China has cemented its status as a major player in the global car market as imports of vehicles and parts from the country into the EU has - for the first time on record - surpassed the number of European-made cars and components moving in the opposite direction, according to new analysis.
Exports of cars and parts from the EU to China fell 34 per cent last year to €16billion (£13.85billion), a report by consultancy EY found. Since 2022, exports have more than halved. At the same time, imports from China rose 8 per cent to €22billion (£19billion).
It means within a matter of years, an export surplus has turned into a deficit. There are now around 40 different Chinese car brands sold across Europe's new car market, with the top five players - MG, BYD, Jaecoo, Omoda and Leapmotor - accounting for 84 per cent of total Chinese registrations.
In Germany, Europe's automotive epicentre, China was only the sixth most important export market for German manufacturers in 2025. German exports do still exceed imports but the gap has shrunk significantly.
Since the peak in 2022, German exports to China have more than halved from around €30billion (£26bn) to €13.6billion (£11.8bn), while vehicle imports from China rose by two-thirds to €7.4billion (£6.4bn). If current trends continue, imports and exports could reach parity in 2026, the EY analysis said.
New data from leading vehicle leasing comparison site LeaseLoco shows Chinese manufacturers now account for 18.1 per cent of all UK lease enquiries in 2026 so far, up from just 9.2 per cent in 2025. That's a 97 per cent lease enquiry rise for Chinese cars in 12 months.
The shift is likely being driven by the fact Chinese manufacturers are focusing heavily on EVs and offering models with advanced technology and longer battery ranges at lower price points than many established European brands. Monthly lease prices for Chinese brands are, on average, around 27 per cent lower than those for European brands.
Chinese car brands increased market share to a record 5.5 per cent in August 2025. More than 43,500 units were registered by Chinese car brands that month - a 121 per cent year-on-year increase and more than the individual volumes recorded by several major European brands.
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China has flipped from car import deficit to surplus with EU, marking a historic trade reversal.
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This signals Europe's automotive dominance is under threat from cheaper, tech-advanced Chinese EVs.
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Chinese brands now hold 5.5% of European market share, up 121% year-on-year in August 2025.
