China’s growing dominance in the global auto market isn’t just about electric vehicles. It’s being fuelled even more by a surge in gasoline-powered car exports.

A Reuters investigation shows that despite the world’s attention on China’s EV push, internal combustion engine (ICE) cars are quietly driving its export boom. Since 2020, nearly 76% of China’s auto exports have been ICE vehicles. Annual shipments have jumped from 1 million to an estimated 6.5 million this year.

These cars are finding strong demand in emerging markets across Eastern Europe, Latin America and Africa. In these regions, EV adoption is slow and charging networks are limited. Mexico has become China’s biggest destination for these gasoline models.

State-supported automakers that lost market share at home — including Chery, SAIC, Changan and Geely — are expanding abroad with aggressive pricing and government backing. For example, SAIC’s exports have crossed 1 million units. Dongfeng has nearly quadrupled its export volumes over five years, even as its overall global sales have fallen.

Chinese automakers see this as a long-term play. As China doubles down on EV leadership at home, its ICE vehicles are giving it a powerful edge overseas. They are helping build global recognition and reshape competition with traditional automakers.

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