Market Penetration and Sales Figures
Sales of electric vehicles (EVs) from Chinese manufacturers have reached unprecedented levels across Europe. This significant growth is attributed to robust consumer demand, alongside favorable tariff conditions observed in the UK and a noticeable uptick in buyers within Italy.
According to data from Schmidt Automotive Research, Chinese brands captured a 14.2% market share of battery electric vehicles (BEVs) across Western European markets during the first five months of the year. This figure represents 171,800 units sold, marking an increase in market share of nearly five percentage points compared to the same period in 2025.
Several major Chinese companies, including BYD, Chery, SAIC, and Xpeng, have focused their export efforts on Europe as the Chinese automotive industry works to establish global dominance in the electric vehicle sector. These sales figures have intensified calls for the implementation of higher tariffs and stricter quotas, which European manufacturers argue are necessary to protect local industry interests, amidst claims that subsidized Chinese vehicles are being “dumped” into the EU and UK.
Regional Variations and Import Duties
Despite the European Union imposing tariffs of up to 35.3% on certain Chinese electric cars, in addition to the standard 10% import duty, the market shows notable variations.
The United Kingdom emerged as the largest destination for Chinese BEV sales, largely because the UK government opted not to mirror the EU’s decision to impose additional levies. The UK single-handedly accounted for one-quarter of all Chinese BEV sales across the 18 largest Western European markets.
While Italy accounted for a fifth of the total sales, experts noted this was an “anomaly.” This surge was linked to Leapmotor, a manufacturer that shipped thousands of its affordable T03 electric cars into the country to capitalize on existing government purchase subsidies. At one point, these subsidies made the T03 available for as little as €5,000, significantly lower than even the most affordably priced competing models.
In terms of product range, Chinese manufacturers reportedly sold over 120 different models in Europe this year, exceeding the approximately 100 models offered by European brands.
Future Trends and Industry Commentary
Matthias Schmidt, the founder of Schmidt research, suggested that China’s BEV market share may have peaked. He suggested that manufacturers have shifted some focus toward plug-in hybrid electric vehicles (PHEVs). PHEVs, which combine a traditional gasoline engine with a smaller battery, are currently exempt from the extra tariffs placed solely on BEVs.
“I think they are hitting a wall when it comes to pure electric models,” Schmidt stated. “They will prioritise PHEVs over the next 12 months given hybrids are omitted from extra tariffs placed on BEVs. With that loophole set to close in the next 12 months, they will aim to maximise that gap in the door for as long as possible. Given shipping capacity remains limited, more PHEVs means fewer BEVs, which have likely peaked for now. BEVs will take priority again once local EU production comes online.”
These market dynamics prompted commentary from industry leaders. Oliver Blume, the CEO of Volkswagen, previously highlighted that European PHEVs were struggling to compete against their Chinese counterparts. Meanwhile, the German newspaper Handelsblatt reported that the EU is currently considering extending these tariffs to cover PHEVs as well.
The sales data also indicated a rebound for Tesla across Europe. The US automaker managed a 60% year-on-year increase in sales, benefiting from heightened demand for more affordable versions of its Model 3 and Model Y. During the reporting period, the Model Y was the best-selling individual model across Europe.
