Chinese carmakers have achieved their best month in history in Europe, with their market share surpassing that of Korean carmakers for the first time.

Chinese carmakers have achieved their best month in history in Europe, with their market share surpassing that of Korean carmakers for the first time.

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Thanks to robust growth in the fields of pure electric and hybrid vehicles, Chinese car manufacturers have achieved their best-ever monthly performance in the European market.

According to research firm Dataforce, in September this year, led by BYD, SAIC MG, and Chery Automobile, Chinese companies' market share in the overall European passenger car market climbed to a record 7.4%. This milestone performance was due to Chinese carmakers continuously expanding their dealership networks and launching a series of competitively priced plug-in hybrid and pure electric models.

This growth momentum was especially pronounced in the UK market, where sales accounted for nearly half of all Chinese manufacturers' sales in Europe. In September, BYD's sales in the UK surged sixfold month on month.

According to Schmidt Automotive Research, in the 18 markets of Western Europe, Chinese brands' share has reached 8%, also surpassing Korean brands for the first time. Dataforce analyst Benjamin Kibies stated:

"We are seeing the continued rise of Chinese brands' penetration in the European market."

The UK Market Becomes a Key Growth Engine

Chinese brands' car sales in the UK skyrocketed in September, partly due to the country's biannual license plate renewal cycle, but more fundamentally due to increased brand appeal and a relatively mild trade environment.

"The UK market is critically important," Kibies said. "Chinese brands are performing very strongly in the UK."

Data shows that BYD's sales in the UK in September increased sixfold compared to the previous month, while the formerly British brand MG also achieved nearly equivalent growth. Moreover, Chery's Omoda and Jaecoo brands have also established a foothold in the market with their new hybrid SUVs. According to a previous article by Wallstreetcn, BYD's sales in Europe in September soared by 398% year on year, with its market share rising from 0.4% a year ago to 2%.

One of the key strategies for the success of Chinese brands has been their targeted entry into fast-growing market segments, especially in plug-in hybrid vehicles (PHEVs). These models offer lower running costs and do not rely entirely on charging infrastructure, making them increasingly attractive to many consumers.

According to data from the European Automobile Manufacturers' Association, sales of plug-in hybrid vehicles across Greater Europe surged by 62% in September. Dataforce data also shows Chinese brands' share in that month's PHEV market jumped more than 7 percentage points month on month to 20%; their share in the pure electric vehicle market also rose by 1.7 percentage points to 11%.

"Consumers are clearly turning towards plug-in hybrids—and for now, only Chinese brands are offering these products at reasonable prices," analyst Michael Dean pointed out:

"The question now is whether European automakers can ramp up PHEV production quickly—and cost-effectively—enough to compete."

Changing Market Landscape, Pressure on European Carmakers

In the Chinese market, where electric vehicles dominate, European brands have already 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' share in the 18 Western European markets has reached 8%, surpassing Korean brands for the first time.

To consolidate their market position, Chinese carmakers are actively expanding their sales networks and rolling out numerous 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, basically covering most parts of the UK.

"They're buying the market—offering dealers extremely attractive terms to represent these brands," said Bernstein analyst Stephen Reitman:

"Dealers value the product offering, and consumers are impressed by the products themselves."

On the product front, the new generation of Chinese plug-in hybrids offers longer pure electric ranges, fast-charging capabilities, and rich standard features, all at prices below those of European competitors. New models launched this year include Chery's Omoda 7, Jaecoo J8 SUV, and BYD's Seal U DM-i SUV and plug-in hybrid Dolphin. Last week, Geely unveiled 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 part of MG, BYD, and Leapmotor's September sales came from "tactical registrations," meaning vehicles sold to leasing companies or dealers.

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