EV Market Evolves Towards Chinese Monopoly

Western automakers face steep losses as Chinese brands dominate the electric vehicle market

Published on Feb. 7, 2026

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The electric vehicle (EV) revolution is hitting a wall for Western automakers, with major players like Stellantis, Ford, and General Motors booking billions in losses as they scale back EV ambitions amid waning demand. In contrast, China's EV market is thriving, with brands like BYD and Xiaomi dominating sales and exports. This shift raises national security concerns as Western dependence on Chinese technology grows.

Why it matters

The rise of Chinese EV dominance poses a threat to Western automakers and economies, as job losses and factory closures loom. It also raises national security risks as the U.S. and Europe become reliant on Chinese batteries, software, and other critical EV components.

The details

Western automakers have collectively taken over $53 billion in charges related to scaling back EV production and pivoting to hybrids amid waning demand. This is due to high costs, range anxiety, and the end of federal EV incentives. In contrast, China's EV market share reached 48% in 2025, with brands like BYD and Xiaomi exporting aggressively. Chinese EVs enjoy a 30% cost advantage over Western rivals due to cheap batteries and labor.

  • In late 2025, Ford took a $19.5 billion hit as it rationalized EV assets and pivoted to hybrids.
  • In Q4 2025, General Motors booked around $12 billion in charges, including a $7.6 billion loss, after pulling back on EV production.
  • In 2025, EV sales growth stalled in the U.S., hampered by high costs, range anxiety, and the end of federal incentives under the Trump administration.

The players

Stellantis

A global automaker formed by the merger of Fiat Chrysler Automobiles and Peugeot S.A., which announced a staggering $26 billion writedown tied to scaling back EV ambitions.

BYD

A Chinese automaker that has surpassed Tesla as the world's largest EV manufacturer.

Xiaomi

A Chinese technology company that has entered the EV market and is exporting aggressively to Europe, the Middle East, and Latin America.

Mark Carney

The Prime Minister of Canada, who is welcoming annual imports of 49,000 Chinese EVs through 2030 while lowering import tariffs on Chinese goods and reinstating expired EV subsidies.

David Blackmon

An energy writer and consultant based in Texas who spent 40 years in the oil and gas business, specializing in public policy and communications.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The rise of Chinese dominance in the EV market poses a significant threat to Western automakers and economies, as job losses and factory closures loom. It also raises national security concerns as the U.S. and Europe become increasingly reliant on Chinese technology and components. Policymakers will need to carefully navigate this shifting landscape to protect domestic industries and ensure energy security.