The rapid rise of Chinese automakers in Europe increases the pressure on the continent’s well-established brands. According to Dataforce data, the market share of Chinese brands has approximately tripled compared to 2024. Approximately 780 thousand Chinese cars were registered in Europe in the first seven months of the year. This number is almost equal to the sales figure for the entire year 2025. While Chinese manufacturers initially grew in Southern and Eastern Europe and the UK, they have now turned their eyes to the continent’s largest market, Germany.
COUP TO STELLANTIS
The manufacturer most affected by the new competition was Stellantis. While the market share of the group, which includes brands such as Opel, Peugeot, Fiat and Citroen, in Europe approached 21 percent in 2021, it decreased to 15.5 percent today. Ford’s share decreased from 4.6 percent to 3 percent, and the share of the Volkswagen main brand decreased from 10.7 percent to 9.9 percent. Nissan, Mazda, Hyundai and Kia were also among the manufacturers that lost markets against Chinese brands.
SHARE IN ELECTRIC IS 12.6 PERCENT
The area where Chinese manufacturers are strongest is electric cars. China’s share in the electric vehicle market in Europe was 2.1 percent in 2021. Today, this rate has reached 12.6 percent. In the same period, Volkswagen’s share in the electric car market decreased from approximately 14 percent to less than 8 percent, while Stellantis’ share fell from over 14 percent to around 10 percent. 19 Chinese manufacturers operate in Europe, but only five brands account for 83 percent of sales. By the end of July, BYD reached 217 thousand new vehicle registrations and a market share of 2.4 percent. Thus, it surpassed Volvo’s sales of 202 thousand units, Nissan’s 183 thousand units and Tesla’s 178 thousand units. MG was right behind BYD with 211 thousand vehicles.
16 PERCENT IN ENGLAND
However, the rise of Chinese brands does not progress at the same pace in every region of Europe. The market share of Chinese cars has increased to 11.4 percent in Spain, Portugal, Italy and Greece. In Eastern Europe, this rate is 9.5 percent and in Northern Europe it is 7.3 percent. The strongest major market is the UK. While the share of Chinese brands here approaches 16 percent, approximately a quarter of Chinese vehicle registrations in Europe take place in the UK.
CHINA TURNED TOWARDS EUROPE
The reason why Chinese manufacturers are focusing more on Europe is also due to the harsh price war in their domestic market. China’s passenger car exports increased by 78 percent in August compared to the same month last year, reaching 894 thousand. According to experts, the fact that Chinese manufacturers can sell their vehicles in Europe at twice the prices in the domestic market also makes the continent more attractive.
HYBRID ATTACK HAS STARTED
The additional customs duties imposed by the European Union on Chinese-made electric cars also changed the strategies of companies. This time, Chinese manufacturers focused on hybrid models. In 2021, 15 percent of vehicle registrations originating from China were hybrid cars. Today, this rate has increased to 53 percent. BYD surpassed Volkswagen in plug-in hybrid vehicle registrations in Europe this year.
TARGET 20 PERCENT
The real debate in the industry is how much Chinese brands can grow in the next few years. UBS analysts predict that Chinese manufacturers’ total market share in Europe could reach 20 percent by the end of the decade. European manufacturers are also trying to respond to this pressure with cheaper electric models. While Renault sells the electric Twingo for under 20 thousand euros, Volkswagen is preparing to launch the ID.1 model at a similar price level in 2027.
