Chinese Carmakers Expand Their Global Footprint Amid Intensifying EV Competition

Amid the fierce rivalry in China's electric vehicle sector, domestic automakers are extending their reach globally to tap into emerging markets and elevate their brand profiles. The Gulf Cooperation Council (GCC), especially nations like the United Arab Emirates and Saudi Arabia, has become a focal point for this expansion. Chinese brands are making significant strides in these regions, establishing flagship outlets and collaborating with local entities. By 2030, projections indicate that Chinese manufacturers could capture 34% of the Middle East and Africa automotive market, up from 10% in 2024.
In recent years, Chinese carmakers have significantly increased their market share within GCC countries. In 2023 alone, they accounted for 12% of all new car sales across the region, marking a substantial rise compared to six years prior when their presence was minimal. The Gulf states present an appealing opportunity due to their commitment to reducing carbon emissions, coupled with high consumer purchasing power and a growing interest in sustainable technologies. However, despite securing initial commercial success, Chinese EVs still face challenges in achieving deeper market integration and establishing long-term local roots.
The strategic ambitions of Gulf nations are evident as they seek collaborations aimed at fostering domestic electric vehicle capabilities aligned with broader industrial diversification objectives. For instance, Abu Dhabi's substantial financial commitment to Nio underscores this vision. Additionally, regional policies such as the UAE’s Electric Vehicles Policy and Saudi Arabia’s National Industrial Strategy aim to promote local EV production. Yet, some Chinese EV companies remain more focused on other areas like Latin America, where markets offer larger populations, advantageous trade structures, and incentives for localized assembly.
While Brazil and Mexico witnessed impressive year-on-year growth rates in their EV sectors in 2024—90% and 70%, respectively—EV adoption in most Gulf states remains below 3% of total new car sales. This disparity influences strategic priorities among Chinese EV firms, leading them to weigh the benefits of investing in different geographic regions carefully.
Gulf nations continue to pursue partnerships designed to enhance local EV manufacturing capacities, reflecting their dedication to sustainable mobility solutions. Meanwhile, Chinese automakers must navigate complex decisions about resource allocation and market focus as they strive to balance immediate commercial opportunities with long-term strategic commitments.