Chinese automakers sold nearly one in every ten new passenger cars in Europe last month, marking a record and closing a year of rapid gains powered by electric and hybrid vehicles.
Data from researcher Dataforce shows Chinese brands captured 9.5% of Europe’s total car market in December, overtaking South Korean rivals on a quarterly basis for the first time. Their grip was even stronger in electrified vehicles, where Chinese companies took 16% of sales, more than double their share from a year earlier.
EV Growth Driven by Battery Technology
The surge has been strongest in southern Europe, where buyers are more flexible about brand loyalty. Analysts say Chinese automakers are winning customers with competitive prices and advanced battery technology, especially in plug-in hybrids.
BYD, MG-maker SAIC Motor, Chery and Leapmotor all posted strong gains. BYD alone sold more than 186,000 vehicles in Europe in 2025, nearly four times its 2024 total.
Pressure Builds on Europe’s Auto Industry
Europe’s car sector employs more than 13 million people and accounts for over 7% of EU economic output. Industry leaders warn the rapid rise of Chinese brands is adding strain to a sector already hit by job losses and weaker demand abroad.
Trade unions and executives have called for stronger policy action. The EU imposed electric vehicle tariffs on Chinese-made EVs in late 2024, but sales continued to rise as automakers leaned into plug-in hybrids.
Germany’s plan to open €3 billion in European EV subsidies to Chinese manufacturers has sparked criticism from labour groups, who argue public money should protect local jobs.
Lower Prices Win Over Buyers
Consumers facing higher living costs appear less focused on where a car is made. BYD’s Seal U plug-in hybrid starts at £33,340 in the U.K., far below comparable European models.
Chinese brands are also investing locally. BYD plans factories and design centers in Europe, while Stellantis will build Leapmotor cars in Spain and Chery plans EV production in Barcelona.
Analysts say the shift could force weaker brands out. With overall sales still below pre-pandemic levels, every gain by Chinese automakers makes survival harder for rivals.
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