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Chinese Automakers Make More EU Inroads

First-half sales hit record as U.S., European OEMs lose market share.

August 5, 2025
Chinese Automakers Make More EU Inroads

New-vehicle registrations in Europe were flat during the first six months of 2025 at 6.8 million units.

Credit:

Pexels/Ashley Fontana

2 min to read


Chinese automakers gained market share in Europe in the first half of the year as the continent’s overall new-vehicle market contracted.

The group of brands nearly doubled market share year-over-year to a record 5%, according to a report by London-based auto data provider Jato Dynamics.

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Overall new-vehicle registrations in Europe were flat during the period at 6.8 million units. When compared to prepandemic sales volume, the European market is down by about 1.6 million units for the period, the company reported.

“Persistently high prices, geopolitical and economic tensions with Europe’s trading partners, and the post-pandemic market reality are behind the decline,” said Jato Global Analyst Felipe Munoz. “Western Europe has lost the equivalent of more than 2.5 million units of annual sales since 2019.”

Chinese automakers’ sales volume on the continent rose 91% in the six-month period. So far this year, they’re neck-and-neck with homegrown Mercedes and ahead of Ford’s 3.8% market share, according to Jato.

BYD, Jaecoo, Omoda, Leapmotor and Xpeng are leading the Chinese brands sales growth in Europe, with BYD in particular employing aggressive pricing, the report says.

Meanwhile, some Europe-based automakers’ domestic market share declined, Stellantis from about 17% down to 15%, its lowest point for the period since it formed in 2021, reported Jato, which cited its increasing focus on more expensive electric vehicles and few new models by many of the company’s brands.

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Chinese automakers, meanwhile, are facing regulatory probes and fines over zero-mileage “used” electric vehicles registered domestically without first being sold in order to draw government subsidies, reported AutoForecast Solutions, which said the practice appears to be widespread in China.

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