Western automakers. Tesla, Volkswagen and BMW export electric models from plants they operate in China, taking advantage of the country’s low manufacturing costs and well-established EV supply chain.

Tesla’s Shanghai factory makes the Model 3 sedan and Model Y sport utility vehicle, which are sold locally and abroad. Its shipments from the plant declined year on year in seven out of the first eight months of 2025, according to the China Passenger Car Association.

Volkswagen earlier this year announced plans to expand exports from China to other Asian markets, South America and the Middle East. It already ships the locally assembled Cupra Tavascan electric SUV to Europe.

BMW is producing electric Mini Cooper and Aceman models in China for Europe with its partner Great Wall Motor The German companies had no immediate comment. BLOOMBERG