Every Tenth Car Sold in Europe Is Now Made in China: A Record That Changes the Market
Every Tenth Car Sold in Europe Is Now Made in China: A Record That Changes the Market
Chinese automakers reached a record 9.5% share of Europe’s car market in late 2025, driven by EVs, hybrids, and aggressive pricing. The shift threatens European jobs while accelerating localization by Chinese brands inside the EU.
Chinese automakers have reached a historic milestone in Europe. According to Dataforce, nearly one in ten new cars sold in the region last month — 9.5% — came from a Chinese brand. This is the highest share ever recorded and a clear signal that the competitive balance of the European auto market is shifting faster than expected.
Chinese automakers have reached a historic milestone in Europe. According to Dataforce, nearly one in ten new cars sold in the region last month — 9.5% — came from a Chinese brand. This is the highest share ever recorded and a clear signal that the competitive balance of the European auto market is shifting faster than expected.
Chinese Brands Overtake Korean and American Rivals
The breakthrough did not happen overnight. In the fourth quarter of 2025, Chinese manufacturers surpassed South Korean brands such as Kia and Hyundai in quarterly European sales. Earlier in the year, American brands were already overtaken.This progression highlights how Chinese automakers are no longer niche players but structural competitors capable of displacing long-established global manufacturers across multiple segments.
Electrification Is the Core Growth Engine
The main driver of this expansion is electrification. In December, Chinese brands captured 16% of Europe’s electrified vehicle segment, including electric vehicles and hybrids. This figure is double the level recorded in 2024.
When vehicles from Western brands that are manufactured in China and imported into the EU — such as Tesla, Volkswagen, and BMW — are included, the scale becomes even more striking. Every seventh electrified vehicle sold in Europe now has Chinese production roots.
Every Tenth Car Sold in Europe Is Now Made in China: A Record That Changes the Market
Southern Europe Becomes the Unexpected Growth Hub
Analysts were particularly surprised by the speed of adoption in Southern Europe. Spain, Italy, Greece, and the UK emerged as key growth markets where consumers proved far more flexible in brand selection than previously assumed.As Dataforce analyst Julian Litzinger noted, demand for Chinese electric vehicles in these regions exceeded even optimistic expectations. Price sensitivity, combined with rapid improvements in technology and design, reshaped consumer behavior faster than traditional forecasts anticipated.
Price Advantage Redefines Consumer Choice
Cost remains the decisive factor. In the UK, the BYD Seal U hybrid crossover starts at £33,340, while its direct competitor, the Volkswagen Tiguan eHybrid, begins at £42,840. This gap alone explains a significant portion of the demand shift.For many European buyers, Chinese brands now offer an acceptable — and often superior — balance of price, range, and features at a time when household budgets remain under pressure.
European Auto Industry Under Structural Pressure
The rapid rise of Chinese manufacturers comes at a critical moment for Europe’s automotive sector. The industry employs around 13 million people across the region. Over the past 18 months, approximately 110,000 jobs have already been lost.Industry leaders warn that the situation is no longer cyclical. Roberto Vavassori, head of Italy’s Anfia automotive trade group, described the situation as a matter of survival for European manufacturing.
Localization Strategy Softens Political Resistance
Chinese automakers are not relying solely on exports. Localization is becoming a central strategy. Stellantis has already begun assembling Chinese Leapmotor vehicles in Spain. BYD and Chery are investing in European factories, design centers, and regional operations.By creating local jobs and embedding themselves into Europe’s industrial ecosystem, Chinese manufacturers are positioning themselves not as external disruptors, but as long-term participants in the European market.
A Structural Shift, Not a Temporary Trend
The data suggests that Europe is entering a new automotive era. Chinese brands are no longer competing only on price. They are combining scale, electrification expertise, and localization to secure durable market share.For European automakers, the challenge is no longer about defending legacy positions. It is about adapting to a market where global competition has permanently intensified — and where China has become a central player.
By Claire Whitmore
February 06, 2026
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February 06, 2026
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