China's move to bring exports of pure electric passenger vehicles under a licensing regulation is expected to enhance overseas user experience and protect brand reputation by ensuring stronger quality control, better after-sales services and a more orderly export environment, industry experts said.

"By standardizing exporters and procedures, the new policy will help control the outflow of low-quality products from the source and encourage automakers to shift from a 'volume-driven' to a 'quality-driven' growth model," said Cui Dongshu, secretary-general of the China Passenger Car Association.

The comments followed a joint announcement by the Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administration of Customs and the State Administration for Market Regulation on Sept 26, which stated that exports of pure electric passenger vehicles equipped with vehicle identification numbers will be subject to licensing requirements from Jan 1, 2026.

"The core goal of licensing is to close loopholes by imposing strict qualification thresholds, directly restricting unauthorized entities and preventing quality risks caused by intermediaries," Cui said.

Cui noted that in earlier years, many exported pure EVs were low-speed cars without VINs, which partly explained the less stringent management standards at the time.

A VIN identifies a specific vehicle, providing detailed information about its manufacturer, model year, place of assembly and specifications.

"Today, EVs with VINs have become mainstream in the pure EV category, and Customs authorities have already begun standardized classification, laying the foundation for more regulated export management," he said.

According to data from the General Administration of Customs, from January to August this year, exports of pure EVs with VINs reached 1.082 million units, with a total value of 159.5 billion yuan ($22.4 billion). Over the same period, the number of all pure EV exports totaled 2.253 million units worth a combined 294.8 billion yuan.

The new rules specify that only automakers and their authorized distributors may apply for licenses, and they may only export vehicles of their own brands.

"At present, some unauthorized firms purchase vehicles in the domestic market and ship them to overseas destinations with no after-sales support, in order to bypass marketing and service costs. This undermines both user experience and the image of Chinese brands," said Wu Songquan, senior chief expert at the China Automotive Technology and Research Center.

An excessive number of exporters crowding the same overseas markets may also lead to homogeneous competition and price wars, Wu added.

"Designating automakers as the major responsible entity will push them to build rigorous quality systems and exercise price discipline with a long-term view," he said.

Wu stressed that direct participation in overseas markets will also enable carmakers to adapt products locally and ensure sustained service.

"When automakers integrate overseas markets into their value chains, they will increase research and development, tailor products for local demand and set up full-cycle service networks — from local parts depots and professional training to multilingual support and extended warranties — creating a seamless user experience and strengthening overall brand reputation," Wu said.

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said that by regulating the flow and quality of vehicles entering international markets, China is also reacting to international EV markets that are marked with growing protectionism and friction.

It positions the country not just as a dominant manufacturer, but also as a responsible and predictable player in the global trade of tomorrow's automobiles, Cui from UIBE said.

"When you can demonstrate controlled, rules-based exports, it changes the narrative. It becomes harder for partners to argue against managed trade when you are already managing it yourself," he added.

To further protect export orders and provide higher-quality products for overseas markets, the policy also requires exporters to meet certain conditions, including being listed in the Ministry of Industry and Information Technology's vehicle production catalog, holding valid CCC certifications and maintaining after-sales service capabilities aligned with their export scale. Automakers and their authorized partners must also share legal liability for quality assurance and after-sales service of exported vehicles.

"By strictly reviewing qualifications, the policy will effectively limit exports by small manufacturers with weak technology and insufficient service capabilities abroad, raising the overall quality of China's EV exports," Wu said.

Contact the writers at lijiaying@chinadaily.com.cn