CNBC examined the sales of ten of the world’s leading car brands. Its analysis shows that Nissan’s sales could be the worst since 2009, as well as Hyundai’s sales. Toyota sales should be the lowest since 2020.

The decline in sales of Western automakers comes at a time when China is rapidly shifting from internal combustion engines to electric cars and hybrids. This change increases the sales of Tesla and domestic brands such as BYD.

China is the largest car market in the world. Electric and hybrid cars already account for more than a third of the total sales of passenger cars this year, according to the China Passenger Car Association CPCA. And in November, according to the association’s data, sales should increase by 20 percent year-on-year.

Volkswagen, with approximately three million cars sold annually, remains a giant in the Chinese car market, but has not yet made much headway in electric cars. In July, it decided to invest about USD 700 million (CZK 15.8 billion) in Chinese electric car startup Xpeng to jointly develop two cars for China.

However, BYD is quickly catching up with the European giant. Last year, the company sold more than one million cars for the first time and is on track to sell 2.5 million cars this year.

The popularity of foreign brands among Chinese consumers is declining. License plate restrictions in big cities like Beijing are motivating locals to buy electric cars instead of traditional combustion engine cars. A Bernstein survey of Chinese consumers found BYD to be the top brand EV buyers would consider. In second place was Tesla, followed by Nio.

Although China’s electric car market is growing, competition is fierce even for domestic brands. They are trying to establish themselves abroad as well. According to Moody’s August analysis, China is on track to become the world’s largest exporter of cars this year, overtaking Japan and Germany.

The fact that the European Union has launched an investigation into Chinese electric car manufacturers to see if they are using unauthorized state subsidies is an example of how big a force Chinese car companies are becoming abroad.