Chinese Plug-in Hybrid Brands Capture 34% of European Market, Accelerating Expansion Amid Potential Tariff Threats

In June, Chinese-branded vehicles accounted for 11% of total new car sales in Europe, capturing 15% of the battery electric vehicle (BEV) market and a striking 34% of the plug-in hybrid electric vehicle (PHEV) segment. Across all hybrid models—including non-plug-in hybrids (HEVs)—Chinese brands held nearly 25% market share. Data shows that Chinese automakers’ market penetration is roughly equal in the BEV and HEV segments. Chinese automakers are accelerating their expansion in the European market, particularly in the PHEV segment. Analysts note this move aims to establish market presence and dealer networks ahead of potential additional EU tariffs on PHEVs, thereby mitigating future policy risks. In the UK, Chery’s JAECOO 7 SUV topped the national new car sales chart in March—just over a year after its launch and initial deliveries. Dubbed by some media outlets as the “Temu version of Land Rover” due to its design and positioning, the model reflects growing acceptance among European consumers of Chinese hybrid vehicles, especially amid limited charging infrastructure and relatively high prices for pure electric cars. Meanwhile, European automakers continue to lose ground in China as domestic brands intensify competition through technological advances and pricing advantages. German automotive and auto parts exports to China have declined by more than 25% year-on-year, highlighting mounting export pressures.