Chinese automakers surpassed 100,000 vehicle sales in Europe for the first time in December, marking a 126% increase, according to data from Dataforce cited by Autonews.com. This surge gives them a 10% market share and positions them to exceed 1.2 million vehicle sales on the continent this year.
Throughout 2025, Chinese groups sold 811,000 units in Europe, doubling the figure from 2024, as reported by ChinaEVHome. The British manufacturer MG, owned by the state-owned SAIC Motor, exceeded 300,000 units for the first time, achieving a 26% growth rate.
BYD followed closely, selling 186,612 units alongside its luxury brand Denza, a 286% increase in regional sales. The Chery group also saw significant gains, with its Jaecoo brand selling 56,944 units and Omoda selling 52,950. The Chery brand itself added 10,247 units, while Jetour, a recently launched brand, contributed another 66, bringing the Chery group’s total to 120,207 units – a 605% increase.
Geely-owned Polestar, a Swedish manufacturer, sold 47,579 units. Combined with its luxury brands Zeekr and Lynk&Co, Geely’s European sales increased by 58% to 68,499 units. Geely also owns Volvo, Smart, Lotus and LEVC, the manufacturer of London’s iconic black cabs, and aims for an annual production capacity of 6.5 million vehicles by 2030, compared to Renault’s current output of 2.3 million, including Dacia.
Leapmotor sold 33,567 cars in Europe in 2025 and plans to produce one million vehicles this year, aiming for four million in a decade.
Several other state-owned groups are now targeting Europe, including Dongfeng, Changan, and Hongqi, owned by FAW Group. Xiaomi and Huawei, both major players in the Chinese electronics market, are preparing to enter the European automotive market. Huawei is pursuing a strategy of partnerships, launching new brands in collaboration with established automakers, including Aito (with Seres Group), Maextro (with JAC Group), Luxeed (with Chery), Stelato (with BAIC), and Shangjie (with SAIC). Maextro directly competes with luxury brands like Rolls Royce and Maybach.
Chinese automakers are distinguished by their rapid pace of innovation. While Western manufacturers typically launch new generations of vehicles every 5-7 years, Chinese companies update their models annually, mirroring the cycle of the smartphone industry. This accelerated development leads to the frequent addition of new features, such as mini-fridges, advanced audio systems with over 15 speakers, in-car televisions, and advanced air suspension systems in premium models like the NIO ET9.
Ford’s chief executive recently praised the technology in Chinese electric vehicles after test driving a Changan model in China.
Vertical integration is another key strength of Chinese companies. BYD produces not only vehicles but also the batteries that power them, as well as the software. This proves the world’s second-largest battery manufacturer, after CATL, also based in China. BYD’s Blade batteries are known for their safety, resisting ignition even when punctured with a nail.
Other companies, such as NIO and Xpeng, control the software in their vehicles, enabling independent and rapid updates. NIO operates showrooms in malls, battery swap stations, and Li Auto operates charging stations. Xpeng is developing both autonomous driving software and humanoid robots, even demonstrating the functionality of its robots by revealing their internal mechanisms to dispel concerns they might be disguised humans.
Many Chinese vehicles are described as “smartphones on wheels,” incorporating advanced technologies like 800-volt architecture, 5C prompt charging (10% to 80% in 12 minutes), large infotainment tablets, artificial intelligence, voice assistants, and gesture recognition for door operation. BYD vehicles can charge at 1,000 kW (1 MW), while Zeekr offers charging at 1.3 MW, enabling a full charge of the 001 model in just 7 minutes. NIO has established a network of 3,700 automated battery swap stations, completing a swap in as little as 3 minutes.
Some models offer features previously considered science fiction, such as the BYD Yangwang U8, an amphibious SUV capable of traversing water, and “crab walking” mode for maneuvering in tight spaces.
The reputation for poor quality previously associated with Chinese automakers is also changing, with many vehicles now achieving five-star safety ratings in Euro NCAP tests. Manufacturers are also conducting demonstrations to showcase the durability of their vehicles, including impacts with trucks and rollovers on sand dunes.
Chinese automakers have also recruited designers previously employed by BMW, Audi, Alfa Romeo, Lamborghini, Volkswagen, Mercedes, and Bentley, according to Motor1.com. Luxury brands are emerging as strong competitors to established European marques.
The Yangwang U9, an electric supercar produced by BYD, has surpassed Bugatti’s speed record, reaching 496 km/h.
Chinese manufacturers are employing a strategy similar to that of Japanese and Korean automakers, offering competitive products at lower prices. They begin with affordable models to build trust before introducing premium, high-tech options. The BYD Sealion 5 DM-i, a hybrid SUV, is priced similarly to the Dacia Bigster in Romania. The Chery Tiggo 7 starts at €28,000, undercutting competitors like the Volkswagen Tiguan, Kia Sportage, Nissan Qashqai, and Skoda Karoq. The MG ZS, a compact SUV, starts at €20,000, comparable to the Dacia Duster, but with more features. A fully equipped Dacia Sandero Stepway exceeds €20,000.
In China, cars can be purchased for as little as $6,000, such as the Wuling Mini and Changan Lumin city cars. Common sedans are available for $10,000-$12,000, like the Geely Emgrand and Geely Starshine 6. Such prices are unavailable in Europe, even for mini-class vehicles.
China’s dominance in the battery sector is a key advantage. The country possesses the largest reserves of rare earth minerals used in batteries, electric motors, and magnets, and is the world’s largest battery producer. Six of the top 10 battery manufacturers are Chinese: CATL and BYD lead globally, followed by CALB, Gotion, Eve Energy, and Svolt. CATL holds a 39% global market share, and BYD has 16%. The remaining companies in the top 10 are Panasonic, LG Energy Solution, SK On, and Samsung SDI, all from Japan and South Korea.
China produced 34 million vehicles in 2025, with new energy vehicles (electric and hybrid) exceeding 16 million, according to the People’s Daily. China is now the world’s largest automobile producer, market, and exporter, surpassing Japan in 2023, with exports increasing from one million vehicles in 2019 to 7.1 million in 2025.
CATL recently unveiled sodium-ion batteries with remarkable cold-weather performance, maintaining 90% of their energy capacity at -40°C, significantly better than lithium iron phosphate (LFP) batteries. Changan will be the first Chinese manufacturer to launch models with these new batteries.
Chery, GAC, SAIC, and Dongfeng have also presented prototypes with solid-state batteries, offering higher energy density and potential ranges exceeding 1,000 kilometers. Dongfeng’s prototype boasts over 1,000 km of range, while Chery’s Exeed model achieves 1,500 km with a 600 Wh/kg density.
Government subsidies continue to support Chinese manufacturers, enabling them to undercut foreign competition. The European Union has imposed tariffs of 35% on top of the standard 10% for all imports from China in response, and has recently secured concessions from China regarding minimum selling prices.
