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News from ECG
In the H1 period of 2025, the top destination for new vehicles exported from China was Mexico, with an increase of 24% year on year accounting for 8% of the total volume of exports from China. But in second position, and of significant importance is the UAE. This market has seen a 62% y/y jump in volume. And its not just the UAE. The Middle East region now is the second most important destination for Chinese made new vehicles, after the Americas.
Europe is the third most important region for volume exports from China. Overall the region has witnessed a 2% increase in marketshare, now accounting for 17% of total new vehicle exports from China. But within the region there are huge growth regions. For example, the UK has witnessed a 20% increase in direct exports from China, while Spain has seen a 65% year on year jump. Italy is up by 49% y/y while Belgium, still the largest market by volume, has seen growth of 8%.
What’s going on in the Middle East?
Well, the starting point in the Middle East is that there is a high level of disposable income and considerably low car penetration in the overall population. Take Saudi Arabia for example, the country has a population of over 30 million but current car penetration sits at just 162 cars per 1,000 people. For comparison the UAE has a far lower population, but car penetration has risen to around 500 per 1,000 people. To put things in perspective, in the EU, the latest data from Destatis shows that there are 571 cars per 1,000 people. In fact, BYD’s latest new vessel the BYD Hefei docked 4 days ago at the port in Jeddah, the access point into the Kingdom of Saudi Arabia.
While the region is now a target for Chinese made vehicles, for automakers and those involved in finished vehicle logistics, the region is of growing significance as a growth region. In 2024, exports direct from the EU of new finished vehicles hit 286,806 units to the Middle East region.
ECG Members can access the updated H1 Exports from China report here.