China’s Car Revolution: The Numbers
China is now the world’s largest car market, and its momentum is relentless. In the first half of 2025, Chinese brands posted 9.2% sales growth at home, and nearly doubled their market share in Europe, hitting a record high. In Europe alone, Chinese brands captured 5.1% of the market—just behind Mercedes and ahead of Ford—driven by a handful of stars like BYD, Jaecoo, Omoda, Leapmotor, and XPeng.
The pace of change is staggering. In June, Chinese automakers outsold Mercedes-Benz. Names like BYD registered mind-boggling growth: 311% year-on-year in Europe, while Leapmotor, XPeng, and Chery’s upstart EV sub-brands posted big gains. Back in China, BYD leads the pack, but the battle is fierce, with Geely gaining a massive 89% and challenging long-dominant names.
Winners: Tech Titans and Value Disruptors
BYD — the undeniable leader. BYD’s rise is powered by smart pricing, aggressive expansion into Europe, and a suite of EVs and plug-in hybrids that tick all the boxes: tech, reliability, and affordability. The BYD Seal U is now one of the top-selling PHEVs in Europe, sharing the stage with icons like the VW Tiguan.
Geely — the breakout performer. Geely’s strategy of global partnerships (Volvo, Lotus, Polestar) and nimble manufacturing is paying off. Its domestic volumes have soared, and it’s quickly moving up the ranks as a serious global player.
Chery (Jaecoo & Omoda) — fast on the rise. Chery’s sub-brands focus on SUVs and crossovers, mixing hybrids with stylish ICE vehicles that offer real value. Their European push is gaining traction fast.
Leapmotor & XPeng — the new wave. Tech-savvy brands known for smart city cars and futuristic SUVs. XPeng, in particular, is gaining traction with premium models that rival European makes in both features and price.
MG — the legacy reboot. Once a British icon, MG now flies China’s flag as a global brand focused on electrification, affordability, and practicality. A leading performer in the UK, Europe, and Australia.
Losers: Tough Times for Global Giants
Volkswagen, Toyota, GM — feeling the squeeze. The Chinese market was once their growth engine, but now it’s a battleground. Domestic makers are building EVs cheaper and faster, eroding global brands’ market positions.
Hyundai, Kia, Honda — losing ground. Korean and Japanese companies face pricing and tech pressure from Chinese rivals updating models at breakneck speed.
Luxury brands — losing share. BMW, Mercedes-Benz, and Audi still sell strongly to wealthy customers, but Chinese premium EVs are closing the gap, offering tech-heavy alternatives at lower prices.
Why Are Chinese Cars Winning?
- Electrification: China leads the world in battery innovation, with NEVs making up over half of domestic sales.
- Scale and Speed: Chinese automakers can bring new models to market faster and at lower cost.
- Technology: Connected cockpits, autonomous systems, and AI safety are built-in expectations.
- Value: More kit for less money, plus long warranties, are luring global buyers.
- Global Strategy: They’re localising production, adapting to regional tastes, and capturing export markets rapidly.
What to Expect in the Coming Years
- More EVs and hybrids everywhere, with cheaper, longer-range batteries and growing charging infrastructure.
- Tech advancements will bring affordable autonomous driving, vehicle-to-grid integration, and smarter connected features.
- Legacy brands will face pressure to partner with or adapt to Chinese manufacturing strengths—or risk decline.
- Safety, quality, and brand image will keep rising, erasing outdated stereotypes.
- Tariffs and trade politics remain the main wildcard for global expansion.
Conclusion: The New Normal
Chinese automakers are no longer outsiders—they’re shaping the future of the car industry. The winners blend value, speed, and innovation, while the losers are those slow to adapt. The coming decade will be defined by fierce competition, fast tech cycles, and a global car market that looks a lot more Chinese than anyone expected even five years ago.