(Yicai) April 7 -- The so-called reciprocal tariffs that the United States has put on Chinese goods will have a limited impact on China’s car industry, according to the head of one of the country’s leading auto industry bodies.

Chinese carmakers have virtually no presence in the US market, so the tariffs will not do much damage, Cui Dongshu, secretary-general of the China Passenger Car Association, said in a post on his WeChat account today. To boost overseas sales, they should focus more on small electric vehicles and plug-in hybrids, he added.

China exported just 116,000 vehicles to the United States last year, accounting for a mere 1.81 percent of China’s total auto exports, and the shipments included models made by American firms with joint ventures in China, such as General Motors.

US President Donald Trump signed an executive order on "reciprocal tariffs" last week, announcing a baseline 10 percent levy on trading partners and additional tariffs for some. Chinese imports face an additional 34 percent border tax.

China’s auto exports have historically been dominated by JVs, and have faced constraints in developed markets such as Europe, the US, Japan, and South Korea, Cui noted, adding that car exports lag behind those of motorcycles and auto parts.

Roughly 15 percent of China’s total motorbike exports go to the US and Canada, while shipments to Europe account for 18.5 percent. Auto part exports to North America and the European Union represent 21.2 percent and 18.1 percent of the total, respectively.

Cars sold in China account for about 35 percent of the global auto market, but Chinese brands claim less than 28 percent of sales, and there is significant room for growth overseas, particularly in the southern hemisphere and Southeast Asia, Cui noted.

Compact EVs are especially suited to places with narrow roads and consumer preferences for smaller vehicles, he said, so China should accelerate the growth of mini EVs and plug-in hybrid technology to meet international demand.

In 2024, China exported 5.859 million vehicles, up 19.3 percent from the previous year, and exports are expected to rise 5.8 percent this year to 6.2 million. The CPCA previously stated in a report that as durable consumer goods, auto exports could reach the tens of millions annually.

Editor: Tom Litting