Chinese car brands are no longer fringe players in Europe. They accounted for barely 1% of European sales five years ago before climbing to 12.7% in September and, over the course of one quarter, moved ahead of Japanese rivals in Europe for the first time, The Straits Times reported.
Here's what to know
According to DataForce figures, Chinese-branded vehicles made up 12.7% of registrations across Europe in September. Hybrids accounted for much of the growth, pushing Chinese brands past Japanese automakers, which stood at 11.9%.
Volkswagen, Renault, and other European manufacturers still hold the top positions, but the pace of China's gains has taken much of the industry by surprise.
The milestone stands out in part because Japanese automakers spent decades building their presence in Europe. Toyota has been selling cars there since 1963, and Nissan started production at its Sunderland plant in the United Kingdom in 1986, the Times reported.
The shift has been apparent in the U.K., as Chery's Jaecoo 7 SUV topped the country's sales rankings in March and September.
More background
For Europe's carmakers, the advance of Chinese brands adds pressure at an already difficult time.
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In China, still the industry's largest market, buyers have increasingly moved away from brands such as Volkswagen and BMW and toward domestic automakers that are introducing new models faster and often at lower prices.
But weakening demand at home is driving Chinese manufacturers to seek growth elsewhere. Europe has become a key destination, especially as BYD, Chery, and Geely's Zeekr introduce more models shaped around local preferences, the Times noted.
That strategy was visible at the Paris car show in mid-October, when those companies displayed a range of new vehicles, including the BYD Dolphin G DM-i, a compact plug-in hybrid built specifically for Europeans.
More low-cost hybrid and electric models could heighten competition in a market wherein affordability remains a central issue.
If high fuel prices boost interest in electric vehicles, expanding EV lineups in Europe could further help Chinese automakers.
What's being done?
The European Union is taking steps to slow import growth.
After imposing additional tariffs on battery-electric vehicles made in China, the EU agreed in principle in October to curb rapidly rising hybrid imports from China.
The bloc is also considering rules that would give an edge to locally made vehicles when subsidies and incentives are awarded, per the Times. One proposal would connect some company-car tax breaks to European production, an important mechanism in countries such as Germany, where corporate and fleet purchasers account for a large portion of the market.
There is not agreement on that approach. Mercedes-Benz has supported political backing for European industry while also warning that supply chains could be disrupted and costs could increase.
Chinese automakers, meanwhile, are preparing for a future in which selling in Europe may increasingly mean producing there too. Chery is getting production lines ready in Barcelona, Spain, while BYD is close to completing a manufacturing site in Hungary.
Through the companies' joint venture, Zhejiang Leapmotor Technology has started producing its B10 SUV at Stellantis NV's plant in Zaragoza, Spain.
Where can I learn more?
These stories take a closer look at the competitive shifts reshaping Europe's car market.
• BMW warned that some Chinese cars in Europe make little business sense without tariffs.
• BYD is using tariffs to accelerate its Hungary expansion, with more European factories planned.
• BYD's September sales hit a 2026 high as overseas demand reversed a weak start.
• In Europe, BYD's Seal 6 DM-i adds a value-focused plug-in hybrid for families.
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