In May, every 10th new car sold in Europe was Chinese

Chinese cars made up more than one in ten new purchases in Europe for the first time last month, as consumers flock to models that offer better features for less money.

Hybrid and plug-in hybrids like the MG S9 sport utility vehicle helped Chinese automakers take 11% of European sales in May, according to analysts at Dataforce. They captured nearly a quarter of all new hybrid car sales, while demand for fully-electric cars from China also rose.

Chinese carmakers "recognized early that European consumers were not ready to go fully electric and adapted their portfolios accordingly - faster than most Western incumbents," said Julian Litzinger, an analyst at Dataforce. "The most powerful driver, however, is value: Chinese brands offer consumers significantly more car for their money."


Comparing two seven-seater SUVs, buyers of the China-made MG S9 make savings and get more horsepower compared to the VW Tayron, according to Litzinger.

Manufacturers like BYD and SAIC Motor, whose formerly British MG brand is leading sales in the region, are pushing aggressively into Europe as an outlet for a car glut at home. Despite steep discounts and quick succession of new models, sales in China are plummeting as consumer spending sags under the weight of a housing crisis and a fragile jobs market.

The European Union has sought to protect local carmakers like Volkswagen AG, Stellantis NV and Renault SA, though Brussels' additional tariffs that started in 2024 only apply to fully-electric vehicles made in China. With a lower trade barrier for hybrids, delivery gains of these types of cars are outpacing battery-only vehicles.

Chinese carmakers can access a range of domestic subsidies including grants, cheap land and financing that lower their cost base. They're also able to benefit from state support in Europe. In Germany, the government has started a new incentive program for zero-emission vehicles worth $3.4 billion.