Chinese carmakers overtake Japanese brands in Europe for first time in quarterly sales with 12.7% market share

For the first time over a full quarter, Chinese automakers outsold Japanese brands in Europe, reports Bloomberg. According to market research DataForce, Chinese-branded cars – mostly hybrids – saw registrations double from a year earlier in September to account for 12.7% of total sales in the region.

By comparison, Japanese manufacturers had a market share of 11.9%, while European brands continue to dominate both for now. Five years ago, Chinese brands accounted for barely 1% of European sales, but brands like BYD and Chery have rapidly estalibshed their positions since then.

This year’s Paris Motor Show saw around 20 brands in attendance showing off their models and announcing expansion plans for Europe. With fuel prices surging upwards in recent months, many Chinese brands are leaning heavily on electrified models to grab a bigger slice of the pie.

The European Union (EU) has tried to protect its automotive industry with tariffs on China-made electric vehicles (EVs) but these do not apply to hybrids (including those that can be plugged in), hence the push by Chinese brands.

Separately, the EU is considering new rules that favour locally made cars when granting subsidies and incentives, including tax benefits for company cars that tie in with the region’s high number of corporate and fleet customers. In light of this, Chinese automakers are setting up shop in Europe.

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