Chinese automakers accelerate in the European market, gaining nearly 13% share despite regulatory pressures

The reality shown by November’s data is shocking. Despite headwinds such as the EU’s new tariffs, Chinese automobile manufacturers captured 12.8% of the entire European electric vehicle market. According to Dataforce statistics obtained by Bloomberg, including hybrid vehicles, that figure exceeds 13%. While BYD and SAIC Motor lead the market, emerging players like Chery Automobile and Zhejiang Leapmotor Technology are rapidly increasing their presence.

Why are they so aggressive?

The underlying reason is a serious overproduction within China. Domestic market competition has intensified, forcing manufacturers to seek new sales channels. Europe is an ideal target market for this.

BYD’s European conquest strategy

BYD is the most proactive in pushing this strategy forward. They are expanding their plug-in hybrid and premium brand lineup and focusing their investments on building factories in Europe. While domestic competitors like Geely and Xiaomi are growing rapidly, the company wants to quickly establish a foothold in Europe.

Headquartered in Shenzhen, BYD has already made significant efforts. They are steadily building their brand, expanding their dealer network, and developing charging infrastructure. It’s clear they want to complete all preparations before latecomers arrive.

BYD’s Executive Vice President Stella Li spoke about the first European factory in Zhengzhou at a press conference. The installation of machinery is scheduled to be completed by the end of the year, with test operations in the first quarter of 2026 and full-scale production starting in the second quarter.

It’s not just Hungary. New factories are under construction in Brazil and Turkey, and shipments to Europe from the existing factory in Thailand have already begun since August. Li acknowledged that manufacturing in Hungary will initially be more costly than in China, but emphasized that it is a necessary investment for building a trusted brand and counteracting tariffs. Costs are expected to decrease over time.

Additional potential sites for European factories, including Spain, are also being considered. Li commented, “First, we will expand the Hungary factory, then the facilities in Brazil, and then those in Turkey. The plans beyond that are still unclear.”

CEO Wang Chuanfu recently dispatched R&D teams to Europe, Latin America, and the Middle East. Developing vehicles tailored to consumer needs in each market is an urgent priority.

The results are already reflected in the numbers. Looking at registration data for October, more than four times as many vehicles were registered in Germany and nearly seven times in the UK for BYD compared to Tesla. This is supported by data from government statistical agencies and trade authorities.

Tariff avoidance and hybrid strategy

Chinese automakers are absorbing most of the EU tariffs that began in the second half of 2024. At the same time, they are countering with hybrid models that are not affected by tariffs and expanding into markets outside the EU, such as the UK.

Explosive growth of emerging brands

Leapmotor’s EV sales in Europe recorded a growth of over 4,000% year-over-year as of October. Jato Dynamics data confirms this. Partnership with Stellantis (which owns Peugeot, Fiat, Opel, and others) is driving this growth. During the same period, Chery’s Omoda brand also achieved a 1,100% increase in EV sales.

Traditional European automakers’ anxiety

Existing European manufacturers are feeling the pressure. They are lobbying authorities to relax the rules for the phased abolition of gasoline and diesel vehicles. EU authorities are also beginning to reconsider the plan to ban internal combustion engine vehicle sales by 2035, which is seen as a move to protect one of the continent’s largest industries.