Trump Tariffs Could Accelerate Chinese Car

Introduction Of Tariffs

Tariffs The number of Chinese-made cars on the roads in the Middle East and Africa (MEA) is set to surge dramatically over the next few years, according to a new report by global consulting firm AlixPartners. The firm projects China’s market share in the MEA automotive sector could more than triple—from just 10% in 2024 to a projected 34% by 2030. Tariffs

This growth is part of a broader global shift in the auto industry, driven by China’s rapid export expansion. In 2024, China exported 6.4 million passenger vehicles, marking a 23% year-over-year increase and placing it more than 50% ahead of Japan, the world’s second-largest exporter. Tariffs

“The Middle East and Africa are becoming key battlegrounds for Chinese automakers,” said Alessandro Missaglia, partner and managing director at AlixPartners. “Buyers are drawn to the competitive pricing and increasingly advanced tech in these vehicles.” Tariffs

Despite new tariffs imposed by the U.S. and other countries, the report finds the impact on China’s auto industry will be limited. While the tariffs could add roughly $46 billion to export costs, that figure represents just 3.8% of China’s total automotive production value. Tariffs

UAE Emerges as Beneficiary of Global Trade Shake-up

Industry experts suggest that the UAE and other Gulf markets could actually benefit from the fallout of new U.S. tariffs. As access to the American market tightens, global automakers—particularly those in China—may redirect inventory to more open markets like the UAE. Tariffs

“Due to tariff restrictions, millions of vehicles intended for the U.S. will need alternative destinations,” said Rahul Singh, managing director of the Car Rental Division at Dollar and Thrifty UAE. “That puts the UAE in a strong position to attract these displaced vehicles, especially from China.” It

Singh added that this shift could lead to more vehicle availability and potentially lower prices for consumers, particularly as competition heats up in the budget and mid-range segments.

Middle East Becoming a Strategic Hub for EVs and Smart Cars

Beyond affordability, Chinese automakers are also accelerating their push into next-gen tech, with electric vehicles (EVs) and intelligent-driving systems playing a key role. Nearly 60% of new vehicles sold in China last year included Level 2 Advanced Driver Assistance Systems (ADAS) or higher—compared to fewer than 40% in the U.S.

AlixPartners notes the Middle East’s growing appetite for innovation and sustainability makes it an ideal market for Chinese EVs and smart car technologies. This alignment is expected to deepen strategic partnerships and expand the footprint of Chinese automotive brands in the region.

Domestically, China’s car market is expected to continue growing, with sales forecast to rise 4% in 2025, reaching 26.8 million units. That demand is largely being driven by the rapid uptake of electric and intelligent vehicles—further strengthening the country’s position in the global automotive landscape.

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