Chinese auto manufacturers are aiming to make major inroads in Europe. They already account for around 6% of total car sales and close to 14% of electric vehicle (EV) sales. But to achieve their ambitions, they will need to navigate a European market that is highly fragmented, tightly regulated, and congested, with sales growth at a standstill.
Leading Chinese vehicle manufacturers are all increasing their export businesses aggressively, says Xin Gao, a partner at consulting firm Corporate Value Associates (CVA).
Top supplier Chery exported more than 660,000 cars in the first six months of 2025, while BYD shipped over 520,000, according to Gao. Both look set to export a million vehicles by the end of the year. And Europe will be a key destination.
To examine the likely impact of Chinese original equipment manufacturers (OEMs) and their captive finance companies on the European auto market, the Qorus Mobility Community and CVA hosted an online event that featured key industry specialists. Alongside Gao were CVA’s Markus Collet as well as Ronny Seidel from BNP Paribas and Christophe Di Perna from Allianz Partners.
Executives polled at the event are readying themselves for a surge in sales of Chinese vehicles in Europe. Nearly half of them expect Chinese suppliers to account for 25% to 35% of vehicle sales in Europe by 2030 while over a third believe they’ll secure 15% to 25% of the market. Cost positioning will set Chinese OEMs apart from competitors, say the executives. Other likely differentiators will be battery technology and innovation, as well as speed to market.
Key takeaways:
- Chinese OEMs are investing heavily in European sales, support infrastructure, and wider automotive ecosystems, including partnerships with local banks and insurers.
- Vehicle manufacturers from China enjoy strong advantages in manufacturing scale, speed to market, and EV and battery technology.
- Chinese captives bring sophisticated capabilities in product innovation, integrated financing, risk management, and fully digital customer journeys.
- Europe is a challenging market for new entrants because of its stagnant growth, unpredictable regulation, and fragmentation across countries, regulations, and financial services models.
- High total cost of ownership, including insurance, maintenance, and battery repair or replacement, can quickly erode the appeal of competitively priced Chinese vehicles in Europe.
- Chinese OEMs that pair their innovation and manufacturing strengths with local insight, financing, and service through partnerships with banks, insurers, and leasing firms will be best placed to turn Europe into a strategic stronghold.
Check out the event highlights
