Key points
- Chinese automakers are significantly expanding their presence in the European market, challenging established brands.
- The IAA Mobility show in Munich highlights this intensifying competition, with a 40% increase in Chinese exhibitors compared to 2023.
- Chinese brands are leveraging their strengths in electric vehicles (EVs) and competitive pricing to gain market share.
- European automakers are responding with new EV models and a focus on competitive pricing to retain their market position.
The IAA Mobility show in Munich next week will be a pivotal showdown between Chinese and European carmakers, reflecting a rapidly escalating battle for market dominance in the European market. Chinese brands, spearheaded by the electric vehicle (EV) giant BYD, are aggressively expanding their presence, capitalizing on their competitive pricing and technological advancements.
This surge occurs at a time when European automakers are facing challenges in their home market and struggling to maintain their market share in China, the world’s largest automotive market. The competition is fierce, described by some industry analysts as a “Darwinian” price war.
BYD, which saw a tenfold increase in global sales between 2019 and 2024, reaching 4.2 million cars, is leading the charge. Joining BYD in Munich will be other major Chinese brands such as Changan, GAC, and FAW’s Hongqi, underscoring the significant increase in Chinese participation at the show. This expansion reflects a clear shift in the global automotive landscape, with China’s influence growing exponentially.
According to JATO Dynamics, Chinese brands almost doubled their European market share between January and July 2025, reaching 4.8%.
This growth is occurring despite recently imposed EU tariffs on Chinese-made EVs. Consultants suggest that this tariff barrier isn’t a significant deterrent, as the US market presents significant political challenges for Chinese automakers, making Europe a crucial target for expansion.
Chinese manufacturers are showcasing their latest models, including Hongqi’s new EHS series and Chery’s launch of the Omoda and Jaecoo brands in Germany. BYD will highlight its premium Denza brand and the Seal 6 DM-i Touring plug-in hybrid.
In response, European giants such as BMW, Mercedes-Benz, and Volkswagen are unveiling their own new EV models and emphasizing competitive pricing strategies. These initiatives are crucial for European automakers to defend their home turf and maintain competitiveness.
Industry experts warn that European manufacturers must adapt quickly and decisively to maintain their market share in the face of this aggressive challenge from Chinese competitors, who appear firmly committed to a long-term presence in the European market.
