Chinese automakers are accelerating their overseas expansion as weak domestic demand pushes exports to a record pace, with BYD and Geely among the manufacturers posting fresh export highs.

China's passenger-vehicle exports remained exceptionally strong in August, highlighting the growing importance of overseas markets for the country's automakers as sales at home declined for an 11th consecutive month.

Passenger-vehicle exports jumped 77.5% from a year earlier to 894,000 units in August, according to data released Tuesday by the China Passenger Car Association (CPCA). The increase was slightly slower than the 88.2% year-on-year surge recorded in July but still represented a substantial expansion in overseas shipments.

The contrast with the domestic market was stark. Passenger-vehicle sales in China fell 23.7% from a year earlier to 1.55 million units in August, accelerating from a 21.1% decline in July.

Electric vehicles and plug-in hybrids accounted for 64.7% of domestic passenger-vehicle sales, but sales of those vehicles declined 10.1% year on year in August, compared with a 3.9% drop in July. By contrast, exports of new-energy vehicles surged 154.7%, accelerating from 147.8% growth a month earlier.

The widening gap between domestic and overseas performance is pushing Chinese automakers to intensify their international expansion. BYD and Geely Auto both reported record export volumes in August as manufacturers increasingly look abroad to offset fierce competition and weakening demand in China.

Chinese automakers have continued to gain ground in overseas markets despite rising trade barriers and regulatory scrutiny. Their combination of competitive pricing, sophisticated technology and expanding EV lineups has helped them attract customers in Europe and emerging markets.

The export push is also becoming a structural growth strategy rather than simply a response to weak domestic demand. CPCA Secretary-General Cui Dongshu expects China's vehicle exports to reach 12 million units this year, with annual shipments potentially rising to between 18 million and 20 million vehicles by 2030.

Automakers that entered the international market later are increasingly under pressure to catch up. Xiaomi, which entered the EV market relatively recently, has signed agreements with German auto dealers ahead of its planned European launch next year as it seeks to establish an overseas distribution network.

Seres, which co-develops Aito vehicles with Huawei, illustrates the risks of falling behind in the export race. The company is facing intensifying competition in China's crowded premium EV market, while its comparatively late overseas expansion has limited its ability to tap foreign demand. Its total vehicle sales plunged 44% last month.

The rapid growth in exports, however, is raising concerns that the intense price competition that has battered Chinese automakers, suppliers and dealers at home could spill into foreign markets. Chinese regulators last week issued new guidelines governing automakers' overseas operations, warning manufacturers against frequent or steep price cuts and other practices that violate regulations, potentially harm consumers or damage Chinese brands' reputations.

Major manufacturers including BYD, Chery and Geely Holding have pledged to comply with the new guidelines. Regulators have not yet specified penalties for violations.

The regulatory intervention comes as China's auto industry undergoes a prolonged shakeout. Manufacturers are competing for market share in a saturated domestic market, while excess capacity and aggressive pricing have put pressure on profitability across the supply chain.

For the industry's strongest exporters, overseas markets offer an important outlet for that capacity and a way to diversify revenue. But the faster Chinese automakers expand abroad, the greater the likelihood of additional trade restrictions and scrutiny from governments concerned about pricing, industrial competition and the impact of Chinese imports on domestic manufacturers.

That leaves China's auto industry increasingly dependent on a delicate balance: finding new overseas customers quickly enough to compensate for weakness at home while avoiding the regulatory and trade backlash that could constrain its global expansion.