Gasgoo Munich-On the evening of November 8, the 2026 Overseas Chinese Automotive Engineers Global Connection event took place online. Gasgoo Automotive Research Institute participated as a strategic partner, joining experts and industry figures from Europe, North America, Japan, and China to discuss vehicle exports, solid-state batteries, and intelligent driving.
During the session, Chen Weiwei, a senior analyst at Gasgoo Automotive Research Institute, shared some telling figures: In the first three quarters of this year, Chinese passenger vehicle exports hit 7.16 million units — a surge of over 70% year-on-year. With domestic sales slipping nearly 30%, exporting has become a critical pillar for many automakers to sustain sales volume and production capacity.
Yet, beneath this rapid expansion, Chinese automakers are moving away from the old mindset that a single powertrain can conquer the world.
One Powertrain Can't Capture the Global Market
Over the past few years, Chinese electric vehicles made breakthroughs in Europe, dominating the conversation. But the actual export structure is far more complex than that single narrative suggests.
Data from the General Administration of Customs shows a fundamental shift in the powertrain mix of Chinese passenger vehicle exports. Internal combustion engine (ICE) vehicles have retreated from their once-dominant position to roughly one-third of the total, while EVs and hybrids have grown rapidly, bringing the three segments into balance. Hybrids, in particular, saw growth rates around 100% and 140% over the last two years respectively, emerging as a new growth engine.
However, these aggregate figures mask massive regional disparities. The reality of Chinese auto exports is that no single powertrain route dominates every market.
The differences become even sharper when broken down by region.
Europe offers a case study. Early on, Chinese EVs made inroads there and captured the spotlight. But the EU’s imposition of anti-subsidy tariffs in 2023 disrupted that high-speed momentum. Following a strategic adjustment, plug-in hybrids (PHEVs) became the new main force for Chinese exports to Europe starting in 2024. Chery and BYD are leading with PHEVs, while SAIC is relying on HEVs to hold its ground in the region.
Image Source: 2026 Overseas Chinese Automotive Engineers Global Connection Event
Central and South America present a different picture. Brazil, the region's largest core market, initially offered zero-tariff incentives for new energy vehicles, fueling rapid EV growth. Although Brazil’s tariff preferences are phasing out, new policies this year opened a loophole for KD (knock-down) export modes, keeping pure EV export growth robust.
In Latin America, Chinese automakers are running a dual-track strategy of new energy and ICE vehicles. BYD is capturing share with small EVs like the Seagull, while Chery is holding its base with ICE vehicles and flexible-fuel compatibility.
Image Source: 2026 Overseas Chinese Automotive Engineers Global Connection Event
Southeast Asia has seen the most thorough powertrain transition. When Chinese automakers entered the region in 2020 and 2021, ICE models were the dominant force. But as Thailand, Indonesia, and Malaysia rolled out EV support policies, pure electric exports accelerated. The entire region has now completed a generational shift in its powertrain structure.
In detail: Geely is using Proton’s local channels to sell rebadged versions of its small car, the Star Wish; Chery launched the Jetour J5EV, a model developed specifically for overseas markets; BYD built a production base in Thailand, relying on locally made models like the Atto 3 (Yuan PLUS) as its main force; and SAIC has achieved solid sales in Indonesia with the Wuling Cloud EV.
Image Source: 2026 Overseas Chinese Automotive Engineers Global Connection Event
The Middle East and CIS regions remain traditional strongholds for ICE vehicles, driven by low fuel prices and local driving habits like dune bashing. However, PHEVs have found a breakthrough in high-end markets like the UAE, where local white-collar consumers are drawn to their intelligent tech features and parking air conditioning capabilities.
Four Paths, Four Strategies
The regional divergence in powertrain choices reflects a broader split in how automakers are approaching their global expansion.
This year’s export growth is heavily concentrated among the top four players: Chery, BYD, Geely, and SAIC. Together, they contributed two-thirds of the annual increase. Yet, their paths abroad are distinct. Chery is pursuing a strategy of diversification and flexible penetration.
Chery has established light-asset KD assembly plants or joint ventures across various regions, going wherever the market is with minimal investment for rapid rollout. Its strength lies in a comprehensive product lineup spanning ICE, hybrids, and EVs, allowing for flexible product combinations tailored to different regions.
BYD is taking the heavy-asset, focused investment route. It is concentrating resources on three major growth poles — Brazil, Europe, and Southeast Asia — building factories and localizing production to leverage the cost advantages of its vertical integration.
Geely is leveraging capital integration. Through mergers, equity stakes, and partial acquisitions, it is consolidating existing mature factories and capacity overseas. By acquiring Proton and taking a stake in Volvo, Geely uses capital maneuvers to unlock overseas channels, then covers different markets through multi-brand synergy.
Leapmotor is taking the lightest route. It is tapping Stellantis’s existing channels and factories to achieve rapid global penetration. Leapmotor doesn’t need to build its own overseas system; instead, it hitches a ride on others' ships, trading product strength for channel resources.
Image Source: 2026 Overseas Chinese Automotive Engineers Global Connection Event
There is no absolute advantage or disadvantage to these four paths; the key is matching them to the company's own resource endowment. Large-scale enterprises with strong cost control can pursue the heavy-asset route; those with limited channels but distinctive products can choose to "hitch a ride"; and those with full product lines and strong adaptability can take the diversified penetration route.
It is worth noting that joint ventures and foreign automakers are also utilizing Chinese production capacity for exports.
Tesla uses its Shanghai plant as a global hub for the Asia-Pacific. Similarly, Jiangsu Hyundai Kia, Dongfeng Honda, and Changan Ford have transformed their domestic factories into export bases, using China's cost advantages to enter markets they previously couldn't penetrate.
Chen Weiwei forecasts that Chinese passenger vehicle exports will reach 10 million units this year and climb to 13 million by 2030. Growth rates will taper, but the structure will upgrade. New energy vehicles are set to become the core driver for the next phase of scale expansion.
The era of succeeding in exports simply through price competitiveness and trading channels is over. Moving forward, automakers will need to customize products for regional demands, establish local production and supply chains, and navigate policy risks in individual markets. These factors will determine the competitive landscape of the next round of global expansion.
