China auto industry relies on 2 players: Alibaba & ByteDance/Volcano Engine Former is the cloud service of choice for Chinese automaker in production, sales & work + going overseas. They have 43% shares in 2026H1. Latter is the Cockpit service of choice for automakers. Doubao is the app of choice of Chinese consumers & it has become the AI of choice for Chinese cars. Volcano Engine won 45% of China mkt in 2026H1. They lead Alibaba Qwen, who is a close #2#.

CHINA AUTO SALES DROP 24% AS EXPORTS SURGE 78% China’s auto retail sales fell 24% to 1.54M vehicles last month, with YTD sales down more than 20%. At the same time, exports jumped 78% to 888K vehicles and now account for 38% of total sales, up from roughly 20% a year ago. That export shift is becoming increasingly important as China’s domestic price war squeezes profitability. Auto-industry margins fell to just 3.6% in the first seven months of the year, versus 6.5% across China’s broader downstream industrial sector. BYD raised its 2026 overseas-sales target to as much as 2M vehicles and exported more than 184K new-energy vehicles in August. Tesla $TSLA shipped roughly 86K EVs from its Shanghai factory, with about 36K going overseas.

The auto industry helped build our middle-class & was essential in our war fighting efforts. Now China is using automobiles as a weapon to infiltrate America, destroy our manufacturing base, & spy on us. We will hermetically seal the US from Chinese predators once & for all.

China’s Auto Industry is coming for Europe & this is just the beginning. Look at the numbers: BYD grew 134.6% year-on-year in Europe in Jan–Sep 2026. Chery surged 255.9%. Leapmotor jumped 424.2%. These aren’t just impressive growth rates, they’re signals of a structural shift. Chinese automakers are no longer competing on price alone. They’re combining battery technology, software, manufacturing scale and increasingly competitive design to challenge incumbents on their own turf. What happens next? Over the next 3–5 years, I expect Chinese brands to capture a significantly larger share of Europe’s new-car market, driven by local manufacturing, expanding dealer networks and broader hybrid and EV offerings. But the road won’t be easy. Tariffs, regulation, brand trust and after-sales support will determine who survives the next phase. The bigger risk for European automakers isn’t that Chinese cars are cheaper today. It’s that Chinese companies may innovate faster while operating with a fundamentally different cost structure. Europe’s automotive giants built this industry over a century. The next decade could redefine it. The question isn’t whether Chinese automakers will gain ground in Europe. It’s how quickly and who will adapt fast enough to survive.