Chinese carmakers boost sales of internal combustion engine vehicles in Europe amid slumping interest in electric cars
Chinese electric cars are losing ground in Europe, but Chinese carmakers are increasing their market presence. The bet is now on hybrid and conventional petrol models to compensate for the slowdown in EV sales.
Here's What We Know
According to Dataforce, more than 150,000 vehicles from Chinese brands were registered in Europe in the first quarter of 2025 - a record for such a period. At the same time, the share of electric vehicles was only 30 per cent, the lowest since the beginning of 2020.
As Bloomberg notes, Chinese companies had previously been actively promoting electric cars in Europe, seeking to carve a niche in the fast-growing segment and take advantage of EU climate initiatives. However, everything changed after the EU raised duties on Chinese electric cars to 45 per cent due to unfair competition and state support for Chinese companies.
MG (owned by SAIC Motor) sold almost 47,000 hybrid, PHEV and petrol models in the EU in the first quarter - twice as many as at the start of 2024. EV sales, meanwhile, halved. At the same time, BYD began selling plug-in hybrids en masse in the EU and UK for the first time.
Dataforce expert Benjamin Kibies said increased duties are only part of the equation. Equally important is the slowing demand for electric cars and the growing popularity of hybrids.
BYD's head of Europe, Maria Grazia Davino, said at an industry event in Stuttgart last month that the company's strategy is now built on two pillars: electric cars and hybrids. That said, BYD is not looking to dump or engage in a price war, preferring to play the long game. The company is already building plants in Hungary and Turkey to circumvent duties and is considering launching a third facility in Europe.
Source: Bloomberg
