Foreign Media: China's Fuel Vehicles Are Surging into Global Markets
Western countries have not been worrying about China's competition in the electric vehicle sector for the first year. Traditional global automakers are beginning to retreat in the price war, while Chinese electric vehicles are seizing a large market share from Japanese and European brands with their designs that meet consumer needs and highly competitive prices. However, Reuters' article also points out that traditional Chinese fuel vehicle manufacturers pose a more severe challenge to the global market.
As the development of China's electric vehicle industry, fuel vehicle manufacturers' sales in the domestic market have continued to decline. Therefore, they were forced to increase exports. Since 2020, fuel vehicles accounted for 76% of China's total car exports, and the annual export volume has increased six times over, reaching 6.5 million units. As a result, just by exporting fuel vehicles, China became the world's largest car supplier last year. The largest Chinese car export companies are state-owned industrial giants SAIC Group, BAIC Group, Dongfeng Group, and Changan Group.
Currently, China's internal combustion engine vehicles sell better in secondary markets such as Eastern Europe, Latin America, and Africa, because these regions have weak electric vehicle charging infrastructure. In the long term, China aims to become a leader in the global electric vehicle and plug-in hybrid vehicle markets. However, many Chinese automobile manufacturers are striving to meet various consumer demands while developing overseas brands. They focus on producing cheaper cars in developing countries, although these cars often use outdated technology. This makes companies like Volkswagen, General Motors, and Stellantis, which usually come equipped with more advanced safety features and software, vulnerable to the impact of low-cost cars exported from China.
Reuters pointed out that the real competition between Chinese automakers and traditional automakers is not in Europe or the United States, but in emerging markets. Mexico remains China's largest export market, which is unfavorable for the United States, as the U.S. has actually banned the import of Chinese cars and set up trade barriers to ensure national and economic security. Data from GlobalData shows that this year, Chinese manufacturers will sell 200,000 cars in Mexico, accounting for 14% of the local market share. At the same time, the market shares of Fiat, Ford, and Chevrolet are declining. GlobalData predicts that Chevrolet's sales in Mexico this year will be 57,292 units, a 17% decrease from 2023.
However, some countries have already seen saturation in the Chinese car market. For example, in Russia, the market share of Chinese car manufacturers has grown to 64% over the past three years. From January to September 2025, the delivery volume of Chinese passenger cars to Russia decreased by 58%, reaching 357,700 units. This is mainly due to the increase in import tariffs and fees.
Many countries are trying to protect their own manufacturers by imposing additional tariffs on Chinese car imports. However, since a large portion of Chinese exporters are state-owned enterprises, price may not play a decisive role. There are currently very few profitable Chinese car brands. Finally, Reuters concluded that the main challenge facing Chinese producers is how to secure market share, as the price war in the domestic market is putting them in a more intense competitive environment.
Original: toutiao.com/article/1850489269904472/
Statement: This article represents the views of the author alone.