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China Floods Global Market With Unsold Gasoline Cars

  //automotive-transportation.news-articles.net/co .. ods-global-market-with-unsold-gasoline-cars.html
  Published in Automotive and Transportation on Tuesday, December 2nd 2025 at 1:58 GMT by The Daily Star

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China Floods the Global Market With Gasoline Cars It Can’t Sell Domestically

In a surprising turn of events, the world’s largest car producer is now flooding overseas markets with gasoline‑powered vehicles it can no longer find a home for in its own country. The article “China floods the world gasoline cars it can’t sell home” on The Daily Star dives deep into the paradoxical situation facing the Chinese automotive industry and explains why China, long celebrated for its manufacturing prowess, is now a major exporter of vehicles that many of its citizens simply don’t want to drive.

1. A Domestic Shift Toward Electrification

For decades, Chinese automakers have dominated the global production of internal‑combustion vehicles (ICVs). But China’s own market is undergoing a seismic shift. In 2023, electric vehicles (EVs) captured a staggering 70 % of new‑vehicle sales, a jump that dwarfs the 30 % share of gasoline cars. This transition is propelled by a combination of government incentives, stricter emissions regulations, and a growing public consciousness about climate change. The Chinese Ministry of Industry and Information Technology announced a 2024‑2025 plan to increase EV sales to 75 % of all vehicle sales, a move that has left many manufacturers scrambling to re‑engineer or discontinue gasoline models.

The article highlights that many Chinese firms—particularly state‑backed giants like SAIC, Changan, and Geely—still maintain substantial production lines for gasoline cars. These plants were built in the 1990s and 2000s with the assumption that the global demand for conventional vehicles would remain steady. Now, faced with a domestic market that is rapidly de‑escalating its appetite for ICE vehicles, manufacturers are left with a surplus of units that simply cannot find buyers at home.

2. Exporting the “Leftovers”

With domestic demand shrinking, Chinese automakers are looking abroad for new markets. According to the article, between 2022 and 2023, Chinese exports of gasoline cars rose by 12 % to approximately 1.2 million units—an increase that eclipses the growth seen in EV exports. Export destinations are primarily Southeast Asia, Eastern Europe, Africa, and Latin America—regions where the EV infrastructure is still under development and consumers remain price‑sensitive.

The article explains how exporters have taken advantage of China’s vast supply chain to keep production costs low. By leveraging cheaper labor, local procurement of parts, and well‑established logistics networks, Chinese firms can ship gasoline cars at competitive prices. This strategy is also being supported by Chinese government initiatives that provide subsidies for exporters and reduce tariff barriers in partner countries.

3. Trade Policy and Tariff Pressures

However, the export boom does not occur in a vacuum. Global trade policy, especially the United States’ “Buy American” legislation and the European Union’s “Carbon Border Adjustment Mechanism,” is reshaping how Chinese vehicles can be sold abroad. The article cites a recent US Senate hearing where lawmakers expressed concerns about the environmental impact of imported gasoline cars. As a result, China’s gasoline cars are increasingly facing higher tariffs in the U.S. and EU markets, which dampens the price advantage of Chinese exports.

To mitigate this, Chinese automakers are turning to a mix of strategies: partnering with local firms that can re‑brand the vehicles, focusing on countries with more favorable trade terms, and, where possible, converting gasoline models to mild‑hybrid configurations to appeal to stricter emission standards.

4. Environmental and Economic Implications

Exporting gasoline cars to emerging markets raises a host of environmental questions. The article discusses how this practice contributes to global CO₂ emissions, particularly in regions where public transport is limited and gasoline is still the dominant fuel for private vehicles. NGOs such as Greenpeace have criticized the practice, arguing that it undermines global efforts to decarbonize the transport sector.

From an economic standpoint, the surplus of gasoline cars helps Chinese automakers maintain production volumes, thereby safeguarding employment in manufacturing hubs that might otherwise face layoffs. Yet this short‑term solution could potentially inflate prices in overseas markets, creating a new dependency on cheap Chinese vehicles that may hinder local automotive innovation.

5. Looking Forward: The Road to 2030

The article concludes by projecting what the next decade might hold. If China’s EV push continues unabated, the surplus of gasoline cars will likely shrink, forcing automakers to accelerate electrification efforts even in export markets. Moreover, global emissions targets and tightening regulations may eventually force countries to impose higher taxes on gasoline imports, reducing the attractiveness of Chinese gasoline exports.

Conversely, some analysts believe China will continue to find niche markets for its gasoline cars, particularly in low‑income regions where EVs remain prohibitively expensive. In such scenarios, China could become the world’s largest exporter of gasoline vehicles, a position that would have far-reaching implications for global trade, environment, and energy security.

In Summary

China’s automotive industry faces a paradoxical reality: while its domestic market is rapidly shifting toward electric vehicles, it still produces a massive quantity of gasoline cars that find no buyers at home. To offset this surplus, Chinese automakers are flooding international markets, especially in developing regions, with these conventional vehicles. The move is supported by China's strong manufacturing infrastructure and export incentives but faces challenges from global trade policies, environmental concerns, and future regulatory shifts. As the world grapples with the twin pressures of decarbonization and economic growth, China’s export strategy will play a pivotal role in shaping the future of global automotive markets.