China Implements New Export Standards For The End Of The Electric Car Price War And Maintains Global Image

BYD XI'AN, the world's largest car carrier. (Photo: BYD Global)

JAKARTA - The Chinese government will impose new rules for export of electric vehicles (EV) starting in 2026. Car manufacturers from the Bamboo Curtain Country will be required to have special permits before exporting vehicles abroad.

This policy is seen as a step towards reducing price wars that have dominated the global EV market. This new rule comes after many car manufacturers and traders in China are selling vehicles overseas with a "silent" status to overcome overstock in the country.

The practice is considered to trigger unhealthy competitions, press prices, and ultimately damage the image of the Chinese brand in the international market.

Director of the Research Policy Office at the China Automotive Technology Research Center, Wu Songquan, assessed that uncoordinated exports could have a negative impact on consumers.

"Like big international brands that have gained global trust through high quality, Chinese car manufacturers must also build a standardized process and achieve high-quality exports through independent operations," he said, as quoted by Drive, Friday, October 3.

A similar concern was conveyed by the Chairman of Changan, Zhu Huarong, who asked for stricter supervision of car exports so that the reputation of China's automotive industry would not be tarnished in the global arena.

In addition, the central government also emphasized that it will regulate the 'irrational competition' in the EV sector by monitoring prices and investigating production costs. This step is referred to as a long-term strategy to ensure the growth of the electric vehicle industry remains healthy and sustainable.

For global markets, including Southeast Asia, this policy could be a turning point. Chinese brands such as BYD, which have been aggressively expanding at affordable prices, are likely to face new challenges.

With export permits, their flexibility in suppressing prices can be reduced, while destination countries such as Europe and the United States have also already imposed additional tariffs to protect their industries from the dominance of low-cost EVs from China.