Chinese carmakers are making deeper inroads into Europe’s auto market, bringing more high-quality and affordable vehicles to consumers as their sales continue to rise. Chinese brands accounted for a record nearly 12% of new car sales, a quarter of hybrid sales and about a third of plug-in hybrid sales across Europe in August, according to figures from automotive market research firm Dataforce. Among Chinese manufacturers, BYD recorded 26,103 registrations in August, up 131% year-on-year, while Chery Automobile’s registrations surged 210% to 24,332 vehicles. SAIC Motor, which owns the MG brand, sold 21,132 vehicles, an increase of 32%, Dataforce figures showed. The August performance extended a rapid rise in Chinese brands’ presence in the European market. Between January and July, they accounted for 8.7% of new-car registrations in Europe, a sharp increase from just 0.6% during the same period in 2021.
The growth came as Europe’s shift toward electrified vehicles gathered momentum. Demand for battery-electric and hybrid vehicles combined rose 27% year-on-year, offsetting falling demand for vehicles powered solely by fuel and helping the overall European market expand 4.6%, according to Dataforce. “Chinese NEVs have offered the right solutions at the right time in Europe over the past few years, where high energy prices and rising inflation have made consumers much more sensitive to the total cost of vehicle ownership,” said Liu Yan, Chief Lecturer at the China Automotive Strategy and Policy Research Center. Chinese NEV makers have gained traction in Europe by offering products that combine competitive pricing with strong technology and performance, Liu said, adding that European consumers now increasingly associate Chinese-brand cars with “environmental friendliness, new technologies and stylish design”.
A July survey by consulting firm McKinsey & Company found that European consumers interested in Chinese brands cited value for money, innovation and advanced electric-vehicle technologies among the main reasons for considering them. More than half of European respondents viewed Chinese automakers as technology leaders in battery-electric vehicles, while 40% said the same for plug-in hybrids. PHEVs have emerged as a particularly strong growth driver for Chinese carmakers in Europe, offering consumers a middle ground between conventional vehicles and fully electric models amid concerns over charging access and driving range. Matthias Schmidt, Founder of Germany-based Schmidt Automotive Research, said the growing role of Chinese PHEVs in Europe has become particularly visible this year. Chinese manufacturers accounted for 26% of all PHEVs registered in the 18 Western European markets tracked by the consultancy firm in the second quarter, with their share rising above 30% in June, the China Daily reports.
