Electrified vehicles are driving Europe's automotive market as Chinese brands achieve a record share.

      Battery-electric and hybrid vehicles have primarily driven the growth of the European market, with an increasing number of sales attributed to Chinese brands. So far this year, one out of every five new cars registered in the European Union was fully electric, and the proportion of sales from Chinese-branded models has approximately doubled over the past year.

      Data released on July 23 by the European Automobile Manufacturers’ Association (ACEA) indicates that electrified powertrains—including battery-electric, plug-in hybrid, and conventional hybrid cars—have been crucial in maintaining growth in Europe’s car market. Total EU registrations have risen nearly 4% year-to-date to around 4.7 million cars, marking a modest recovery for a market that saw stagnation or decline for much of 2025.

      The growth is not evenly distributed. Together, petrol and diesel vehicles have fallen below 30% of EU sales, with both fuels declining by over 16%, while all types of electrified vehicles are on the rise. Battery-electric cars made up about 20% of EU sales, a climb from about 15% the previous year, with registrations increasing by 35.7%, according to ACEA.

      Looking at a broader range of 17 European markets tracked by New AutoMotive, more than 1.24 million battery and plug-in cars were registered in the first half, reflecting a 33.7% increase from the same timeframe in 2025. The growth accelerated in June, with approximately 275,000 fully electric registrations in those markets, representing a 39.5% increase and raising the monthly share of battery-electric vehicles to 25.6%.

      The adoption of electric vehicles varies significantly by country: Norway experienced a 96.5% electric share in June, Denmark 79.1%, while Germany led in overall volume and Poland hovered around 5%. Hybrids continue to be the largest category, making up nearly 38% of EU registrations and growing approximately 12% this year. Plug-in hybrids captured nearly 10% market share and increased by about 25%, aided by new model launches from both Chinese and European manufacturers.

      Collectively, these three electrified categories now represent a clear majority of new car sales in the bloc, contrasting sharply with the petrol-dominated market of just a few years ago.

      The significant narrative revolves around the brands responsible for these sales. Chinese manufacturers achieved a record 10.9% share of the European market in June, with 150,272 registrations, marking a 118% year-on-year increase, roughly double their share from a year ago. In the first five months, the top five Chinese groups registered over 619,000 cars across the EU, the UK, and the EFTA bloc, largely at the expense of traditional carmakers who once considered this segment secure.

      This growth is not solely confined to electric vehicles. Chinese manufacturers have also embraced plug-in and conventional hybrids to evade the EU tariffs reaching up to 45% on battery-electric imports from China, tariffs that do not apply to hybrids. Currently, around a quarter of all hybrid and plug-in hybrid sales in the EU feature a Chinese badge.

      BYD has notably benefited from this trend, surpassing Tesla in sales across Europe from the year up to May, recording 135,307 registrations compared to Tesla's 118,068, according to Dataforce, with BYD's European volumes more than doubling. In June, MG was slightly ahead of BYD among Chinese brands, with fewer than 400 units separating them.

      SAIC’s MG has remained the largest Chinese seller by volume, while newer entrants have begun to grow from a smaller base. Leapmotor saw its registrations increase by more than 550% year-to-date, while Chery’s Omoda and Jaecoo brands have seen multiple times growth, and Chery launched deliveries of its namesake brand in Europe in June, beginning with the Tiggo 8 SUV.

      In contrast, Tesla has seen its market share in the EU fall to about 2%, trailing BYD, as its refreshed Model Y faces tougher competition and reduced demand. Tesla does not provide separate figures for Europe in its quarterly reports, and its share has decreased from higher levels in previous years.

      ACEA’s forthcoming monthly report will reveal if this electrified momentum persists into the second half of the year, and whether Brussels' tariff barriers will impede the ongoing advance of Chinese manufacturers, which increasingly operate under hybrid branding instead of solely electric.