Chinese Brands Outsell Japanese in Europe for First Time in May, Pressuring Renault to Retreat

In May 2026, five Chinese automakers—BYD, SAIC, Geely, Chery, and Leapmotor—collectively sold 138,400 new vehicles across 31 European countries, a 65% year-over-year increase, capturing a market share of 12.01%. This marked the first time Chinese brands surpassed Japanese automakers—including Toyota and Honda—whose combined market share stood at 11.32%. It was also the first time in history that Chinese brands outsold Japanese brands in Europe in a single month. Meanwhile, Groupe Renault reported global sales of 1.17 million cars and light commercial vehicles for the first half of 2026, down slightly by 0.4% year-over-year. Within this period, the Renault brand saw a 2.6% sales increase in Europe, driven notably by strong performance of its electric R5 model. However, Dacia, the group’s budget brand, experienced an 8.7% sales decline, becoming a key drag on overall performance. Dacia’s electric lineup currently relies solely on the Spring EV, imported from China, which struggles to compete against Chinese EVs’ aggressive pricing. Facing mounting competitive pressure, Renault has proactively reduced low-margin sales through short-term rental channels in France, shifting its focus toward retail customers to safeguard profitability—a strategic adjustment effectively prompted by price competition from Chinese brands. Additionally, rising oil prices driven by tensions in Iran have accelerated European consumer demand for electric vehicles, further fueling the expansion of Chinese automakers in the region.