Chinese Automakers Reach Nearly 10 Percent of European Market as European Brands Lose Share

Chinese automakers accounted for almost 10 percent of the European market as of late June 2026, Forbes reported, and AlixPartners projects the share will reach 16 percent by 2030. Stephen Dyer, head of AlixPartners’ Asia automotive practice, said Chinese makers are taking market share from European brands in a saturated market rather than expanding overall demand.

In Germany, Chinese automakers sold just over 38,000 new EVs in the first half of 2026, nearly matching BMW’s 39,772 units.

EVs made up 42.9 percent of Chinese automaker sales in Germany during that period, above the overall German EV market share of 24.8 percent. Japanese manufacturers held a 10. The EU already applies tariffs of up to 35.3 percent on Chinese EVs in addition to the standard 10 percent import duty.

A preliminary EU finding permits 10 percent of sales after 2035 to be non-EV models, though the industry seeks further changes to the zero-emission requirement that takes effect that year. Several Chinese firms are moving production inside the EU to avoid tariffs. BYD will begin output at a plant in Hungary.

Chery will assemble Jaecoo and Omoda vehicles in Spain and has an agreement to use part of Nissan’s British factory for EVs. Leapmotor produces some models at Stellantis plants in Spain, and Geely will take over about one-third of Ford’s Valencia plant. Chinese auto exports reached 1.1 million units in June 2026, 70 percent above the same month in 2025.

The EU’s Industrial Accelerator Act remains in the European Parliament and is not expected to become law until 2027. Volkswagen, Europe’s largest carmaker, proposed cutting 100,000 jobs and closing four factories in Germany amid stagnant demand and high energy costs.