Chinese car brands significantly increased their market share in Europe, reaching a record 11% of new car sales in July. This growth is largely attributed to the popularity of more affordable plug-in hybrids, with Chinese manufacturers like Chery Automobile Co.'s Jaecoo accounting for a record one-third of all plug-in hybrids registered in Europe during July. This surge highlights a strategic shift by Chinese automakers towards electrified vehicles, which are currently exempt from the additional tariffs imposed by the European Union on Chinese-built battery-electric and extended-range electric vehicles.
The overall European market saw registrations rise by 4.1% in July and 5.7% year-to-date. While full-electric sales jumped 51% in July, a significant portion of the Chinese brands' momentum came from plug-in hybrids, which saw a 201% increase in sales for Chinese brands in July. Full hybrids also climbed 137% for Chinese brands, increasing their share of Chinese-brand registrations to 19% from 2% in July 2025. This diversification beyond purely battery-electric vehicles allows Chinese manufacturers to target various price points and segments, effectively navigating trade barriers.
Leading Chinese brands in this surge include SAIC (with MG), BYD, and Chery Group (including Chery, Omoda, and Jaecoo). SAIC was the largest Chinese manufacturer year-to-date with 208,009 sales, up 19%. BYD followed closely with 205,451 units, marking a 146% increase, and Chery Group saw a 283% surge to 201,544 vehicles. In July alone, BYD took the lead with 32,470 sales (up 150%), followed by Chery with 31,816 units (up 202%), and SAIC with 27,745 (up 22%). The BYD Seal U was the top-selling Chinese model in July, primarily due to its plug-in hybrid version.
