Breakingviews - Luxury Vehicles Lead China's New Offensive in the EU
Chinese Automakers Target Europe: Chinese car manufacturers, led by BYD, are expanding into the European premium vehicle market despite high tariffs, achieving a 94% increase in sales in the first eight months of 2025.
Market Share Growth: Chinese battery electric vehicles have increased their market share in the EU to 7.6%, with a significant focus on premium segments, where they now account for over half of sales.
Competitive Advantages: Chinese brands leverage advanced technology, competitive pricing, and appealing features to attract European consumers, despite facing skepticism regarding brand heritage.
Future Strategies and Challenges: As European tariffs may increase, Chinese automakers are considering local production and adapting their strategies to meet regional preferences, while established European brands face declining margins and increased competition.
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