Key facts
- Chinese automakers surpassed Japanese brands in European passenger car sales in May 2026.
- BYD's first-half 2026 overseas passenger vehicle sales increased by 70%.
- The UK has become a significant market for Chinese brands due to its open trade policy.
- Hybrid-electric vehicles are the most popular powertrain in the EU, while BEV sales are growing.
- EU tariffs on electric cars range from 17% to 38%, with hybrids exempt.
Chinese automakers have surpassed Japanese brands in European passenger car sales for the first time in May 2026, driven by strong performance from companies like BYD. BYD's overseas sales in the first half of 2026 jumped 70% year-on-year, with the UK emerging as a key market due to its open trade policy and lack of new tariffs on electric vehicles.
Brands such as Chery's Omoda and Jaecoo, and SAIC's MG, are also making significant inroads in the UK. While the EU has imposed tariffs ranging from 17% to 38% on electric cars, hybrids are exempt, creating an incentive for Chinese manufacturers to sell these models. Despite these tariffs, BYD's sales in the EU in August 2025 were triple that of the previous year, surpassing Tesla.
Hypbrid-electric vehicles continue to dominate the European market, accounting for 34.7% of sales by July 2025, while battery-electric vehicle registrations saw a 15.6% increase. Plug-in hybrid sales also experienced strong growth. This shift in powertrain preference, coupled with competitive pricing and advanced technology from Chinese manufacturers, is disrupting the established European automotive landscape.