Chinese carmakers gain record share of hybrids in Europe

Chinese carmakers gain record share of hybrids in Europe

Bloomberg — 2025-10-02

Automotive Industry

Chinese carmakers grabbed a record 9.8% of Europe’s hybrid-vehicle sales in August, making further strides in a segment that’s gaining importance among car buyers and manufacturers.

The monthly showing marks the fourth time this year that Chinese brands have reached a new peak for hybrid-car share, based on figures from researcher Dataforce. They captured 9.6% of the electric-vehicle market in August, down slightly from July. 

BYD Co, SAIC Motor Corp’s MG and other Chinese manufacturers have targeted Europe’s growing market for electrified vehicles, putting pressure on incumbents like Volkswagen AG and Stellantis NV with affordable, competitive models. 

Through August this year, battery-electric registrations rose 26% across the European Union, UK and EFTA countries, while plug-in hybrid sales advanced 28%, according to the European Automobile Manufacturers’ Association. That compares with a 0.4% rise across all power-train segments.

Chinese automakers have pivoted to selling more hybrids this year, after EU officials slapped tariffs on EVs made in the Asian country. Yet BYD and others have increased EV sales too, while they build manufacturing capacity in the region to sidestep the new duties.

BYD’s EV sales in Europe more than doubled in August from a year earlier, according to separate data from automotive advisory Jato Dynamics. Zhejiang Leapmotor Technology Co made exponential gains.

Leapmotor is offering one of the cheapest battery-electric vehicles in the market, the T03 city car, said Felipe Munoz, an analyst with Jato. “Affordable BEVs are exactly what consumers are demanding in Europe, and until now very few makers have been able to deliver them,” he said.

That said, the TO3 is an older model with basic features, and Leapmotor needs to introduce fresh designs to keep the momentum going, Munoz said. The company, which has partnered with Peugeot and Fiat parent Stellantis in Europe, presented its B05 electric hatchback at the Munich auto show in September, a competitor to Volkswagen’s ID.3.

BYD was also present in Munich, unveiling its Seal 6 DM-i Touring station wagon, a plug-in that’s part of its hybrid push in the region.

The momentum has continued for BYD, which said late Wednesday that it registered more than 3,000 vehicles in Germany during September, the first time it’s hit that milestone. The company now has 6.9% of the country’s hybrid market and 2.9% of pure EVs.

While Leapmotor and BYD have pressed forward with EVs, MG has backed away after its state-owned parent was hit with the highest EU tariffs.

The British brand, part of SAIC for nearly a decade, is focused on hybrid and plug-in hybrid models in Europe, while all-electric sales slid 16% in August, according to Jato.

“They want to depend less on pure electric cars,” Munoz said.