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China's Quiet Gas-Car Flood: Exporting Surplus Combustion Engines Worldwide

  //automotive-transportation.news-articles.net/co .. orting-surplus-combustion-engines-worldwide.html
  Published in Automotive and Transportation on Tuesday, December 2nd 2025 at 5:43 GMT by reuters.com

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China’s Quiet Flood of Gas‑Powered Cars: What the World Is Importing

In a striking revelation that underscores China’s paradoxical position as both the world’s biggest electric‑vehicle (EV) producer and a silent supplier of gasoline cars, a Reuters investigation published on December 2 , 2025 documents how the country is sending more and more combustion‑engine vehicles overseas after domestic demand for them has plummeted. The report shows that China’s auto industry is now a “flood” of gasoline‑powered cars that can no longer find a market at home and are instead being shipped to countries where emissions regulations are weaker, fuel is cheap and new‑car demand remains high.

1. The Shifting Landscape of China’s Auto Market

For the past decade, China’s central government has relentlessly pushed the nation toward a cleaner transport sector. Subsidies for EVs, mandatory vehicle‑type quotas, and the gradual removal of subsidies for internal‑combustion vehicles have nudged the country toward a 40 % EV share by 2025—well above the global average. The result is a sharp decline in domestic demand for gasoline cars: sales of internal‑combustion cars fell from roughly 4.6 million in 2019 to 2.9 million in 2024, according to state‑run statistical agency data cited in the article.

In the face of this contraction, Chinese automakers that historically focused on affordable gasoline cars—brands such as Chery, GAC, and SAIC’s more traditional sub‑brands—have found themselves with surplus production capacity. Faced with idle factories and a workforce that must be paid, the companies have turned to export as the most viable outlet for their product lines.

2. Export Numbers and Destinations

The Reuters investigation provides the most comprehensive data yet on this “gas‑car export boom.” In 2024, Chinese automakers shipped roughly 1.2 million gasoline vehicles to the global market—a 30 % increase over the prior year. The bulk of these vehicles are directed toward Latin America, Africa, the Middle East, and Southeast Asia, where price sensitivity and limited local manufacturing capacity create a niche for low‑cost imports.

• Latin America: Mexico, Brazil, and Chile are the top recipients, with Mexico alone importing 300,000 units in 2024. The vehicles often come with aftermarket modifications that increase their power output to meet local consumer preferences.

• Africa: Countries such as Egypt, Nigeria, and Tanzania have seen a surge in imports, largely because they lack the infrastructure for large‑scale domestic production. In 2024, 180,000 units arrived in the region.

• Middle East: Saudi Arabia and the United Arab Emirates received about 90,000 units, primarily because the high availability of fuel and the lack of domestic EV incentives make gasoline cars still attractive to many buyers.

• Southeast Asia: Indonesia and Vietnam have become new hotspots for Chinese gasoline cars, as the two countries continue to lag in EV adoption.

The report notes that the average price of these imported vehicles is 20 % lower than comparable domestic models in the destination markets, a price gap that has made them highly competitive against local and imported competitors.

3. The Role of Chinese Manufacturing and Supply Chain

The investigation also delves into how Chinese manufacturers use their global supply chain to keep costs low. Chinese automakers typically source the majority of their components—especially engines, transmissions, and batteries—from domestic suppliers that have benefited from years of scale. Even when exporting, these parts remain cheap because of the same economies of scale that have allowed the industry to thrive. This advantage has allowed Chinese exporters to maintain tight margins, which is crucial for staying competitive against both local producers and larger global players.

Moreover, the article links to a Reuters analysis of the “China automotive export boom” that discusses how Chinese suppliers are increasingly selling parts and finished vehicles in bulk to smaller firms in emerging markets. This arrangement often results in a “rebadged” model—where a vehicle manufactured in China is sold under a different brand name, sometimes without the original Chinese company’s direct involvement.

4. Environmental and Regulatory Implications

One of the most striking aspects of the investigation is its focus on the environmental consequences of this export wave. While China is a champion of its domestic EV ambitions, the flood of gasoline cars destined for countries with lax emissions regulations could undermine global climate goals. The article cites a study from the International Energy Agency (IEA) that projects an increase of 12 million tons of CO₂ emissions globally by 2030 if China’s gasoline‑car exports continue at the current rate.

The investigation also references an interview with an environmental policy analyst from the World Resources Institute, who argues that the “export‑driven” nature of China’s gasoline‑car industry creates a perverse incentive: local Chinese firms are motivated to continue producing gasoline vehicles to keep factories operational, thereby perpetuating a cycle that feeds into developing markets.

Regulatory concerns are not limited to emissions. Several destination countries have begun to tighten safety standards for imported vehicles. Reuters notes that in 2024, the European Union launched a new safety inspection protocol for imported cars, which could pose a barrier for Chinese exporters unless they retrofit models with advanced safety features.

5. Corporate Strategies and Future Outlook

Chinese automakers have adopted a number of strategies to adapt to this new export focus. Some companies, like GAC, have invested in a “global branding” strategy, re‑engineering their vehicles to meet the safety and emissions standards of target markets. Others, such as Chery, have focused on “low‑cost, high‑volume” exports, leveraging their large production lines to keep prices low.

The Reuters investigation links to an exclusive interview with a senior executive from Chery, who acknowledges the challenge: “We cannot keep producing gasoline cars for a market that is moving away from them,” he said. “Exporting is a strategic choice that allows us to maintain our workforce and keep our factories running while we re‑orient toward electric models.”

In terms of future outlook, the article cites industry analysts who predict that Chinese gasoline car exports could plateau by 2028 if global EV adoption accelerates faster than expected. Conversely, a slowdown in global fuel prices could sustain or even increase export volumes, as the price advantage of Chinese vehicles becomes more pronounced.

6. Conclusion

Reuters’ investigative piece provides a sobering glimpse into the unintended consequences of China’s aggressive push toward electric vehicles. As the country’s internal combustion engine market shrinks, a flood of gasoline cars is finding its way to the world, filling a niche in developing markets where price sensitivity and weak emissions enforcement prevail. This dynamic raises critical questions about global climate policy, supply chain ethics, and the future trajectory of the automotive industry.

While China continues to invest heavily in EV technology—reporting a projected EV production capacity of 45 million units by 2030—the parallel export of gasoline cars underscores the complexity of transitioning to a sustainable future. The world will be watching closely to see whether China’s export strategy adapts in tandem with its domestic ambitions or whether the global automotive market will see a continued surge of cheap, combustion‑engine vehicles that may undermine the very environmental gains China has promised to achieve.