China hits record Europe car sales on hybrid, EV growth
- ByStartupStory | October 29, 2025
Chinese automakers have surged past previous records in Europe, achieving their strongest sales month ever in September 2025 fueled by rapidly growing demand for hybrid and electric vehicles (EVs). This milestone demonstrates how China’s automotive industry has successfully expanded beyond its domestic market and established a formidable presence across Europe’s competitive car landscape.
According to market research firm Dataforce, Chinese car manufacturers accounted for a record 7.4% share of all passenger car sales across Europe in September—the highest ever for the region—surpassing established competitors such as South Korea’s Kia for the first time.
Leading the Charge: BYD, MG, and Chery
Leading this upward trajectory were industry giants BYD Co., SAIC Motor Corp.’s MG brand, and Chery Automobile Co., each riding the wave of consumer appetite for greener and more affordable transport alternatives. BYD in particular—a global leader in electrified vehicles—registered a fivefold increase in European sales last month to approximately 25,000 units, driven by a growing lineup of plug-in hybrids (PHEVs) and battery electric vehicles (BEVs).
BYD’s expansion in Europe is notable for establishing nearly 100 franchised retail outlets across the UK in less than two and a half years since launching its first showroom in 2023. It offers feature-rich vehicles with long electric-only ranges, rapid charging capability, and pricing strategically positioned below many premium European rivals.
MG and Chery also saw significant market share gains, with MG outselling well-known marques like Tesla and Fiat in August 2025, and Chery focusing on mass-market crossovers and SUVs with extensive feature sets to match European demand.
The Hybrid Boom and Market Dynamics
While pure battery electric vehicles continue to gain traction, plug-in hybrid electric vehicles experienced an even more dramatic uptake. European registrations of PHEVs soared 59% year-on-year in August, reaching 83,900 units and lifting the segment’s market share to 10.6%. Chinese brands led this growth by offering competitively priced PHEVs with electric-only driving ranges appealing to urban and suburban customers.
This surge is partly attributable to increased import tariffs on battery electric vehicles imposed by the European Union, prompting Chinese manufacturers to pivot aggressively toward hybrids with both electric and combustion components to maintain price competitiveness and regulatory compliance.
European Consumers Embrace Chinese Brands
Consumer reception in Europe has evolved significantly. Once perceived as lower-quality alternatives, Chinese automakers have invested heavily in quality improvements, brand building, and dealer networks. As a result, European buyers increasingly view these brands as viable, value-for-money options.
This shift is especially evident in the UK, which accounted for nearly half of Chinese car sales in Europe during September. UK buyers, motivated by the twice-yearly license plate changeover and relatively favorable import tariffs (10% compared to higher EU levies), have readily embraced Chinese EVs and hybrids.
Analysts note that European consumers’ preference for plug-in hybrids is currently unmatched by most European automakers, putting Chinese brands in a strong competitive position, especially as tighter CO2 regulations impose cost burdens on purely internal combustion engine vehicles.
Challenges for European Automakers
The rapid gains by Chinese brands underscore challenges facing established European car manufacturers, who must accelerate PHEV and BEV production while keeping prices affordable. The competition pressures legacy automakers to innovate faster and potentially rethink supply chains and marketing strategies to sustain their market positions.
Chinese automakers’ approach of combining technological advancement, aggressive pricing, and rapidly expanding dealer ecosystems presents a formidable blueprint that European and South Korean rivals are racing to match.
Outlook and Future Trends
The record month in September 2025 represents a broader trend toward electrification not only in Europe but globally. PwC’s mid-2025 global EV report confirmed a 32% combined increase in BEV sales across Europe’s top five markets year-over-year with Germany’s BEV market performing particularly strongly.
China’s expanding role as a producer and exporter of EVs and hybrids will likely accelerate as automakers leverage new battery technologies, modular platforms, and strategic partnerships worldwide.
Conclusion
China’s breakthrough in European passenger car sales powered by hybrids and electric vehicles marks a new era in global automotive competition. With brands like BYD, MG, and Chery not only meeting but exceeding local expectations in product quality, pricing, and sustainability, Chinese automakers are becoming mainstream choices in European showrooms.
As regulatory pressures increase globally and consumer preferences shift decisively toward clean mobility, the Chinese auto industry’s success in Europe serves as a bellwether of the future—a more integrated, competitive, and green global automotive landscape.
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