Chinese brands surge ahead in European EV market share

In recent months, Chinese electric vehicle brands have significantly increased their presence in the European automotive market, with their market share reaching 11% specifically in the electric vehicle (EV) segment. Reports indicate that sales of Chinese vehicles surged to approximately 65,800 units in May 2025, climbing sharply from just 31,200 units in the same month the previous year. This growth occurred despite the European Union's imposition of tariffs on Chinese EVs, which highlights the strong demand for these vehicles and the competitive pricing they offer. The momentum is partly attributed to Chinese manufacturers expanding their product offerings to include alternative powertrains, such as plug-in hybrids and full hybrids aimed at broader market appeal. Investment banks predict that the increasing availability of affordable EVs from Chinese brands will notably challenge established European manufacturers, particularly Stellantis and Renault, whose own affordable EV models may struggle to compete both in price and profitability. Furthermore, the potential decision by China regarding minimum pricing for its EV exports, due by July 9, could also influence this growing market dynamic. The situation remains fluid, but it suggests possible disruptions for legacy automakers as consumer preferences continue to shift towards more competitively priced and innovative electric vehicle options from Chinese manufacturers, leading to a strategic reassessment among European brands.