Chinese Brands Capture 12.7% of European Car Market, Overtaking Japanese Rivals
Key Facts
Chinese-branded cars overtook their Japanese counterparts in the European car market for the first time over a full quarter, after registrations nearly doubled from a year earlier in September, according to a Bloomberg report published by The Japan Times. Chinese brands held 12.7% of regional sales during the month, compared with 11.9% for Japanese manufacturers. The gap reflects a new level of competition in a key market for automakers, as Chinese brands expand beyond their domestic market. September’s gains came amid an increase in Chinese registrations over the three months through that month, which nearly doubled year on year. The figures in the report do not offer a single explanation for the shift, but place the growth of Chinese brands in the context of a broader expansion in imports of cars made in China.
Hybrid car categories are emerging as one avenue for this expansion. Chinese brands’ share of Europe’s conventional hybrid market rose to 14% in the first half of 2026, from 2% in 2024, according to data from the European Automobile Manufacturers’ Association, or ACEA. In plug-in hybrids, their share reached 25%, compared with 2% in 2024. Their growing presence in both categories shows that Chinese competition is not limited to fully electric cars, but also includes hybrid options in a market where electric technologies are advancing at varying speeds. China’s Ministry of Commerce also said in October that the European Union imported 302,000 hybrid cars from China in 2025, compared with 107,000 in 2024. It added that the new understanding between the two sides allows imports to increase from the 2025 level.
The growing Chinese presence coincides with a shift in the structure of the European Union market and its sources of supply. The share of cars produced within the bloc fell to a record low of 68% of its sales in the first half of 2026, while the share of cars made in China rose to 9%, according to ACEA. Over the same period, the value of car imports into the bloc increased 15.6% and their volume rose 16.1%, while exports fell 12% by value and 5.9% by volume. China was the main driver of the increase in imports: the value of Chinese car imports jumped 70.5% to 10.5 billion euros, and their volume exceeded 700,000 cars. These figures show an expansion in the flow of Chinese cars into Europe alongside a decline in European exports, though they do not on their own establish the effect on companies or prices.
Cars made in China accounted for 7% of EU sales in 2025, according to ACEA, before their share reached 9% in the first half of 2026. New passenger car registrations in the bloc rose 5.7% from the start of the year through September, while fully electric cars had a 22.7% share, according to the association. In data for January to August, fully electric cars’ share reached 21.7%, up from 15.8% a year earlier, while conventional hybrids accounted for 36.6% of the market. These indicators place the growth of Chinese brands within a market where electric and hybrid car sales are expanding alongside an increase in total registrations. They also show that the reference periods differ between data on China’s share and indicators for engine types, some of which cover the first half or the first eight months of the year.
ACEA Director General Sigrid de Vries warned that sudden market disruption and price wars could harm the European economy. She said that "a sharp and sudden destabilization of the market in Europe, alongside price wars, would be highly disruptive to the European economy as a whole." The association added that the announcement of the understanding between the European Union and China could help manage the market’s transition to a greater Chinese presence. The warning comes as production and import shares shift and Chinese brands expand in hybrid categories. Despite its decline, the share of cars produced within the bloc remains higher than that of cars made in China in the first-half 2026 data.