Chinese brands hit record 11.2% share of European car market

Fully electric vehicle sales across Europe jumped 51% year-over-year in July, pushing EVs to a 25% share of the new-car market, according to preliminary data from market analyst Dataforce. The figures mark a sharp acceleration from an already strong first half of the year, with EV sales now up 37% through the first seven months of 2026.ilsole24ore+1

Chinese Automakers Break Through

Chinese brands reached a record 11.2% market share in Europe during July, with combined sales rising 107% compared with the same month a year earlier. BYD led the pack, followed by Chery and SAIC, the parent company of MG.electriccarsreport+1

Several manufacturers posted extraordinary growth. Leapmotor, operating in partnership with Stellantis ↗ 0.77%, increased sales by 294% to 9,306 vehicles, while Xpeng ↗ 4.04% climbed 270% to 5,244 units. Chery's brands grew 202% and BYD, including its Denza line, rose 150%. The expansion underscores how quickly Chinese automakers are converting small European footholds into meaningful market presence — Changan went from seven vehicles sold in July 2025 to 1,249 a year later.electriccarsreport

Tesla Slumps, Traditional Brands Split

Tesla ↗ 0.37% had a difficult July in Europe, with sales falling 36% year-over-year. Reuters reported that Tesla's registrations were mixed across the continent, with gains in France and Denmark offset by sharp declines in Norway, Spain and Italy. The results follow an otherwise strong 2026 rebound for the company, which saw EU sales rise 77% in the first five months of the year, according to earlier data from ACEA.reuters+2

Among traditional automakers, performance diverged. Volkswagen Group fell 3%, Ford ↗ 0.14% dropped 16%, and Hyundai-Kia declined 8.5%. Mercedes-Benz stood out with registrations up 4.7%.electriccarsreport

Affordable EVs Drive the Shift

The broader European new-car market grew 4.1% in July, with year-to-date registrations up 5.7%. Higher fuel prices have helped encourage more buyers to consider electric alternatives. Renault benefited from its expanding lineup of smaller EVs — the Renault 5 E-Tech ranked third among electric vehicles in July, while the new Twingo placed 12th, just behind the Tesla Model Y.ilsole24ore+1

The overall best-selling car in Europe remained the Dacia Sandero, a reminder that conventional models still account for a substantial share of demand even as the electric transition accelerates.electriccarsreport