The latest data for May 2025 shows that Chinese carmakers are rapidly gaining popularity in Europe. According to Dataforce, their market share in hybrid and electric vehicles has reached a record 9% in each of these segments. If we also take into account cars with traditional internal combustion engines, the total share of Chinese brands in the European market exceeds 5% for the first time. Particularly noticeable growth has been recorded in the hybrid segment - from 1% in May 2024 to 12% this year.
This sharp increase is explained by the fact that, unlike electric vehicles, hybrids are currently not subject to new EU-wide duties and tariffs imposed by the European Union as part of measures against state subsidies for the Chinese car industry. It is this exemption that allows Chinese brands to strengthen their positions in the face of growing trade tensions.
At the same time, it is important to note that Chinese manufacturers, including BYD, MG (SAIC), Leapmotor, Zeekr and others, are actively investing in improving software and battery systems, which gives them an advantage in technical competition. These factors contribute to the recovery of demand for electric vehicles, the level of sales of which returned to the levels of mid-2024, despite the new barriers from the EU. In turn, this reduced the dependence on direct price advantages and demonstrated that Chinese automakers can be successful even in a stricter regulatory environment.
Europe remains a key strategic market for most Chinese brands, as evidenced by plans for further expansion, including the opening of local production, expanding dealer networks and launching new models tailored to the EU market. According to Bloomberg, this trend will continue and the share of Chinese companies in the electrified transportation market will continue to grow, changing the balance of power in the industry.