Chinese carmakers hit record hybrid market share in Europe

Chinese automakers achieved a new milestone in Europe in May, seizing record market share in hybrid vehicles and making significant inroads in electric cars, according to data from industry researcher Dataforce. Manufacturers led by BYD and SAIC Motor’s MG brand captured more than 9 per cent of Europe’s hybrid and electric vehicle (EV) market, the highest levels ever recorded for Chinese companies. Overall, Chinese-branded vehicles, including those with combustion engines, accounted for more than 5 per cent of all new car registrations in Europe for the first time.

The latest figures highlight how Chinese carmakers are solidifying their presence in one of the world’s most competitive auto markets, leveraging strengths in battery technology and software to push forward despite regulatory hurdles. The strongest growth has come from hybrid models, which are not subject to the European Union’s (EU) recent tariffs on Chinese-made EVs. In May 2023, Chinese brands held just 1 per cent of the plug-in hybrid segment. By May 2024, they had claimed 12 per cent of plug-in hybrid sales and 7 per cent of the mild hybrid market.

BYD has emerged as a standout performer. The company, which has named Europe its most important international market, has expanded its footprint even after the EU’s tariff imposition. “Instead of stopping them, the tariffs are forcing brands such as BYD to introduce more affordable models in the entry segments,” Felipe Munoz, an analyst at Jato Dynamics, told Bloomberg.

To adapt, BYD is targeting mass-market categories with new models like the Dolphin Surf, an urban compact, and the Atto 2, a small SUV aimed at value-conscious buyers. MG, originally a British sports car marque now owned by SAIC, was among the hardest hit by the EU tariffs, facing duties of 45 per cent on its EVs. In response, MG has pivoted away from pure electric models, increasing its focus on hybrids.

Despite regulatory headwinds, sales of Chinese vehicles in Europe rose 85 per cent in May to over 60,000 units, reaching levels not seen since mid-2024. Analysts say the growth trajectory of Chinese automakers in Europe is likely to continue, especially in hybrid segments that remain tariff-free.