Exports of China-made foreign vehicles will be boosted in coming years as domestic car sales slump and restrictions on overseas firms are loosened, according to a report by the Ministry of Commerce (MOFCOM) and the China Automotive Technology and Research Center. Manufacturers like Ford Motors, GM, BMW and Honda are expected to expand manufacturing in China as Beijing allows foreign firms to have wholly-owned local ventures that will increasingly serve the global market. The traditional “market for technology” strategy, under which China attracted foreign car brands to make vehicles for the local market, is giving way to permitting overseas firms to own factories in China and use the country as a production base for the rest of the world. Car sales in China dropped 5.4% in November, marking a 17th consecutive monthly decline, according to the China Association of Automobile Manufacturers (CAMM).

Despite predictions of a boost to China-made car exports in the future, shipments of finished vehicles in November accounted for just 3.2% of the 2.6 million vehicles manufactured in the country, according to CAAM. Car exports were expected to have dipped by about 5% in 2019, as exports to the United States fell drastically amid the U.S.-China trade war, which has seen car manufacturers like GM and Ford Motors hit with tariffs, the CAAM said in October. “China’s small scale of automobile exports and the low percentage in overall exports are really not in line with China’s position as the world’s largest production base and consumer market,” said the report, as electric vehicle manufacturer.

Tesla delivered 15 Model 3 sedans assembled at its new Shanghai factory to company employees ahead of schedule. Tesla’s Shanghai factory is China’s first wholly foreign-owned car plant. The U.S. car company said it would deliver a second batch of Model 3 sedans from its USD2 billion factory to customers this week. Tesla broke ground on its first overseas plant, Gigafactory 3, early in 2019. It will target the domestic market with its China-made cars, as exports to the U.S. would be hit by tariffs. China is showering Tesla with favors because the government has identified the new energy sector as one of 10 key industries for self-sufficiency and global leadership under its “Made in China 2025” economic blueprint. Tesla plans to cut the starting price for its China-made Model 3 vehicles to CNY299,050 after receiving Chinese subsidies for electric vehicles. The government has also exempted imported Model 3 cars from consumption tax, making it cheaper for local buyers.

Chery Automobile, China’s largest automobile exporter, plans to export 500,000 vehicles in 2025, with a total value of USD5 billion. Chery exported 126,993 vehicles in 2018 and 107,700 units in 2017, according to the company’s annual report. Chery is targeting sales in the U.S. and European markets in the future and already manufactures cars in Algeria and Brazil. In the first half of 2019, China’s new energy vehicle exports increased by 99.3% year-on-year and are expected to become a major driving force for car exports, the South China Morning Post reports.