China’s automakers will need permits to export electric vehicles starting next year, adding to signs the country’s officials are tightening their management of the world’s biggest car market.
Export licenses will be required from Jan. 1 and are designed to promote the “healthy development” of the EV industry, the Ministry of Commerce said Friday.
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.
Still, shipments have continued largely unabated. In the first seven months of this year, Chinese carmakers exported more than $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 the region’s largest car market.
It’s not immediately clear how Beijing’s move will impact business 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.
BMW, which is producing electric Mini Cooper and Aceman models in China for Europe with its partner Great Wall Motor, said that as a foreign manufacturer, it has always had to apply for export licenses and will now need to re-apply for them next year.
The company added it doesn’t expect a restriction to its business in the country.
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.
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