Chinese automakers make huge waves in Europe
Plug-in hybrid sales post strongest growth, though EU tariffs may temper imports
Chinese electric vehicle (EV) manufacturers are disrupting Europe's automotive landscape.
In August, EV giant BYD sold three times as many new cars in the European Union (EU) than in August 2024, surpassing Tesla for the second consecutive month, data from European auto lobby ACEA (European Automobiles Manufacturers' Association) shows.
It noted that hybrid-electric vehicles continue to be the most popular powertrain, capturing 34.7% of the market by July 2025, while battery-electric vehicle (BEV) sales increased significantly.
Key trends (January to July/August 2025)
Overall Market:
New car registrations in the EU fell by 0.7% for the first seven months of 2025, though August 2025 showed a positive year-on-year increase.
Electrified Vehicles:
Hybrids: Hybrid-electric cars are the preferred power type, accounting for 34.7% of the market by July 2025.
Battery-Electric Vehicles (BEVs): BEV registrations increased by 15.6% by July 2025, marking the biggest rise since August 2024.
Plug-in Hybrids (PHEVs): Plug-in hybrid sales recorded their strongest growth since January 2023.
Powertrain Shift:
The market share of petrol and diesel cars fell to 37.7% in July 2025, down from 47.9% in July 2024, ACEA noted.
Electric cars:
In the first eight months of 2025, 1,132,603 new battery-electric cars were registered, capturing 15.8% of the EU market share. Three of the four largest markets in the EU, accounting for 62% of battery-electric car registrations saw gains: Germany (+39.2%), Belgium (+14.4%), and the Netherlands (+5.1%). This contrasted with France, which saw a decline of 2%, despite a positive 29.3% YOY gain in August 2025.
August 2025 YTD’s figures also showed new EU hybrid-electric car registrations rising to 2,485,069 units, driven by growth in the four biggest markets: France (+30.5%), Spain (+29.3%), Germany (+10.1%), and Italy (+9.4%). Hybrid-electric models account for 34.7% of the total EU market.
Registrations of plug-in-hybrid electric cars continue to grow, reaching 631,783 units in the same period.
This was driven by increases in volume for key markets such as Spain (+99.9%) and Germany (+61.2%), but also Italy (+62.6%). As a result, plug-in-hybrid electric cars now represent 8.8% of EU car registrations, up from 6.9%.
Overall, European new car sales saw a decline of 0.7% in the first seven months of 2025, with a 5.0% increase in August 2025 compared to August 2024, bringing the total registrations to over 790,000 for the month.
Competing on cost, tech
Chinese EV makers are capitalising on affordable pricing, advanced battery technology, and rapid model launches to challenge entrenched players like Volkswagen and Tesla.
Despite a sluggish overall EV market in Europe — Chinese brands surged ahead, capturing a record 11% share of the EV segment by mid-2025.
This momentum stems from a pre-tariff rush, as the European Union imposed duties up to 38% on Chinese imports in July 2024 to protect local industries.
Yet, with over 43,500 units registered in August 2025 alone — a 121% year-on-year jump — Chinese firms are proving resilient, blending BEVs and plug-in hybrids (PHEVs) to appeal to cost-conscious buyers.
January-August sales
From January to August 2025, Chinese EV makers registered approximately 350,000 vehicles across Europe-28, a staggering 150% increase from the prior year, driven by PHEV growth (up 546% in early 2025).
This figure outpaced several legacy European brands, underscoring the "huge waves" of incursion.
The top 10 performers, based on JATO Dynamics and Dataforce data, highlight this dominance:
| Rank | Brand (Parent) | Sales (Jan-Aug 2025) | YoY Growth | Key Models |
|---|---|---|---|---|
| 1 | MG (SAIC) | 128,000 | 85% | MG4, ZS EV, MG3 Hybrid |
| 2 | BYD | 92,000 | 280% | Atto 3, Seal, Dolphin Surf |
| 3 | Volvo (Geely) | 68,000 | 45% | EX30, XC40 Recharge |
| 4 | Omoda (Chery) | 35,000 | 320% | Omoda 5 EV/PHEV |
| 5 | XPeng | 32,000 | 250% | G6, P7 |
| 6 | Jaecoo (Chery) | 28,000 | New entry | Jaecoo 7 PHEV |
| 7 | Leapmotor | 22,000 | 400% | T03, C10 |
| 8 | Smart (Geely) | 18,000 | 60% | #1, #3 |
| 9 | Polestar (Geely) | 15,000 | 20% | 2, 4 |
| 10 | Nio | 12,000 | 150% | ET5, EL6 |
MG led with its budget-friendly offerings, outselling rivals in June 2025 despite the highest tariffs. BYD, overtaking Tesla in April with a 169% sales spike, leveraged PHEVs like the Seal U to climb PHEV rankings.
Geely's Volvo EX30, produced in China, benefited from premium branding, while XPeng and Omoda's sleek designs targeted urban millennials.
Road ahead
Looking ahead, the road is paved with opportunities and obstacles.
EU tariffs may temper imports, but Chinese firms are countering with local production: BYD's Hungarian plant opens in 2026, potentially dodging duties and adding 150,000 units annually.
Battery costs have fallen 20% since 2024, enabling sub-€25,000 models that undercut European competitors.
Yet, challenges loom — consumer skepticism over data privacy, charging infrastructure gaps (needing 5,000 weekly additions), and geopolitical tensions, including US tariff threats under Trump, could ripple across the Atlantic.
Analysts forecast Chinese EVs hitting 15% market share by 2027, fuelled by Southeast Asian supply chains and EU green mandates. If Europe accelerates incentives, this wave could evolve into a tsunami, reshaping the continent's mobility future.
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