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BusinessChina EVs

Europe’s new EV power struggle sees Chinese giants seize record market share

Leading Chinese carmakers and an aggressive Tesla together command more than 13% of western Europe’s surging EV market

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BYD Dolphin Surf electric cars are parked in front of a BYD vehicle presentation in Berlin, Germany. Photo: Reuters
Themis Qi

Chinese electric vehicle (EV) makers and Tesla are locked in a tug of war across western Europe, taking advantage of rising consumer demand for battery-powered vehicles as volatile oil prices drive buyers away from traditional models.

Chinese brands – including BYD to Xpeng – saw their combined market share of new car sales across 18 Western European countries rise to a record 10.7 per cent in the second quarter of 2026, up from 5.7 per cent a year earlier, data from Germany-based consultancy Schmidt Automotive Research showed.
Tesla, the American EV giant, also increased its regional market share to 2.6 per cent in the second quarter, up from 1.7 per cent a year earlier, even as the market share for all US-based brands declined to 6.5 per cent.

“Tesla’s aggressive push from 2026, with prices falling to just above €30,000 (US$34,522) across many regional markets, has prevented a further fall for US brands,” analysts at Schmidt said in a report last week.

Tesla’s price cuts coincide with a broader push by Chinese carmakers to expand overseas. Facing sluggish demand at home and trade barriers imposed by the United States, they have increasingly targeted Europe as a major growth market.

BYD, China’s market leader, launched two luxury models in Europe in April and July under its Denza brand and aims to build 3,000 “flash-charging” stations across the region by March next year. It secured a market share of 2.8 per cent after delivering 91,500 units in the second quarter, surpassing Tesla and the historic British brand MG, which is now owned by China’s state-owned SAIC Motor, according to Schmidt.

In May, Leapmotor, the bestselling Chinese EV start-up, deepened local production ties with European giant Stellantis. In July, Geely, the second-largest EV maker in China, also announced plans to acquire a 34 per cent stake in a Ford plant in Spain for €221 million (US$254.32 million) to accelerate its localisation strategy.
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