Chinese car manufacturers secured 7.4% of Europe’s passenger-car sales

In September, Chinese car brands hit their strongest sales yet in Europe as interest in EVs and hybrids surged. Data from researcher Dataforce shows that BYD, MG, and Chery helped Chinese brands secure 7.4% of Europe’s passenger-car sales, their largest share yet, surpassing South Korean automakers such as Kia.

September’s surge builds on months of consistent momentum. According to Dataforce analyst Benjamin Kibies, the strong performance suggests that broader changes are still to come. He noted, “We see a constant increase in Chinese brands’ penetration of the European markets.”

UK consumers bought more Chinese cars than in any other European country

UK consumers have particularly taken up Chinese car brands. Almost 50% of all Chinese cars sold in Europe in September were sold in the UK. The country’s twice-yearly license-plate changeover helped propel sales. Additionally, at just 10%, UK import taxes remain significantly lower than the European Union’s tax on Chinese electric vehicles. 

Speaking on China’s market presence, Kibies remarked, “The British market is key. The Chinese are very strong in the UK.” So far, in the UK, BYD’s sales have risen sixfold month-on-month, closely trailed by MG. Chery also made headway with its Omoda and Jaecoo hybrid SUVs. 

The foothold Chinese automakers have gained in Europe, however, points to a deepening divide in the car market, fueled by their cost-efficient battery production.

Europe is still scrambling to contain the fallout, and the EU’s duties only briefly pause the rise of Chinese automakers. Currently, European automakers are being drawn into a new trade dispute centered on a Dutch chip supplier, following Beijing’s restrictions on certain exports, which could derail their business.

Plug-in hybrid sales surged by 62% in greater Europe 

Chinese brands haven’t yet captured a significant share in Europe, but they’re betting on plug-in hybrids to bridge the gap, as they’re cheaper to run and less dependent on charging infrastructure.

According to the European Automobile Manufacturers’ Association, plug-in hybrid sales increased by 62% in greater Europe last month, while conventional hybrid sales rose by 15%. Dataforce shows Chinese brands captured 20% of Europe’s plug-in hybrid segment in September, a jump of over seven percentage points from the previous month.

Kibies added that the EV market share of Chinese automakers advanced 1.7 percentage points to 11% in September, or 13% once Leapmotor and Ebro-Chery’s joint sales are included.

Not to mention, less than two and a half years after debuting in the UK, BYD has already expanded to 100 franchised outlets nationwide. 

Stephen Reitman, analyst at Bernstein, commented on the Chinese brand, “They’re paying to play — making very attractive offers to dealers to take on the brands. The dealers like the value in the offer, and the customers are impressed by the product — there’s a certain amount of shock and awe in the dealership.”

On the same line of events, Cryptopolitan has recently reported that investors and industry experts have warned that the US may lose further ground to China in its battle for EV dominance after the Trump administration’s bullish stance on petrol engine vehicles caused a significant drop in EV investment.

Since taking the keys to the White House in January, the US president has pulled tax incentives for consumers to buy EVs and suggested scrapping rules on greenhouse gas emissions in a departure from the backing the Biden administration gave the industry.

Investment in projects related to electric vehicles, including batteries, vehicle assembly, and charging equipment, fell by almost a third to $8.1 billion in the three months to September compared with the same period a year earlier, according to the US Clean Investment Monitor, a database created by Rhodium Group and the Massachusetts Institute of Technology.

Between April and September, approximately $7 billion of planned EV investments were scrapped, the data showed. According to executives and analysts, the withdrawal of support in the US had the potential to shape the industry in the coming years, strengthening China’s hand in the EV race and raising doubts in the EU over its ban on sales of internal combustion engines from 2035.

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