 "China floods global markets with gasoline cars as EV boom reshapes industry – Firstpost")
Chinese auto exports since 2020, and total annual shipments jumped from 1 million to likely more than 6.5 million this year, according to data from China-based consultancy Automobility.
China dominated the vehicle electric market crushing sales of gasoline-powered vehicles. The Chinese electric-vehicle industry captured half its domestic market in just a few years.
Chinese players then saw their sales collapse and responded to the world with fossil fuel vehicles which could not be sold at home.
The Western countries face a major threat from China as it is heavily focused on subsiding EVs, protecting their markets from tariffs. When in competition with US and European automakers, they excel being the gas-guzzlers from Poland to South Africa.
After dominating the rare earth market, China’s fossil fuels exports will have been a symbolic strength to the country. Fossil-fuel vehicles have accounted for 76 per cent of Chinese auto exports since 2020, and total annual shipments jumped from 1 million to likely more than 6.5 million this year, according to data from China-based consultancy Automobility.
The boom in gasoline-powered exports is driven by the same EV subsidies and policies that wrecked the China businesses of automakers including VW, GM and Nissan by underwriting scores of Chinese EV makers and igniting a devastating price war, a Reuters examination found.
Beijing continues to dominate the critical sectors nationally and locally while all the international partners focus and still struggle to keep pace with government backed firms.
China’s gasoline-vehicle exports alone – not including EVs and plug-in hybrids – were enough last year to make it the world’s largest auto-exporting nation by volume, industry and government data show.
The influx of Chinese gasoline cars into emerging and second-tier markets reflects a collision between Beijing’s current EV push and older policies that built China’s domestic gasoline-vehicle industry by leveraging foreign automakers’ technology.
As the state owned players are racking up sales in export markets that were once the domains of the same foreign automakers who are their partners in China.
Second-tier markets
There’s also no question that, for now, gasoline cars are selling better in second-tier markets, such as Eastern Europe, Latin America and Africa, with scarce EV-charging infrastructure.
Beijing has continuously been dominating EVs and plug-in hybrids globally. But in the interim, many Chinese automakers are building overseas brands by giving customers whatever they want.
Only two of China’s top 10 auto exporters focus exclusively on battery-powered vehicles. One is the US electric-car pioneer Tesla. The other is BYD, which sells only EVs and plug-in hybrids.
Most brands have focused on gasoline-car exports, the managers said, simply because they’re easiest to sell in most regions. “We can fine-tune our offering for every market,” said Nic Thomas, Changan’s European marketing director.
(With inputs from Reuters)
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