Since 2020, 76% of China’s auto exports have been ICE vehicles, with total annual shipments rising from 1 million to a likely 6.5 million this year, Reuters reported.
China has rapidly increased exports of gasoline-powered cars in recent years, even as Western countries raise alarms about the impact of Chinese overcapacity in electric vehicles (EVs).
But the surge in exports of internal combustion engine (ICE) cars — a segment that also lost ground in China as EVs took off — poses a bigger threat to legacy automakers, a Reuters investigation has found.
Since 2020, 76% of China’s auto exports have been ICE vehicles, with total annual shipments rising from 1 million to a likely 6.5 million this year, Reuters reported.
Non-EV cars are selling especially well in emerging markets across Eastern Europe, Latin America and Africa, where EV adoption remains slow and charging infrastructure is limited. China’s largest export destination for these vehicles is Mexico.
Pricing and policy support
Chery is the top exporter of gasoline-powered passenger cars, followed by SAIC, Changan and Geely. Several state-owned players that lost ground at home to private EV makers like BYD have expanded by targeting these emerging markets.
State backing and aggressive pricing strategies in overseas markets are helping them gain share.
SAIC’s exports climbed from nearly 400,000 units in 2020 to more than 1 million last year. Dongfeng’s exports jumped to nearly 250,000 vehicles last year — almost four times its volume five years ago — even though its global sales have fallen overall.
But Dongfeng isn’t worried. “The fact that we’re state-owned is key… There’s no question that we will survive,” the company’s Europe manager Vernooij told Reuters. While China focuses on long-term EV dominance, its ICE cars have found thriving demand abroad — helping Chinese automakers build global brand recognition.
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