Chinese automotive manufacturers have captured a record 5.1 per cent of the European market during the first six months of 2025, marking an almost twofold increase from their previous position.
According to Jato Dynamics data, registrations from Chinese brands surged by 91 per cent compared to the same period last year.
This remarkable expansion comes as Europe's automotive sector faces broader challenges. The continent recorded 6.8 million new vehicle registrations in the first half, representing a marginal 0.3 per cent year-on-year decrease.
Felipe Munoz, global analyst at JATO Dynamics, attributed the market's struggles to multiple factors.
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|Chinese car brands recorded record sales in the first six months of the year
These included persistently high prices, geopolitical and economic tensions with Europe's trading partners, and the post-pandemic market reality are behind the decline.
Five Chinese manufacturers in particular are spearheading this dramatic expansion into European markets.
BYD has emerged as the standout performer, recording 70,500 vehicle registrations during the first half of 2025 - a staggering 311 per cent increase compared to the previous year.
The company's June performance was particularly impressive, with 15,565 units registered, placing it amongst Europe's 25 best-selling brands and surpassing established names including Suzuki, Mini and Jeep.
BYD's Seal U model achieved notable success, ranking as one of Europe's leading plug-in hybrid vehicles alongside the Volkswagen Tiguan.
Other Chinese brands contributing to this growth include Chery's Jaecoo and Omoda subsidiaries, electric vehicle specialist Leapmotor, and premium manufacturer Xpeng.
Leapmotor alone registered more than 8,300 vehicles in June, whilst Xpeng secured 8,338 registrations across the entire first half.
The market share gains by Chinese manufacturers have come at the expense of established automotive giants.
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|The BYD Seal U was one of the best-selling vehicles from the Chinese brand across Europe
Stellantis suffered the most significant decline during the first half of 2025, with its European market share falling from 16.7 per cent to 15.3 per cent compared to the previous year.
Tesla also experienced a substantial setback, seeing its market share drop from 2.4 per cent to 1.6 per cent over the same period.
This decline resulted in the American electric vehicle manufacturer losing its position in the group rankings to SAIC Motor, the parent company of MG, which overtook Tesla for the first time.
Despite these shifts, Volkswagen Group maintained its position as Europe's leading automotive manufacturer by registrations in the first half, followed by Stellantis and Renault Group.
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The broader European automotive market continues to face significant headwinds, with Western Europe losing the equivalent of more than 2.5 million annual sales compared to 2019 levels.
Despite these challenges, battery electric vehicles achieved a milestone by exceeding one million registrations for the first time in the opening half of 2025.
Electric vehicle registrations reached 1,193,397 units, representing a 25 per cent increase year-on-year and accounting for 17.4 per cent of Europe's new car market. However, growth momentum slowed in June, with registrations rising by just 15 per cent to 240,247 units.
Chinese manufacturers have strategically diversified their powertrain offerings beyond pure electric vehicles. Traditional combustion engines comprised nearly two-thirds of Jaecoo and Omoda's combined June registrations, whilst their plug-in hybrids accounted for 29 per cent.