Chinese automakers have made remarkable progress in Europe's EV market during the first half of 2025, with sales reaching approximately 347,000 units—a year-on-year increase exceeding 40%. This surge has boosted their market share to around 5.1%, nearly double last year's figure.

BYD led the charge, selling 75,000 vehicles in Europe during H1 2025, already surpassing its full-year 2024 total of 50,000 units.

Growing European EV Adoption

Pure electric vehicles (BEVs) now account for 15%-15.6% of new car registrations across Europe, signaling rapidly growing demand. While adoption rates vary by country, Chinese brands are capitalizing on this expansion.

BYD has experienced particularly strong growth in key markets like Spain, Italy, Germany, and the UK. Its strategy of diversifying its lineup (from compact to large vehicles) and leveraging competitive pricing has proven effective. Analysts credit the timely European launch of its popular SEAL U compact electric SUV—a hit in China—as another success factor.

The commencement of production at BYD's Hungary and Turkey plants has further fueled growth. In price-sensitive Spain, BYD sold 11,960 units in H1, overtaking Tesla to become the second-best-selling Chinese brand after MG.

Chinese Brands Gaining Traction

MG (owned by SAIC since 2010) remains Europe's top Chinese EV brand, selling 151,600 units in H1—a 40% YoY increase representing 43% of all Chinese-brand EV sales in Europe. The MG4 electric model alone propelled MG into Europe's top 7 EV brands by August 2023.

Analysts attribute MG's success to localized dealer/service networks and affordable, high-value models. In some markets, MG has even outperformed Tesla.

Zeekr, Geely's premium EV subsidiary, has also gained traction since its 2024 European launch. Though its H1 sales of 1,600 units (up 50% YoY) remain modest compared to BYD and MG, strategic model expansion and competitive pricing show promise, particularly in Germany, the Netherlands, and Norway.

Emerging brands like Xpeng are making waves too, selling 8,400 units in H1—already surpassing its 2024 full-year total of 8,100.

Future Challenges

Potential headwinds loom in H2, including subsidy cuts. The UK government has signaled plans to exclude Chinese EVs from incentives, which could erode their price advantage. Service network reliability and brand reputation will become critical for long-term customer retention.

Tariffs and local production remain wild cards. BYD is considering additional European factories beyond its existing Hungary and Turkey plants, which could strengthen its competitiveness against European brands.

While Chinese EV brands are expected to maintain momentum in H2 2025—especially BYD and MG—analysts caution that subsidy reductions, tighter regulations, and service network challenges may temper growth.

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