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Where Chinese automakers have gained the most ground in Europe

Published by Global Banking & Finance Review

Posted on February 11, 2026

2 min read

· Last updated: February 11, 2026

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Where Chinese automakers have gained the most ground in Europe
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By Javi West Larrañaga and Alessandro Parodi Feb 11 (Reuters) - Chinese automakers gained ground in Europe's competitive car market in 2025, but their market share varied greatly from country to

Where Chinese automakers have gained the most ground in Europe

By Javi West Larrañaga and Alessandro Parodi

Chinese Automakers' Growth in Europe

Feb 11 (Reuters) - Chinese automakers gained ground in Europe's competitive car market in 2025, but their market share varied greatly from country to country, data from automotive consultancy Inovev shows.

Although Chinese firms doubled their overall share of car sales in Europe to 6% last year, they represented nearly 14% of sales in Norway, where almost all newly registered vehicles were fully electric, while making up just over 2% of sales in Germany and Slovakia.

Market Share by Country

Companies including BYD, Geely Holding and Chery have expanded quickly into major markets across Europe, attracting cost-conscious buyers with cars that in some cases cost 10,000 euros ($11,902) less than equivalent models from European brands.

Impact of Tariffs on Sales

They gained ground in Britain, to around 11% of all new car sales in 2025, and in Spain and Italy, to around 9%, Inovev's data shows, roughly doubling the respective market shares from a year earlier.

Challenges in Key Markets

The European Union has imposed tariffs of up to 35% on Chinese-made EVs, but that has not stopped the country's automakers, including newcomers like Changan, from launching new models. 

Crucially, the tariffs do not apply to combustion engine or hybrid models. So in Poland, where Chinese automakers had an 8.2% market share last year versus almost zero sales as recently as 2023, almost two-thirds of the vehicles they sold had a combustion engine.

But new Chinese rivals are struggling to win over consumers in car-manufacturing countries like Germany or France, the data shows.

Inovev's data includes figures from the European Union, Britain, Switzerland and Norway, excluding Sweden's Volvo Cars, which is majority-owned by China's Geely.

Britain has not imposed tariffs on Chinese-made cars.

($1 = 0.8402 euros)

(Reporting by Alessandro Parodi and Javi West Larrañaga in Gdansk; editing by Nick Carey, Kirsten Donovan)

Key Takeaways

  • Chinese automakers doubled their market share in Europe to 6% in 2025.
  • In Norway, Chinese car sales reached nearly 14%, driven by EV demand.
  • Tariffs on Chinese EVs in the EU have not deterred market entry.
  • Chinese brands gained significant ground in the UK, Spain, and Italy.
  • Combustion engine models remain popular in Poland.

Frequently Asked Questions

What is market share?
Market share refers to the percentage of an industry or market's total sales that is earned by a particular company over a specified time period.
What are electric vehicles (EVs)?
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of internal combustion engines, using electricity stored in batteries.
What is the automotive industry?
The automotive industry encompasses all companies and activities involved in the manufacturing, marketing, and selling of motor vehicles.
What is a combustion engine?
A combustion engine is an engine that generates power by burning fuel and air, converting the energy from combustion into mechanical energy.

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