High Tariffs Can’t Stop the Rise: Chinese Automakers Double Sales in Europe, Market Share Breaks 5% for the Fourth Straight Month

Despite high EU tariffs on Chinese electric vehicles, Chinese automakers continue to surge across Europe. According to recent industry data, in August 2025, Chinese-brand car sales in Europe doubled year-on-year, while market share rose from 5.3% in July to 5.4%, marking the fourth consecutive month above 5%.
From January to August, cumulative sales reached 430,000 units, representing a 74% year-on-year increase. During the same period, Chinese automakers’ market share expanded from 2.9% in 2024 to 4.9% in 2025, demonstrating remarkable growth momentum.

👉 Flexible Strategy Amid Policy Shifts

When the EU imposed steep anti-subsidy tariffs on fully electric vehicles, Chinese automakers swiftly adjusted their product mix. They increased investment in plug-in hybrid vehicles (PHEVs), catering to local market demand.
In August alone, PHEV sales soared to 10,406 units, accounting for 25% of total Chinese-brand sales—up from just 4% a year earlier. This rapid adjustment has become a key driver of overall sales growth.

👉 Competitive Pricing Drives Market Appeal

Thanks to an efficient supply chain, China’s EV production costs are about 40% lower than Europe’s. Even after tariffs, Chinese electric vehicles retain a strong price advantage.
While the average European EV sells for €50,000–60,000, popular Chinese models such as BYD and MG are priced between €30,000 and €40,000—often €15,000 cheaper than Tesla and other Western brands.
This affordability is proving highly attractive to price-sensitive European consumers seeking value and performance.

👉 Technological Advancements Strengthen Brand Image

Chinese automakers are steadily transforming their image from “low cost” to “high-tech and high-quality.” With continuous breakthroughs in battery systems and intelligent cockpit technologies, China’s automotive industry has greatly improved its competitiveness.
For example, BYD’s Blade Battery excels in both safety and range performance, enhancing consumer confidence in Chinese brands. Consequently, the average export price of Chinese cars rose from USD 14,500 to USD 18,300 over the past three years, showing readiness to compete directly with global leaders like Tesla.

👉 Targeted Market Expansion and Local Partnerships

Rather than competing head-on in traditional strongholds such as Germany and France, Chinese automakers have strategically focused on Italy, Spain, and the United Kingdom, where market opportunities are broader.
By partnering with local dealers and building robust after-sales service networks, they have expanded market coverage, improved customer satisfaction, and laid a solid foundation for sustainable growth across Europe.

👉 Localized Manufacturing to Bypass Tariffs

To further integrate with the European market, Chinese automakers are accelerating localized production:

• BYD’s Hungary plant is scheduled to begin operations by the end of 2025.

• Chery’s new base in Spain helps avoid tariff barriers.

• CATL’s joint battery factory with Stellantis enhances the regional EV supply chain.
  Operating under the “Made in Europe” model not only reduces logistics and tariff costs but also aligns with EU sustainability and industrial policies.

👉 Market Dynamics Favoring Chinese Brands

Europe’s transition toward green mobility continues to gain pace under new 2025 carbon emission regulations, which mandate a higher share of new energy vehicles.
However, local automakers’ slow electrification progress has created a supply gap. In the first half of 2025, Europe’s battery-electric vehicle (BEV) sales exceeded 1.19 million units, providing Chinese automakers a unique opportunity to fill the void and capture rising demand.

👉 European Consumers Embrace Chinese Cars

Consumer sentiment toward Chinese automotive brands is shifting rapidly. Recent surveys indicate that 47% of European car buyers now consider purchasing Chinese models, surpassing the 44% who consider American brands.
Compared with 2024, European consumers are increasingly recognizing the strong value, advanced technology, and reliability of Chinese vehicles. This growing acceptance marks a pivotal moment for Chinese automakers expanding their global footprint.