Chinese EV giant triples sales to tighten grip on Europe’s car market

Matt Oliver

Wed, February 25, 2026 at 5:00 PM GMT+9 3 min read

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BYD overtook Tesla as the world’s biggest seller of electric vehicles in 2025 - Peter Dazeley/Getty Images

Chinese giant BYD is tightening its grip on Europe’s car market with new figures revealing its sales tripled in the past year.

The company sold around 18,200 cars last month across Europe, up from about 6,900 in January 2025.

BYD’s share of the Continent’s car market rose from 0.7pc to 1.9pc over the same period, figures from the European Automobile Manufacturers’ Association (ACEA) showed.

It is the latest sign of growing demand for Chinese carmakers in Europe as they undercut traditional Western brands on price.

More broadly, fewer people are buying new cars. New car sales across all brands were down by 3.9pc in January from a year earlier.

That was driven by steep declines in registrations of petrol and diesel cars, which tumbled by 26pc and 22pc respectively across the EU, UK, Norway, Switzerland, Liechtenstein and Iceland.

By comparison, sales of plug-in hybrids, electric vehicles (EVs) and hybrids rose by 32pc, 14pc and 6pc respectively.

The latest figures come after BYD overtook Tesla as the world’s biggest seller of EVs in 2025. In the UK it has rapidly grown its sales to overtake popular brands such as Mini, Land Rover and Renault.

Another fast-growing Chinese carmaker is Jaecoo and Omoda owner Chery, which is not currently tracked by the ACEA figures.

Jaecoo’s SUV model, the Jaecoo 7, has rapidly become one of the UK’s most popular EVs.

However, the growing prevalence of Chinese brands is causing concern in Europe, with critics claiming the companies have benefited unfairly from substantial state subsidies at home.

A recent analysis by Rhodium Group estimated that the level of subsidy per car received by BYD was $347 (£257) compared with $39 for German rival Volkswagen and zero for Tesla.

Still, analysts argue that Chinese carmakers have also developed “fundamentally lower cost structures, driven by tighter control over their supply chains and a stronger focus on the China market”.

The EU has sought to crack down on the flood of cheap Chinese cars coming into the bloc by imposing tariffs on Chinese EVs.

It is also developing controversial “made in Europe” policies that will restrict subsidies to cars made on the Continent and require vehicle fleet operators to buy European.

Chris Heron, of EV trade association E-Mobility Europe, said: “As more Chinese EVs enter the market, pressure is intensifying.

“Their cost advantages are real: competition can sharpen innovation and value but it must be on a level playing field.

Mr Heron added: “Europe’s push for localisation incentives to strengthen its battery supply chain has merits – now we need to ensure new rules are not applied too rigidly.

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“Europe’s strength is smart, balanced regulation that protects resilience and competitiveness without sacrificing speed or affordability. The priority is clear: accelerate electrification while ensuring Europe can compete as a global destination for EV investment and production.”

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