How China's Automotive Industry is Conquering the World and Where it is Still Being Resisted

The Chinese automotive industry has transformed from a local phenomenon into a global player in just a few years, but the degree of its influence varies greatly from country to country. Russia, in this sense, is almost a unique example. In the third quarter, 37% of new passenger cars were imported directly from China, including cars of global brands, and the share of Chinese brands themselves reached 55%. Despite the increase in the recycling fee, the positions of manufacturers from the PRC are only strengthening: Chery with its subsidiaries is already approaching Lada in sales, Geely and Haval are breathing down its neck, and in monetary terms, the domestic brand is significantly inferior.

Against the backdrop of the Russian market, it is especially interesting to see how Chinese companies feel at home. In recent years, China has developed surplus capacity for the production of electric vehicles, which has provoked fierce price wars. Startups that actively invested borrowed funds in development faced financial difficulties, and even market leaders came under pressure. BYD, which has long focused exclusively on electric vehicles and hybrids, reduced sales by almost 10% in January-November 2025, and in November the decline reached 35%.

At the same time, brands well-known to Russians look more stable. Chery and Haval remain in the top twenty in sales, focusing primarily on cars with internal combustion engines. Geely, which displaced Volkswagen from second place, receives significant revenue from gasoline models such as Atlas and Monjaro, although the main driver of volume was the cheap electric hatchback Geome Xingyuan. Domestic production in China continues to grow, and the gap between production and demand is pushing companies to export: in the 11 months of 2025, exports of electric vehicles and hybrids grew by 139%, while deliveries of cars with internal combustion engines decreased.

The Chinese mainly enter foreign markets through the "battery front." A key role here is played by CATL, the largest battery manufacturer, which supplies elements for Mercedes-Benz, BMW, Audi, Volkswagen and other global brands. The company is actively investing in factories outside of China and developing technologies, including sodium-ion batteries. At the same time, automakers from the PRC are looking for partnerships: Stellantis invested 1.5 billion euros in Leapmotor, gaining access to technologies and exclusive rights to promote the brand outside of China.

The situation in Europe is mixed. So far, only two groups have achieved real large-scale success: SAIC with the MG brand and BYD. In the ten months of 2025, MG sold about 250 thousand cars, BYD - almost 139 thousand, which is comparable to the performance of Volvo, Nissan and Suzuki. Leapmotor is actively expanding its presence through the Stellantis dealer network, but remains outside the top positions for now. At the same time, the EU's imposed duties on Chinese cars proved to be ineffective: even with tariffs of up to 35%, brands from the PRC continue to increase their share.

North America remains practically closed. The United States has prohibitive duties on cars and batteries from China, and technical regulations make certification of electric vehicles from the PRC almost impossible. In addition, federal subsidies for the purchase of electric vehicles have been canceled, and requirements for average fuel consumption have been relaxed in favor of cars with internal combustion engines. In Mexico, the Chinese, primarily MG, have achieved some success, but the introduction of a 50 percent duty could drastically change the situation.

In other regions, the position of the Chinese automotive industry depends on local conditions. In India and Japan, growth is limited by protectionism and loyalty to local brands. In Australia and Brazil, the Chinese have already occupied significant shares, and BYD is actively investing in local production. In Southeast Asian countries such as Thailand, Malaysia and Indonesia, brands from the PRC are growing rapidly, but are not yet able to shake the dominance of Toyota and other Japanese brands.

The result looks unambiguous: in the large markets of developed countries, the Chinese automotive industry has not yet become an unconditional leader and faces barriers - tariff, technical and reputational. Russia stands out against this background as a market where Chinese brands have gained almost unimpeded access and have actually formed a new reality. That is why our dependence on the PRC turned out to be much deeper than anywhere else.

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