Breakingviews - Luxury Vehicles Lead China's New Offensive in the EU

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 03 2025

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Source: Reuters

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.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.