The European automotive market is experiencing a major shift. While total new car registrations dipped slightly in June 2025, it’s the explosive rise of Chinese automakers that is rewriting the industry narrative. With a staggering 91% year-over-year growth in the first half of the year (H1), Chinese brands are no longer fringe players—they’re contenders.
According to Jato Dynamics, chinese manufacturers sold 347,100 vehicles across Europe in H1 2025, earning a 5.1% market share. That puts them just behind Mercedes (5.2%) and ahead of Ford (3.8%). Even more remarkably, they outsold Mercedes in June, signaling a decisive shift in consumer preferences and industry power dynamics.
Key Takeaways from H1 2025 European Auto Market
- Chinese brands grew sales by 91%, capturing 5.1% of the European market.
- BYD led the charge, with EV sales up 143% in H1.
- BYD’s Seal U became the top-selling plug-in hybrid in June, tied with the VW Tiguan.
- Ford, Renault, and VW Group posted moderate growth, while Tesla’s sales dropped 33%.
- EV registrations across Europe exceeded 1 million units in a six-month period for the first time.
- Dacia Sandero remained Europe’s best-selling car, but sales fell 11%.
Chinese Brands Disrupt Market Hierarchy
The performance of Chinese manufacturers like BYD, Jaecoo, and Omoda has exceeded all expectations. Their aggressive market entry, competitive pricing, and expanding EV and PHEV portfolios have enabled them to eclipse historic Western players. BYD alone sold 41,270 electric vehicles in H1 2025—a 143% increase—placing it 12th among Europe’s top EV brands, ahead of Cupra and Ford.
Plug-in hybrids have also played a critical role. In June, BYD’s Seal U matched the VW Tiguan in PHEV sales, a striking sign of consumer shift toward Chinese technology and design.
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EV Boom: Over 1 Million Units in Six Months
Despite Tesla’s decline, the European EV market is booming. In H1 2025, EV sales jumped 25% year-over-year to 1.2 million units, marking the first time that milestone has been surpassed in a half-year span.
Top-Selling EV Brands in H1 2025:
| Rank | Brand | Units Sold | YoY Growth |
|---|---|---|---|
| 1 | Volkswagen | 135,427 | +78% |
| 2 | Tesla | 109,262 | -33% |
| 3 | BMW | 94,658 | +15% |
| 4 | Audi | 74,561 | +53% |
| 5 | Skoda | 71,789 | +147% |
| 6 | Renault | 64,402 | +58% |
| 7 | Kia | 55,915 | +60% |
| 8 | Mercedes | 55,428 | +5% |
| 9 | Volvo | 49,219 | -32% |
| 10 | Hyundai | 46,380 | +33% |
Tesla’s Struggles Amid Market Expansion
Tesla, once the EV market leader, is seeing its dominance wane. In H1, its sales fell by 33%, and the Model Y—previously Europe’s best-selling car—failed to crack the top 10 overall in June. Despite a facelift earlier in the year, the Model Y sold only 68,801 units in H1, a steep decline compared to previous performance.
Meanwhile, new entrants like the Skoda Elroq, Renault 5, and Kia EV3 have quickly climbed the EV rankings, benefiting from strong early reception and competitive positioning.
Market Winners and Losers
Aside from the Chinese surge, several established groups posted gains:
- VW Group: +3%
- Renault: +6%
- BMW: +4%
- Ford: +6%
On the losing end:
- Tesla: -33%
- Stellantis: -9%
This shift highlights changing consumer priorities, especially around affordability, innovation, and availability in the EV and PHEV segments.
Internal Combustion Still Holds Ground
Despite the EV boom, traditional models haven’t disappeared. Dacia’s Sandero remained the best-selling car in Europe with 128,800 registrations, though it was down 11%. Its cousin, the Renault Clio, posted 122,500 units (+7%), proving ICE vehicles still attract significant demand.
Other ICE favorites like the Peugeot 2008 and several Volkswagen models (T-Roc, Golf, Tiguan) also retained strong positions in the overall rankings.
The Road Ahead: More Disruption Coming
Chinese automakers are signaling this is only the beginning. With more localized production, dealership expansion, and model diversification on the horizon, their market share is likely to increase further in the second half of 2025.
As consumer openness to new brands grows—especially in the EV space—traditional European and American brands will need to rethink their strategies to maintain relevance. The rise of BYD and its peers isn’t just a trend. It’s a redefinition of the European car market.
What This Means for Europe’s Automotive Landscape
The stunning growth of Chinese automakers like BYD in Europe signals more than just strong sales—it represents a changing of the guard. Established brands are no longer guaranteed dominance. The challenge now is whether they can adapt quickly enough to defend their turf.
Specifications Snapshot – BYD in H1 2025
| Metric | Value |
|---|---|
| Total Units Sold | 41,270 |
| EV Sales Growth (YoY) | +143% |
| Market Share (All Brands) | ~1.4% |
| Top PHEV Model | BYD Seal U |
| PHEV Sales (June) | Tied with VW Tiguan |
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