Chinese car brands captured more than 11% of the European auto market in July 2026, extending a rapid expansion led by MG and BYD. Their rise has been supported in particular by plug-in hybrid vehicles, with Chinese marques accounting for roughly one in every three PHEVs registered in Europe during the month.
Dataforce figures reported by Bloomberg put Chinese-brand registrations in Europe at about 663,000 in the first half of 2026, up 107% year on year. Their market share rose from roughly 4.5% in the first half of 2025 to around 9.2% in the same period of 2026, before moving above 11% in July.
The product mix matters because the European Union’s additional duties apply to battery-electric vehicles made in China, while plug-in hybrids are not currently subject to the same regime. German media have reported discussion of extending the tariffs to PHEVs, but the European Commission has not announced such a measure.
MG remained the largest Chinese name by European registrations in the first half, although BYD has been closing the gap. Omoda-Jaecoo and Leapmotor are also growing from smaller bases. Citi estimates that SAIC Motor, MG’s owner, together with BYD and Chery, accounts for about three-quarters of Chinese-brand sales in the European Union.
The expansion is not uniform across every company. NIO registered only 18 cars in Germany over the first seven months of 2026, about 89% below its prior-year result, and recorded eight registrations in the Netherlands. That contrasts with its wider business: NIO reported second-quarter deliveries of 107,658 vehicles, up 49.4% year on year, alongside revenue of CNY 32.14 billion.
Competition is set to widen further in 2027, when Xiaomi Auto is preparing to enter Europe. At IFA Berlin 2026, Xiaomi signed memorandums of understanding with eight German dealer groups covering a future sales and service network. Its arrival would come as Chinese brands have already established a double-digit presence in the region’s auto market.
