Chinese Auto Makers Expand Rapidly, Doubling European Market Share in May

Across 28 European markets, new‐car registrations rose 2.5 % year-on-year in May to about 1.107 million units, according to JATO Dynamics. Chinese automakers registered approximately 65,800 vehicles, marking a year-on-year jump of 111 % and pushing their share of the European market to 5.9 % versus 2.9 % in May 2024. The substantial gain comes in a context where the wider European market continues to grow slowly, making the Chinese brands’ surge especially noteworthy.

Their momentum is partly due to their decision to push alternative powertrains, such as plug-in hybrids and full hybrids, to the region.

Felipe Munoz, Global Analyst at JATO Dynamics

Key Brands Driving the Surge

The standout performers among Chinese brands included MG, which delivered about 29,400 units in May (+30 % year-on-year) and overtook Fiat in year-to-date registrations (133,400 vs 125,300). Meanwhile BYD achieved a staggering +397 % year-on-year increase in the month, coming very close to matching Tesla’s volume in Europe for the first time.

• MG: ~29,400 units in May; year-to-date ~133,400 units
• BYD: ~397 % year-on-year growth in May

These figures illustrate how the Chinese brands are not just entering Europe but rapidly scaling, and doing so even under the headwinds of import tariffs and legacy-brand competition.

Strategic Implications For European Market

The rapid expansion of Chinese car brands in Europe has several implications for the automotive ecosystem. Firstly, legacy European automakers may face increased margin pressure and share erosion, especially in segments where the Chinese brands compete aggressively on price and features. Secondly, the adoption of alternative powertrains—including strong offerings of plug-in hybrids alongside BEVs—gives Chinese makers a broader product palette in Europe’s evolving regulatory environment.

Automakers and dealers will need to consider how to respond: whether by accelerating product renewals, investing in cost competitiveness, or fortifying brand differentiation.