Chinese automakers including BYD, Geely, Chery, and XPeng are expanding quickly in Europe’s auto market.
Chinese brands reached about 9% of European car sales in March 2026, including around 14% of electric vehicle sales. Their market share has doubled over the past year, with some models ranking among top sellers in countries such as Italy, Spain, and the UK.
This growth comes as the European auto market has contracted by around 25% since 2019, while the European Union continues to push its plan for 90% of new car sales to be electric by 2035.
Analysts say Chinese manufacturers benefit from strong EV technology development, large-scale production capacity, and competitive pricing.
A major next step in their strategy is local production in Europe to avoid tariffs and reduce costs. BYD is building a factory in Hungary, while Leapmotor (in partnership with Stellantis) plans production in Spain. XPeng is also assembling vehicles in Europe through partner facilities.
European automakers are responding with partnerships, including Volkswagen with XPeng, Stellantis with Leapmotor, and Renault with Geely, as competition in the EV sector intensifies.
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