Chinese automakers are steadily reshaping Europe’s hybrid car market, seizing a record 9.8% share of sales in August.
The surge highlights a strategic pivot by companies like BYD, SAIC’s MG, and Zhejiang Leapmotor as European Union tariffs weigh heavily on imports of fully electric vehicles.
While electric vehicle sales remain central to their expansion, hybrids are becoming an increasingly important tool for competing with established European brands such as Volkswagen and Stellantis.
The figures mark the fourth time in 2025 that Chinese companies have achieved a new peak in hybrid market penetration, underscoring their growing influence in the region’s electrified transport sector.
Hybrid sales rise as EV share falls
Chinese brands now hold 9.8% of Europe’s hybrid-vehicle market, according to Dataforce, while their share in the electric-vehicle segment eased slightly to 9.6% in August.
The change reflects an industry shift where plug-in hybrids are proving more attractive to cost-conscious buyers.
Across the European Union, the UK, and EFTA nations, battery-electric registrations rose 26% this year through August, with plug-in hybrids climbing 28%, compared with a marginal 0.4% increase for the broader car market.
This pattern is helping Chinese manufacturers secure a foothold. Affordable models such as BYD’s Seal 6 DM-i Touring station wagon and MG’s plug-in hybrid offerings are drawing interest from European drivers.
The trend has intensified since tariffs were introduced on Chinese EVs, making hybrids a competitive alternative that still allows these companies to expand in the region without the same trade barriers.
BYD and Leapmotor step up presence
BYD has become one of the leading beneficiaries of this market shift. Its electric vehicle sales in Europe more than doubled in August compared to last year, based on figures from Jato Dynamics, even as its hybrid models gained traction.
The company reported registering more than 3,000 vehicles in Germany in September, its first time surpassing that milestone. This pushed BYD’s hybrid share in Germany to 6.9%, with pure EVs accounting for 2.9%.
Zhejiang Leapmotor, another Chinese brand, is also capitalising on Europe’s appetite for cheaper models. Its compact T03 city car remains among the lowest-priced EVs in the market.
Analysts note that affordability remains a crucial factor in driving adoption, particularly in price-sensitive European markets. However, Leapmotor’s reliance on older designs means it will need new launches to maintain its momentum.
To address this, the company unveiled the B05 electric hatchback at the Munich auto show in September, a direct competitor to Volkswagen’s ID.3, signalling its intent to challenge European incumbents on their home turf.
MG turns focus to hybrids
MG, under state-owned SAIC, has shifted its strategy after facing higher EU tariffs on all-electric models. Once known for its competitive EV sales, the brand has redirected its European portfolio towards hybrids and plug-in hybrids.
Data from Jato Dynamics shows that MG’s fully electric sales dropped 16% in August, but the company is cushioning the impact through hybrid offerings that align more closely with current market demand.
This repositioning demonstrates how Chinese carmakers are adapting to the evolving European trade environment. By diversifying product lines and balancing hybrid with EV sales, they are maintaining growth despite regulatory challenges.
Europe’s electrified future under pressure
The competitive landscape in Europe’s electrified vehicle sector is tightening as Chinese brands adapt quickly to new regulations.
With European automakers struggling to keep pace in terms of affordability, Chinese manufacturers are leveraging their scale, pricing strategies, and new hybrid launches to capture market share.
The Munich auto show in September reinforced this trend, with BYD and Leapmotor showcasing new models tailored to European consumers.
Their presence signals a long-term commitment to the market, even as tariffs continue to shape trade strategies.
As the balance shifts between hybrids and EVs, the data shows that Europe is becoming a crucial battleground for the global auto industry.
The pace of adoption, coupled with regulatory adjustments, will determine how much ground Chinese carmakers can gain against established European brands in the coming years.
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