While Europe is hotly debating electromobility, a development with enormous impact is quietly unfolding. Millions of gasoline-powered cars from China are flooding international markets, driven by state industrial policy, aggressive export strategies, and a shift in the balance of power within the automotive market. This advance has caught Western manufacturers unprepared, as it follows different rules than the familiar electric vehicle hype. China is thus deliberately filling the gap left by European manufacturers’ reduced offerings of combustion engine vehicles. (kosmo: 04.12.25)
Gasoline Engines as an Underestimated Weapon in Global Competition
The rapid rise of electromobility in the Chinese automotive market fundamentally changed demand. Electric vehicles quickly captured large market shares, while vehicles with conventional combustion engines lost relevance. This is precisely where a new export strategy came into play, as production capacities were maintained despite the weakening domestic market. Chinese manufacturers consistently steered these models abroad and found receptive markets there.
In parallel, car exports gained significant importance. According to data from the analysis firm Automobility, since 2020, around three-quarters of exports have been conventionally powered vehicles. Sales rose rapidly, and the global automotive market came under pressure. Western automakers suddenly found themselves confronted with aggressively priced offers, even though political debates focused almost exclusively on electric vehicles.
Industrial Policy as a Driver of Car Exports and Competition
Chinese industrial policy played a central role in this. Massive subsidy programs for electromobility financially strengthened the entire industry. This effect extended far beyond battery-powered vehicles, as it enabled favorable export prices for conventional models. Industry experts speak of a domino effect that reshaped global competition and dissolved old market boundaries.
Car exports from China grew from around one million to over 6.5 million vehicles per year in just a few years. This dynamic catapulted the country to the top of the global export statistics. It remains remarkable that gasoline-powered cars alone were sufficient to achieve this leading position. Electric vehicles played only a minor role, despite being a political focus.
Global Markets in Transition Due to New Entrants
The expansion of Chinese manufacturers transformed numerous global markets simultaneously. Regions in South America, Africa, and Southeast Asia opened up to new suppliers because of their compelling price, availability, and simple technology. Vehicles with conventional engines continued to be considered a reliable solution there, as charging infrastructure was lacking and maintenance costs remained manageable. This environment favored models with traditional engines.
A large-scale study by Reuters supports this development. Sales data from numerous countries, as well as interviews with more than 30 industry experts, paint a clear picture. Executives from Chinese corporations emphasized that international expansion is not a passing phase, but rather part of a long-term strategy. Western managers privately confirmed this assessment.
State-owned enterprises leverage decades of accumulated know-how
Among the key players are state-owned enterprises such as SAIC, BAIC, Dongfeng, and Changan. These companies benefited for decades from joint ventures with Western manufacturers. In the 1980s, Beijing mandated such collaborations as a condition of market entry. Many observers later described these partnerships as forced alliances of convenience, yet they provided technology, processes, and experience.
Today, these same corporations are drawing on this knowledge and emerging as serious competitors. Their vehicles with traditional combustion engines impress with robust technology, competitive prices, and fast supply chains. This is causing a shift in the global automotive market, forcing Western manufacturers to rethink their strategies, as the pressure from Chinese gasoline-powered vehicles continues to increase.
Long-term consequences for the automotive market
The current success of classic Chinese models does not mark a regression, but rather a transitional phase with a clear logic. As long as electromobility remains unevenly developed worldwide, combustion technologies will retain their place. Chinese manufacturers are consistently exploiting this reality and securing market share before regulatory frameworks converge globally.
Experts therefore anticipate continued dynamism in the automotive market. The combination of industrial policy, car exports, and global competition gives China a structural advantage. Gasoline engines are serving as a gateway, while other drive technologies are likely to follow.