Thanks to strong growth in the pure electric and hybrid vehicle sectors, Chinese automakers have achieved their best-ever performance in the European market.
According to research firm Dataforce, in September this year, Chinese companies led by BYD, SAIC Motor's MG, and CHERY AUTO saw their sales share in the entire European passenger car market rise to a record 7.4%. This milestone performance is attributed to Chinese automakers continuously expanding their dealer networks and launching a series of competitively priced plug-in hybrid and pure electric vehicle models.
This growth momentum is particularly pronounced in the UK market, where sales nearly account for half of the total sales of Chinese manufacturers in Europe. In September, BYD's sales in the UK surged sixfold month-on-month.
Additionally, according to Schmidt Automotive Research, the market share of Chinese brands in the 18 Western European countries has reached 8%, surpassing Korean brands for the first time. Dataforce analyst Benjamin Kibies stated:
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“We are seeing a continuous increase in the penetration of Chinese brands in the European market.”
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<h2>The UK Market as a Key Growth Engine</h2>
The surge in sales of Chinese brand cars in the UK in September is partly due to the country's biannual license plate change cycle, but the deeper reasons lie in the enhanced brand appeal and relatively mild trade environment.
“The UK market is crucial,” Kibies said, “Chinese brands are performing very strongly in the UK.”
Data shows that BYD's sales in the UK increased sixfold in September, while MG, originally a British brand, also achieved nearly the same growth rate. In addition, CHERY's Omoda and Jaecoo brands have also established a foothold in the market with their new hybrid SUVs. According to a previous article from Wall Street Insight, BYD's sales in Europe in September skyrocketed by 398% year-on-year, with market share jumping from 0.4% a year ago to 2%.
One of the key strategies behind the success of Chinese brands is their precise entry into the rapidly growing niche market, particularly in the plug-in hybrid electric vehicle (PHEV) sector. These vehicles offer lower operating costs and do not require complete reliance on charging facilities, making them an increasingly attractive option for many consumers today.
According to the European Automobile Manufacturers Association, sales of plug-in hybrid vehicles in the entire Greater Europe region soared by 62% in September. Additionally, Dataforce reported that the market share of Chinese brands in the plug-in hybrid vehicle market jumped over 7 percentage points month-on-month to 20%; their share in the pure electric vehicle market also grew by 1.7 percentage points to 11%.
“Consumers are clearly leaning towards plug-in hybrid vehicles—and currently, only Chinese brands can offer these products at reasonable prices,” analyst Michael Dean pointed out:
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&#34;The current question is whether European automakers can ramp up their plug-in hybrid vehicle production quickly enough and economically enough to compete.&#34;
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<h2>Market Landscape Changes, European Automakers Under Pressure</h2>
In the Chinese market dominated by electric vehicles, European brands have lost some market share, and now they are facing increasingly fierce competition in their home markets as well. According to Schmidt Automotive Research, Chinese brands have captured 8% of the market share in 18 Western European countries, surpassing Korean brands for the first time.
To consolidate their market position, Chinese automakers are actively expanding their sales networks and launching a large number of new models. Since opening its first showroom in the UK in 2023, BYD has established 100 franchised retail outlets in less than two and a half years, covering most areas of the UK.
&#34;They are spending money to gain market share—offering very attractive conditions to dealers to represent these brands,&#34; said Bernstein analyst Stephen Reitman:
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&#34;Dealers value the product's worth, while consumers are impressed by the products themselves.&#34;
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On the product front, the new generation of plug-in hybrid models from Chinese brands features longer pure electric ranges, fast charging capabilities, and rich standard configurations, all priced lower than their European competitors. New vehicles launched this year include CHERY's Omoda 7, Jaecoo J8 SUV, and BYD's Seal U DM-i SUV and plug-in Dolphin. Last week, Geely showcased its EX5 electric SUV in London and plans to launch 10 models in the UK over the next three years. However, Dataforce's Kibies also mentioned that some sales of MG, BYD, and Leapmotor in September came from &#34;tactical registrations,&#34; which refers to vehicles sold to leasing companies or dealers

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Driven by the strong growth of pure electric and plug-in hybrid vehicles, Chinese automakers' market share in the European passenger car market rose to a record 7.4% in September. Brands like BYD and MG performed particularly well in the UK market. Chinese brands achieved a 20% market share in the plug-in hybrid market, surpassing Korean brands for the first time in the 18 Western European countries

- Chinese automakers achieved record sales in Europe in September, capturing a market share of 7.4%, led by BYD, SAIC Motor, and Chery.  
- The UK market was a significant growth driver, with BYD's sales increasing sixfold, attributed to enhanced brand appeal and favorable trade conditions.  
- Chinese brands are expanding their dealer networks and introducing competitively priced plug-in hybrid and electric vehicles, while European manufacturers face increasing competition and pressure on market share.

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Chinese car companies have welcomed their best month in history in Europe, with market share surpassing that of South Korean car companies for the first time