Chinese carmakers grabbed a record share of the European car market last month. But their advance is increasingly driven by plug-in hybrid sales. As many as one in three PHEVs now carry a Chinese badge.
Chinese brands accounted for almost 12% of European new-car sales in August, according to figures from German market researcher Dataforce. That means almost one in eight new cars now carries a Chinese badge, up from less than 1% five years ago.
MG loses ground
Though battery-electric vehicles make up the bulk of sales (36,301 units), the headline trend is in the hybrid corner. Roughly a quarter of all hybrid cars sold in Europe are Chinese. Among plug-in hybrids, that share even rises to around one third (34% or 33,384 units).
Battery electric sales from Chinese brands did slide somewhat. From 39% to 37% in a year-on-year comparison. BYD remains the top seller across the continent, with Chery coming in second, while longtime leader MG dropped to third place.
Europe’s trade policy has helped accelerate the shift in drivetrains. The anti-subsidy duties on Chinese-made battery-electric cars are increasingly pushing the Chinese strategy toward hybrids, to which the additional tariffs don’t apply. But that might not last.
Diplomatic warning
The European Union has already officially urged the Chinese authorities to step in to address the dumping tactics of hybrid cars exported from the region. This is a diplomatic warning ahead of a broader application of tariffs to all electrified cars from China. In fact, the unfair subsidy scheme for the automotive industry, which underpins these punitive measures, isn’t limited to battery cars.
Sales data should therefore be read against the backdrop of a transitional phase. New tariff regulations are in the making and could curb the surge in hybrid sales. Meanwhile, the Chinese brands are constructing local factories in Europe, which could revive the head start of their pure electric cars.
Without tariffs: 20%
European markets also differ sharply. In Germany, Europe’s largest car market, Chinese brands reached around 6.4% in August. In Belgium, their combined share was above 7%.
BYD alone registered 1,001 cars in Belgium during the month, representing around 3.5% of the market. Jaecoo added 288, Xpeng 258 and Leapmotor 227 registrations. Those four brands alone accounted for approximately 6.3% of Belgian registrations.
The United Kingdom offers an even more interesting comparison. Unlike the EU, Britain has not introduced additional anti-subsidy tariffs on Chinese electric cars. As a result, one in five new cars sold there last month came from a Chinese brand.
The worrying trend is that Chinese brands’ diversification is bearing fruit. While established brands can focus on building better, cheaper EVs, the threat is now spreading to combustion-engine (ICE) models as well.
