It seems that even the tariffs introduced by the European Union at the end of 2024 failed to stop the penetration of Chinese car manufacturers into the European market. Chinese brands recorded a record 12.8 percent market share in the all-electric vehicle segment in November, continuing the strong growth achieved throughout the year.
But their offensive is not limited to electric vehicles. In the fast-growing hybrid car category, Chinese manufacturers have strengthened their position again, surpassing a 13 percent share of the combined EU, EFTA and UK market, according to research firm Dataforce.
One of the main drivers of this export expansion is production overcapacity in China, where manufacturers face relentless price wars in the domestic market. In order to avoid that battle, they see the European market as a key opportunity for growth. Manufacturers have largely absorbed the additional costs of EU-imposed tariffs, while focusing on segments unaffected by the new tariffs, such as hybrid models, and non-EU markets such as the United Kingdom.
Impressive growth figures confirm the success of this strategy. According to separate data from Jato Dynamics, by October, the European sales of electric vehicles by Leapmotor recorded a growth of more than 4,000 percent, which was significantly contributed by the joint investment with Stellantis, the umbrella company of Peugeot, Fiat and Opel. At the same time, Chery’s Omoda brand recorded an increase in sales of electric vehicles of as much as 1,100 percent in the same period, as reported by Bloomberg Business.
While Chinese manufacturers are conquering Europe with their electrified models, domestic European automakers are trying to keep up. At the same time, they are increasingly lobbying for the relaxation of rules that foresee the phasing out of the sale of cars with internal combustion engines. In the latest attempt to protect one of the continent’s most important industries from a chaotic energy transition, EU officials have proposed scrapping a plan to ban the sale of new fossil fuel vehicles by 2035.
It is increasingly obvious that the pressure of Chinese competition is not only changing market dynamics, but also forcing European legislators to reconsider long-term strategies.