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In the dynamic world of electric vehicles (EVs), Chinese brands are making a significant impact in the European market. According to recent data, plug-in hybrid vehicles (PHEVs) saw a 7pp increase for Chinese brands in the EU market over the same period.
The start of the decade saw promising growth in the EV market share in Europe, but sales have recently hit a small speed bump. However, Chinese brands are entering the market with new, technologically advanced EVs, aiming to capitalise on this opportunity.
These brands are competitive in terms of technological capabilities and development speed, but many models introduced are not completely aligned with European expectations and demands. To stand out in Europe, they need a unique selling point (USP) that is easy to remember and communicate.
One brand that has made a notable impact is BYD, which achieved the largest share of the EU market for new battery electric vehicles (BEVs) and PHEVs in the second quarter of 2025. This was the first time BYD outsold Tesla in Europe, marking a significant milestone.
However, the road ahead is not without challenges. The halting of incentive programmes in some European countries slowed progress, but new or reintroduced schemes have helped re-energise electrification.
The recovery is regional, with different countries setting out different schemes alongside varying levels of natural market demand. For instance, the Chinese new-car market has roughly half of all new light vehicles sold as plug-ins, but in Europe, the picture is different. There appears to be a split between countries in the north and the southeast regarding Chinese brand performance in the EU. Germany and France, with their relatively high income and strong domestic carmaker presence, have shown relatively lower acceptance of Chinese brands.
In contrast, the Spanish used-car market has seen less change, with a 7pp gap compared to established brands in terms of average residual value (RV). However, this gap has improved from 16pp a few years ago, indicating a positive trend.
To gain insights into the future of Chinese EVs in Europe, the Autovista Group hosted a webinar titled "The road ahead: Residual value trends and the stock market today" on 14 October 2025 at 09:30 BST / 10:30 CET. The webinar discussed the impacts and mapped out the future of these vehicles in Europe.
Another webinar, "Cracking the code: Chinese EV brands entering Europe", was held by the Autovista Group to delve deeper into this topic. The recovery and future of Chinese EVs in Europe are complex, with each country having specialities, different policies, and subsidies, and different tastes.
To navigate this complexity, Chinese brands are leaning towards dealer networks instead of flagship stores for selling models. This allows new entrants to rely on the trust built by those dealerships and their greater coverage.
However, high sales targets can drive risky short-term cycle tactics, which can harm residual values. To maintain long-term success, it is crucial for Chinese brands to balance their growth ambitions with a focus on product quality and customer satisfaction.
Christian Schneider, director of valuations at Autovista Group, and Christoph Ruhland, director of business development at Autovista Group, were on the panel for the webinar, sharing their expertise and insights on this topic.
In conclusion, while Chinese brands are making significant strides in the European EV market, there are challenges to overcome. By focusing on product quality, unique selling points, and understanding regional preferences, these brands can continue to grow and thrive in Europe.
