As we approach the midpoint of 2025, the momentum of Chinese brands has gathered more pace as they carve out their niche in the European market.
With the introduction of the “make origin” fields in GlobalData’s Light Vehicle Sales Forecasts, we now have clearer visibility into the growth trajectory of these brands than ever before. The results from Q1 2025 reveal a remarkable 87% increase in Passenger Car sales in Europe (EU, EFTA, UK) compared to the same period in 2024, while the overall market contracted by 0.4%.
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Chinese origin brand market share in Europe
Norway: a glimpse into the future?
Norway stands out as the leading market with the highest share of Chinese origin brands, at 9%, driven by BYD, MG and XPeng. This success can be correlated to Norway’s impressive adoption of Battery Electric Vehicles (BEVs), which is nearing 90%. The pressing question for legacy car manufacturers is whether Norway serves as a precursor to the broader European market as the continent transitions toward electric mobility. The eventual acceptance of BEVs in Europe is likely to support the presence of Chinese brands, which excel in producing battery-powered vehicles that the Norwegian market has embraced.
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By GlobalDataIn Spain, Turkey, and the UK, each reporting a Chinese brand share exceeding 7%, the landscape is equally promising. Notably, Spain and Turkey have attracted substantial investments from Chinese manufacturers, which are establishing local production facilities and revitalizing legacy brands such as Ebro to cater to local preferences.
Unlike Norway, these countries currently have lower BEV adoption rates, so Chinese brands are also offering Internal Combustion Engine (ICE) and Plug-in Hybrid Electric Vehicle (PHEV) options to appeal to a broader audience. For instance, BYD has adapted its strategy to include more Plug-in variants of its vehicles, catering to the slower-than-anticipated EV sales in certain European markets.
Thus, while conversations about Chinese automakers frequently highlight their strengths in the BEV sector, brands that have shown versatility with ICE and PHEV models have secured a substantial market presence in regions with lower EV adoption. Italy and Poland, in particular, have experienced rapid growth compared to the same quarter in 2024, driven by sales of ICE-based models from BYD, MG, and Chery. In the long term, brand familiarity gained through the use of their ICEs or PHEVs could act as a gateway vehicle, leading consumers in those countries toward fully electric models from these emerging brands.
Legacy brands retrain their appeal
The UK market, with a 7% share of Chinese brands in Q1 2025, illustrates the enduring impact of historical ownership on brand perception. MG, a brand with roots in the UK, has benefited from its legacy, despite its change in ownership. For emerging Chinese brands seeking to enter the European market, future partnerships and collaborations with established legacy carmakers could offer a valuable avenue to tap into brand history and existing consumer sentiment.
In contrast, France and Germany, with their strong domestic automotive industries, show a more subdued performance for Chinese brands, with shares of only 2.2% and 1.3%, respectively, in Q1. This resistance to growth can be partly attributed to strong consumer loyalty toward established local manufacturers.
Navigating the Premium market challenge
Our forecasts indicate that the Premium Car segment will pose a significant challenge for Chinese brands. In less price-sensitive markets such as Sweden, Switzerland, and Luxembourg—where Premium and Super-Premium vehicles account for over 40% of Passenger Car sales—the factors influencing consumer decisions extend further beyond pricing compared to elsewhere. As a result, the growth of Chinese brands in these markets could be more limited until their reputations are more firmly established. Similarly, the growth of Chinese automakers competing with traditional Premium brands such as Audi, BMW, and Mercedes-Benz, is expected to be slower than that of Chinese brands targeting cheaper segments, tempering our volume growth expectations for BYD’s YangWang brand, Nio and Hongqi.
Conclusion
The data from Q1 2025 largely presents an encouraging outlook for Chinese automotive brands in Europe. With strategic investments, adaptability to market needs, and a long-term focus on EV technology, these brands are poised for growth. However, challenges remain, particularly in markets with strong domestic loyalties and within the Premium segments. As the automotive landscape continues to evolve amidst tariffs, electrification, and other pivotal themes, GlobalData’s new “make origin” fields will provide valuable insights into how brands from various regions, including Chinese manufacturers, navigate these complexities.
Sammy Chan, Manager, Sales Forecasts, GlobalData
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
