China’s car exports are booming as automakers face a sharp slowdown in their home market.

In July, Chinese passenger-car sales fell for the 10th consecutive month, dropping 21.1% compared with a year earlier.

At the same time, vehicle exports surged 88.2%, reaching about 923,000 vehicles as manufacturers increasingly target overseas buyers.

Also, electric and plug-in hybrid exports were particularly strong, rising almost 148% year-on-year in July.

Weak domestic demand, high fuel costs and intense competition are putting pressure on Chinese carmakers and their profit margins.

Companies are expanding into markets across Europe, Southeast Asia, Latin America and the Middle East to offset weaker sales at home.

Analysts say export growth is becoming an increasingly important source of growth for China’s auto industry as the domestic market remains under pressure.