Chinese automakers, led by low prices, overtook their Japanese rivals in the European auto market for the first time in May. Growth was driven by BYD, China's largest electric-vehicle maker, whose overseas sales rose 70% in the first half of this year from a year earlier.
The Nihon Keizai Shimbun (Nikkei) reported Tuesday, citing May new-car sales data from the European Automobile Manufacturers' Association (ACEA), that "sales by five Chinese automakers—BYD, SAIC, Zhejiang Geely Holding Group, Chery, and Leapmotor—reached 138,410 units in 31 major European countries, up 65% from the same month a year earlier." The newspaper added that "sales by six Japanese firms—Toyota, Nissan, Suzuki, Mazda, Honda, and Mitsubishi—came to 130,424 units over the same period, down 3% from the same month a year earlier."
Starting with the April data, ACEA added three Chinese companies and included Sweden's Volvo in the results of its parent, Geely.
The low prices of Chinese cars played a major role in Chinese firms overtaking their Japanese counterparts from May. The European Union, viewing Chinese government subsidies as distorting the price competitiveness of Chinese-made electric vehicles (EVs), has imposed tariffs of up to 45.3% on Chinese-made EVs since October 2024.
Even with such high tariffs, Chinese cars remain highly price competitive. BYD's compact EV, the Dolphin Surf Boost, sells in Germany starting at a minimum of 26,990 euros (about 47.77 million won), 3% cheaper than the Renault 5 E-Tech, a similar-class vehicle from France's Renault.
Nikkei reported that "in addition to EVs, BYD is also expanding its exports of plug-in hybrid vehicles (PHEVs) to Europe," adding that "as a result, sales in 31 major European countries in May rose 2.4-fold from the same month a year earlier."
Chinese firms are also stepping up local production in Europe to avoid additional tariffs. Leapmotor plans to begin producing sport utility vehicles (SUVs) at a Stellantis plant in Spain, while Chery has established its European headquarters in Barcelona, Spain. Nikkei forecast that Chinese firms will continue to raise their market share in Europe as they expand their local production bases.
