Chinese electric car manufacturers captured 14.2% of western Europe's battery electric vehicle market in the first five months of this year — one in every seven EVs sold — as brands including BYD, Chery, SAIC and Xpeng push aggressively into European markets. The 171,800 sales represented a market share increase of nearly five percentage points compared with the same period in 2025, putting traditional European carmakers under intense pressure as they struggle to meet tougher emissions rules.
The Tariff Question
The surge comes despite EU tariffs of up to 35.3% on electric cars made by some Chinese manufacturers, on top of the standard 10% import duty. The UK — which has declined to follow the EU's lead in imposing extra levies — accounted for a quarter of Chinese BEV sales across the 18 biggest western European markets, making it the largest European market for Chinese cars. Italy accounted for a fifth of the total, though Matthias Schmidt, the founder of Schmidt Automotive Research, called that an "anomaly." He said one manufacturer, Leapmotor, sent thousands of its cheap T03 electric cars into the country to take advantage of purchase subsidies from the government. The subsidies meant the T03 was as cheap as €5,000 at one point, far below even the most keenly priced models sold by rivals.
The increase has added momentum to claims that Chinese carmakers are "dumping" state-subsidised vehicles in the EU and UK to gain market share, fuelling calls for quotas and higher tariffs to protect European manufacturers. Chinese manufacturers have sold more than 120 different models in Europe this year, compared with about 100 from European brands.
The Hybrid Loophole
Schmidt said China's share of the BEV market may have peaked, in part because manufacturers have shifted some of their focus to plug-in hybrid electric vehicles, or PHEVs, which combine a polluting petrol engine with a smaller battery and aren't yet subject to EU tariffs. "I think they are hitting a wall when it comes to pure electric models," he said. "They will prioritise PHEVs over the next 12 months given hybrids are omitted from extra tariffs placed on BEVs only. With that loophole set to close in the next 12 months, they will aim to maximise that gap in the door for as long as possible. Given shipping capacity remains limited, more PHEVs means fewer BEVs, which have likely peaked for now. BEVs will take priority again once local EU production comes online."
Oliver Blume, the chief executive of Volkswagen, last month called for that to change, saying European PHEVs were uncompetitive against Chinese equivalents. The German newspaper Handelsblatt has reported that the EU is considering extending the levies to PHEVs.
Tesla Rebounds
The figures also showed a rebound in Tesla sales across Europe. Tesla sales rose by 60% year-on-year, helped by increased demand for cheaper versions of its Model 3 and Model Y. The Model Y was the bestselling individual model across Europe during the period.
Why This Matters:
The surge in Chinese EV sales exposes the central contradiction in Europe's Green Deal: the continent needs rapid electrification to meet climate targets, but its industrial base can't compete on price with state-backed Chinese manufacturers. Tariffs may protect jobs in the short term, but they also risk slowing the transition away from fossil fuels and raising costs for European consumers who need affordable electric cars. The UK's refusal to impose extra levies has made it a test case for whether open markets or protectionism better serve workers and the climate alike. Meanwhile, the scramble to close the hybrid loophole shows how fragmented EU trade policy remains — and how quickly Chinese manufacturers can exploit gaps. Without a coherent industrial strategy that combines green investment, fair competition rules, and support for European carmakers to innovate rather than just survive, Europe risks losing both the climate race and the economic one.