In May, Chinese automakers outperformed Japanese brands in the European passenger car market for the first time, underscoring the rapid shift in the competitive balance, according to Nikkei. According to ACEA data covering 31 European countries, five Chinese automakers-BYD, SAIC, Geely, Chery and Leapmotor — sold 138,410 vehicles, up 65% from last year, while sales of six Japanese brands, including Toyota, Honda, Nissan, Suzuki, Mazda and Mitsubishi, fell by 3% to 130,424 units.
This dynamic is particularly stimulated by BYD, whose sales of passenger cars abroad increased by 70% to 789,367 units in the first half of 2026, with overseas markets accounting for 44% of June sales. BYD expects exports to reach 1.6 million vehicles this year. Despite EU duties of up to 45.3% on Chinese-made electric vehicles, Chinese brands retain a significant price advantage and are increasingly using plug-in hybrids that are not subject to additional duties.
current automotive news in our Telegram channelThe reinstated electric vehicle subsidy programs in Europe, especially in Germany, Sweden and Italy, are also helping Chinese manufacturers, while Japanese automakers are suffering from a limited range of electric vehicles, despite their solid reputation in the field of hybrid vehicles. To strengthen their position and avoid duties, Chinese manufacturers are accelerating the implementation of plans for local production, in particular Leapmotor in Spain and the possible production of Chery cars at the Nissan plant in Sunderland.