While the world obsesses over China's electric vehicle revolution, a far more stealthy and impactful trend is unfolding right under our noses: China is flooding global markets with millions of gasoline-powered cars it can no longer sell at home. Yes, you read that right. While Western governments fret about the rise of Chinese EVs, it’s the old-school internal combustion engine (ICE) vehicles that are quietly devouring market share in emerging economies. But here's where it gets controversial: could this be a deliberate strategy to dominate the global auto market, or simply a byproduct of China’s overambitious EV push?
China’s shift to electric vehicles has been nothing short of seismic. Brands like BYD have skyrocketed to success, while traditional state-backed giants have been left scrambling. But instead of fading into obscurity, these legacy automakers are dumping their unsold gasoline cars into regions where EV infrastructure is still in its infancy—places like Eastern Europe, South America, Africa, and Southeast Asia. These markets, once dominated by Western brands, are now becoming battlegrounds for Chinese automakers desperate to offset their domestic losses.
And this is the part most people miss: Since 2020, nearly 75% of China’s auto exports have been gasoline-powered vehicles, according to Reuters. That’s millions of cars headed to markets where foreign automakers like GM and Ford once reigned supreme. China’s exports have surged from 1 million vehicles annually to a projected 6.5 million this year, catapulting it to the top spot as the world’s largest auto exporter. While EVs grab the headlines, the real story is how China is reshaping the global combustion engine market with the same relentless aggression.
The root of this export boom lies in China’s overcapacity crisis. Years of subsidies, local government support, and a national mandate to dominate the EV sector created a price war that decimated domestic gasoline car sales. Today, China’s idle factories could produce 30 million gasoline vehicles annually—far exceeding domestic demand. Rather than shuttering these plants, Chinese automakers are offloading their excess inventory to price-sensitive markets abroad.
Take SAIC, for example. Once heavily reliant on joint ventures with GM, the company saw its domestic sales plummet from over 1 million to just 400,000 units. But overseas, it’s a different story: SAIC exported over 1 million vehicles last year. Similarly, Chery’s global sales soared from 700,000 in 2020 to over 2.5 million in 2024, with the majority being gasoline-powered cars. Even more startling, Chinese pickups are undercutting their own joint venture partners. Dongfeng, for instance, sells a rebadged Nissan Navara in Uruguay for two-thirds the price of the original.
Western automakers are finally waking up to this threat. In Mexico, Chinese brands are poised to capture 14% of the market, eating into Chevrolet and Ford’s customer base. In South Africa, they control 16% of the market while selling virtually no EVs. In Chile, one in three new cars is Chinese, and most run on gasoline. By 2030, consultancy forecasts predict Chinese automakers will add another 4 million overseas sales, giving China nearly a third of the global auto market. And let’s be honest—this takeover is far from over.
But here’s the burning question: Is this a calculated move to dominate both the EV and ICE markets globally, or simply a desperate attempt to salvage China’s overinvested auto industry? Are Western automakers too late to the game, or can they adapt to this new reality? Let us know what you think in the comments—this is a debate that’s just getting started.
