Chinese Car Brands Reshape the European Motor Trade
The European car market is shifting gears, and not because of the usual contenders. Chinese car brands such as MG, BYD and Jaecoo are now outselling long-established names like Audi and Renault, creating a significant change that motor dealers cannot afford to overlook.
Data from JATO Dynamics shows that registrations from Chinese manufacturers increased by 121% year on year in August, reaching a 5.5% market share across Europe. More than 43,500 Chinese-built vehicles were sold during the month, surpassing Audi’s 41,300 and Renault’s 37,800 units.
From Underdog to Dealership Disruptor
Although around 40 Chinese marques now operate in Europe, just five – MG, BYD, Jaecoo, Omoda and Leapmotor – make up 84% of total registrations. This concentration shows that the most recognisable brands are building strong consumer trust across the continent.
MG, once a British motoring icon, registered more cars than both Tesla and Fiat in August. BYD also overtook Suzuki and Jeep, establishing itself as a key player in the plug-in vehicle market. As JATO analyst Felipe Munoz commented:
“European consumers are responding positively to the growing, competitive line-up from China’s car brands. It appears that these brands have successfully tackled the perception and awareness issues they have experienced.”
For dealers, this growing presence brings both opportunity and competition. Franchise operators can benefit from fresh partnerships and technology-led models, while independent retailers may face increased price pressure and shifting customer expectations.
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Electric and Hybrid Power Drive the Surge
Electric vehicles remain central to Europe’s transition towards low-emission transport. Battery electric vehicle (BEV) registrations rose 27% in August, reaching a record 20.2% share of the total market. Yet it is plug-in hybrids (PHEVs) that have shown the strongest rise.
PHEV registrations increased 59% year on year, with Chinese manufacturers playing a major role. Their combined PHEV sales jumped from 779 units in August 2024 to more than 11,000 this August.
This change reflects careful adaptation. With Europe introducing higher import tariffs on BEVs, many Chinese automakers have turned their attention to PHEVs as a more accessible option for buyers and a practical step for dealers who are still adjusting to full electrification.
Models such as the MG HS, BYD Seal U and Jaecoo J7 all featured in Europe’s top 10 PHEVs for the month, demonstrating that the appeal of Chinese hybrid vehicles extends far beyond price alone.
What This Means for Motor Traders
For the UK and European motor trade, this increase in Chinese car brands market share in Europe 2025 signals a major shift in stock planning, consumer behaviour and franchise strategy.
- Dealers can access affordable, well-equipped electric and hybrid vehicles that attract budget-conscious customers.
- After-sales departments need to invest in diagnostic tools and technician training to support new drivetrains.
- Established manufacturers face growing competition as Chinese brands expand their dealer networks and improve warranty and finance offerings.
MG and BYD’s rapid progress shows that buyers are increasingly comfortable with Chinese-made vehicles, particularly when supported by strong dealer service and warranty reassurance.
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