Chinese brands defying odds in Europe

According to a report in Nikkei Asia, Chinese automakers sold more vehicles than South Korean brands in Western Europe, including the United Kingdom for the first time ever in September. 

A recently published analysis using data from Germany-based Schmidt Automotive found Chinese market share in the region had reached 8 per cent in September, beating that of South Korea, with 7.8 per cent.

October numbers revealed South Korea's Kia and Hyundai were marginally back in front, China’s successful September demonstrates the country's brands are getting a foothold in Europe.

Schmidt automotive figures show from January to September, Chinese carmakers sold more than 500,000 cars in Europe, which represents a 77.5 per cent increase year on year.

These increasing figures fly in the face of European Union tariffs, which saw levies placed on Chinese-made electric vehicles from October 2024, consequent of suspected unfair subsidisation from the Chinese government.

This makes it especially difficult for Chinese brands who face tariffs of up to 35 per cent on imports in addition to the 10 per cent foreign cars tariff already in place.

EVs are taking on an increasingly important role for brands selling cars in Europe, with the EU looming 2035 internal combustion engine cut-off. By the EU imposing significant tariffs on Chinese vehicles, it poses difficulties for them to compete in the market.

The goal of these tariffs from the EU was two-fold: to encourage Chinese brands to build their cars in Europe and to give domestic carmakers a leg up.

The tariffs have failed to have these desired effects, courtesy of a two-pronged reaction from China.

The tariffs in question only apply to EVs, meaning brands have stepped their imports of hybrid and internal combustion vehicles.

Brands have also managed to substantially lower their other import costs. On average, it is $9000 cheaper per import compared to the peak import price in the first half of 2023. 

The news from Europe lines up with what is happening in Australia, where Chinese brands are continuing to expand their presence. 

In October, one in five cars sold in Australia were manufactured in China. 

BYD continues to lead the way for Chinese brands with more than 45,000 sales so far in 2025 up to November, compared to a little over 18,000 sales in all of 2024. 

BYD will extend its lineup in Australia again in 2026, as its ever-expanding Chinese range is exported across the globe.

New Chinese brands continue to filter into the market. Most recently, Chery sub-brand Lepas announced its L8 mid-size SUV will launch in 2026.