Chinese automakers have recorded their strongest performance to date in the European market, driven by robust growth in pure electric and hybrid vehicle segments.

According to research firm Dataforce, Chinese brands led by BYD Company Limited, SAIC's MG, and Chery achieved a record 7.4% share of Europe's passenger car market in September. This milestone was supported by the expansion of dealership networks and competitively priced plug-in hybrid (PHEV) and battery-electric models.

The UK emerged as a key growth driver, accounting for nearly half of Chinese automakers' total European sales. BYD Company Limited saw a sixfold month-on-month sales surge in the UK during September.

Schmidt Automotive Research data shows Chinese brands captured 8% of the market in 18 Western European countries, surpassing Korean automakers for the first time. Dataforce analyst Benjamin Kibies noted, "We're observing sustained growth in Chinese brands' European market penetration."

UK Market Fuels Expansion The UK sales boom coincided with its biannual license plate renewal cycle, but deeper factors include enhanced brand appeal and favorable trade conditions. "The UK market is critical," Kibies emphasized. "Chinese brands are performing exceptionally well there."

BYD Company Limited's UK sales jumped sixfold sequentially, while MG (originally a British brand) posted similar growth. Chery's Omoda and Jaecoo brands also gained traction with new hybrid SUVs. Earlier reports indicated BYD Company Limited's European sales soared 398% year-on-year in September, with market share rising from 0.4% to 2%.

A key strategy has been targeting fast-growing segments, particularly PHEVs, which offer lower operating costs without full reliance on charging infrastructure. European PHEV sales surged 62% across wider Europe in September, per ACEA data. Chinese brands claimed 20% of the PHEV market (up 7 percentage points) and 11% of the pure EV market (up 1.7 points).

"Consumers clearly favor PHEVs—currently only Chinese brands offer them at reasonable prices," analyst Michael Dean observed. "The question is whether European automakers can scale PHEV production quickly and cost-effectively enough to compete."

Market Shift Pressures European Automakers Having lost ground in China's EV-dominated market, European brands now face intensifying competition at home. Chinese automakers are aggressively expanding sales networks and launching new models. BYD Company Limited has established 100 UK retail outlets since opening its first showroom in 2023.

"They're trading investment for market share—offering dealers highly attractive terms," Bernstein analyst Stephen Reitman said. "Dealers value the product economics, while consumers are impressed by the vehicles themselves."

Chinese brands' next-gen PHEVs undercut European rivals with longer electric range, fast-charging capability, and generous standard features. Recent launches include Chery's Omoda 7, Jaecoo J8 SUV, BYD Company Limited's Seal U DM-i SUV, and plug-in hybrid Dolphin. Geely recently unveiled its EX5 electric SUV in London, planning 10 UK models within three years.

However, Dataforce noted some September sales for MG, BYD Company Limited, and Leapmotor involved "tactical registrations" to leasing firms or dealers.