As the electrification trend of the European automobile market continues to advance, Chinese new energy vehicle companies are gaining momentum in entering the European market, and are gradually becoming the choice of more consumers with their comprehensive advantages. However, whether this momentum will attract attention also requires relevant Chinese companies to pay attention, pay careful attention to policy trends, and make diversified layouts in advance to cope with the potential risk of increased barriers in Europe.
The electrification trend in the European market continues to advance
Although Europe’s incentives and purchase subsidies for electric vehicles are being reduced or cancelled, the electrification trend in the European automobile market continues to advance. According to data recently released by the European Automobile Manufacturers Association (ACEA), in the first four months of this year, new car sales in the EU, including all engine types, fell 1.2% year-on-year, but sales of pure electric models increased by 26.4%, plug-in hybrid vehicle sales increased by 7.8%, and non-plug-in hybrid vehicle sales increased by 20.8%. Among them, sales of non-plug-in hybrid vehicles were mainly driven by France, Spain, Italy and Germany, with sales in these four markets increasing by 44.9%, 35.8%, 15% and 11% respectively.
From the perspective of market share, as of April, pure electric vehicles accounted for 15.3% of the European market, which is still far below expectations. The sales of hybrid electric vehicles continued to grow, accounting for 35.3%, and it is still the first choice of European consumers. At the same time, the total market share of gasoline and diesel vehicles fell again to 38.2%, lower than 48.4% in the same period of 2024.
Sigrid de Vries, head of the European Automobile Manufacturers Association, believes: “At present, the overall sales of electric vehicles in Europe are growing slowly, but the growth rate of various countries is still slow and uneven.” This shows from the side that there is still a lot of room in the European electric vehicle market, and the degree of electrification transformation and production of local manufacturers are still insufficient.
Chinese new energy vehicle companies accelerate penetration into Europe
Data shows that in the context of high tariffs imposed by the European Union, Chinese new energy vehicle brands are still bucking the trend with multiple strengths and gradually achieving good development in Europe.
According to statistics from market research firm Jato Dynamics, in April this year, the total sales of pure electric vehicles and plug-in hybrid vehicles accounted for 26% of new car registrations in Europe, and Chinese auto brands have become the main force driving this growth. Among them, the sales of Chinese brand pure electric vehicles increased significantly by 59%, and this achievement was achieved under the influence of EU tariffs; and in the plug-in hybrid vehicle market, the sales of Chinese manufacturers increased by 546% year-on-year, from 1,493 in April 2024 to 9,649 in April 2025 – this means that Chinese car brands currently account for nearly 10% of the total number of plug-in hybrid vehicle registrations in Europe.
One of the most eye-catching points in the statistical results is that BYD’s pure electric vehicle sales in the European market exceeded Tesla for the first time in April, and this change is considered to have a “watershed” significance. In April, BYD sold 7,231 pure electric vehicles in Europe, while Tesla sold 7,165. “Although the monthly sales gap between the two brands is not large, the impact is huge…especially considering that Tesla has dominated the European pure electric vehicle market for many years, and BYD will not officially start business outside Norway and the Netherlands until the end of 2022.” The agency pointed out. In addition, Tesla’s total European car sales that month were nearly halved (-49%), while BYD’s sales increased by 359%, and its sales in the UK, France, Italy, Spain and other countries have already surpassed many traditional European car brands.
Can the advantage continue in the future?
Analysts said that the European Commission imposed tariffs on electric vehicles produced in China last fall, and it was expected that this move would set up obstacles for Chinese companies and “protect” local automakers. However, since Europe has not yet imposed taxes on plug-in hybrid systems, Chinese companies seeking alternative solutions have used this as a breakthrough to continue to enter Europe, and China’s hybrid vehicles have strong advantages in technology, performance, price and other aspects. Competitiveness in the European market has conquered more and more European consumers. As Jato Dynamics analyzed, “China is not only a world leader in the field of pure electric vehicles, but its automakers are also in a global leading position in the field of plug-in hybrid vehicles.”
However, industry experts also reminded that if this phenomenon is noticed by European regulators, it may also lead to follow-up measures. Felipe Munoz, an automotive researcher at Jato Dynamics, said that it remains to be seen whether the EU will respond to the rise of plug-in hybrid vehicles made in China by imposing additional tariffs.
However, from the sales performance of pure electric vehicles of Chinese brands that have been subject to tariffs, it can be seen that EU tariffs are not enough to constrain the development of Chinese automakers. According to previous estimates by ING Group, the profits of Chinese electric vehicle manufacturers reached 40%-50%, so they can still adopt a price reduction strategy. In addition, in addition to focusing on the layout of hybrid models, Chinese companies are also using other methods to circumvent the impact of tariffs. For example, automakers including BYD, Chery, SAIC, Leapmotor, and Zeekr have begun or are seeking to build factories in Europe to continue to expand in the European market through localized production. Although customs barriers may slow down the profit growth of automakers, the “conquest” of Chinese brands in Europe has begun to bear fruit.
The French newspaper Le Figaro predicts that as competition intensifies, European automakers may accelerate iteration and upgrade, and may follow the practice of Chinese automakers to sell older models that have been released for a long time at a large price reduction to reduce inventory, and eliminate weaker manufacturers from the market through low-price strategies, accelerating the industry “reshuffle”.
Analysts therefore suggest that Chinese automakers should closely monitor EU policy trends and promptly adjust their product portfolios and market strategies, while continuing to innovate and develop, consolidate their core competitiveness, engage in differentiated competition, actively expand international cooperation, speed up local production, and at the same time track the progress of industry and service construction in the global market and make good diversified layouts.
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