Beijing’s electric vehicle policies have triggered a glut of traditional cars, now being exported en masse to emerging economies.
By yourNEWS Media Newsroom
China is inundating global markets with millions of unsold gasoline-powered vehicles as it rapidly transitions toward electric mobility at home, according to a Reuters investigation. The report reveals that state-backed automakers are exporting record volumes of conventional cars to Africa, Latin America, Eastern Europe, and other developing regions while Beijing consolidates its domestic focus on electric and hybrid technology.
China’s electric vehicle (EV) transformation has been swift and far-reaching, with EVs now comprising half of all domestic vehicle sales. That policy shift, bolstered by subsidies and government mandates, has left traditional “legacy” carmakers struggling to unload millions of gasoline models that no longer appeal to local buyers. Those surplus units are now flooding international markets, upending competition and reshaping global auto trade flows.
“While Western policymakers have focused on the threat of China’s heavily subsidized EVs, protecting their markets with tariffs, U.S. and European automakers face greater competition from China’s gas-guzzlers in countries from Poland to South Africa to Uruguay,” Reuters reported.
Citing data from Shanghai-based consultancy Automobility, the investigation found that since 2020, gasoline-powered vehicles have made up 76 percent of China’s auto exports. Annual shipments surged from one million to more than 6.5 million in 2025 — a more than sixfold increase in just five years.
The export boom, Reuters said, is “driven by the same EV subsidies and policies that wrecked the China businesses of automakers including VW, GM and Nissan,” which ignited a “devastating price war” at home. State-owned automakers such as SAIC, BAIC, Dongfeng, and Changan have emerged as dominant exporters of their unsold gasoline fleets.
“The phenomenon highlights the far-reaching impacts of Chinese industrial policy, as foreign competitors struggle to keep pace with government-backed firms chasing Beijing’s goals to dominate critical sectors nationally and globally,” Reuters emphasized.
Although EVs remain China’s long-term priority, the report notes that gasoline cars are currently thriving in developing economies where charging infrastructure is limited. “For now,” Reuters wrote, “gas-powered cars are selling better in second-tier markets such as Eastern Europe, Latin America, and Africa.”
China’s short-term strategy, according to the report, is pragmatic: while building its electric dominance domestically, Beijing is enabling its carmakers to gain international market share “by giving customers whatever they want.”
The spillover is creating ripple effects for established automakers worldwide. Fiat, Ford, and Chevrolet are losing ground in several export markets as Chinese brands undercut prices and expand distribution networks. Mexico has been hit particularly hard, becoming China’s largest overseas destination for gasoline vehicle exports. The proximity to the United States has raised alarms in Washington, where officials have warned that Chinese companies may exploit Mexico as a “back door” to bypass U.S. tariffs.
In response, Mexico increased its import duties on Chinese cars from 20 percent to 50 percent in September under U.S. pressure, Reuters said.
Chinese automaker Chery exemplifies the surge, with exports jumping from 730,000 vehicles in 2020 to 2.6 million in 2024. State-owned Dongfeng has seen a similar rise, expanding from 250,000 units in 2019 to nearly a million in 2024 — an almost fourfold increase.
Jelte Vernooij, Dongfeng’s Central Europe manager, told Reuters that the export expansion has been “critical” for the company’s survival amid collapsing domestic sales. “The fact that we’re state-owned is key,” Vernooij said. “There’s no question that we will survive.”
China’s global car export wave, born from domestic oversupply and industrial policy, is reshaping the balance of power in the auto industry — even as the country accelerates its march toward an all-electric future.
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