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In a recent webinar titled 'Cracking the code: Chinese EV brands entering Europe,' the Autovista Group discussed the growing impact of Chinese electric vehicle (EV) brands in the European market.
China, with its significant market share for EVs, is eyeing European aspirations for its electric vehicles. Roughly half of all new light vehicles sold in the country are plug-ins, a figure that speaks volumes about China's commitment to electric mobility.
The performance of Chinese brands in Europe has shown marked improvement. For instance, the average gap between new Chinese brands and more established marques in Germany's RV performance has narrowed from a 16 percentage point (pp) gap a few years ago to just 9 pp. This significant improvement is a testament to the strides Chinese brands are making in the European market.
However, the story is not uniform across Europe. Spanish used-car markets have seen greater consistency in the value retention of Chinese brands, with an average 7 pp gap. On the other hand, regional preferences vary significantly, with the Chinese market valuing a touch-screen central infotainment system for a majority of controls, while Europe still appreciates physical buttons and dials.
The Chinese automaker BYD has established itself most strongly in the European BEV market in recent years. Its success varies by country due to factors such as local production facilities, market conditions, consumer preferences, and regulatory environments. For instance, BYD plans to establish plants in Hungary and Turkey.
Selling models have taken a step forward as brands lean towards dealer networks and away from flagship stores. However, high sales targets can drive risky short-term cycle tactics, which can harm residual values (RVs).
PHEVs have seen a 7 pp increase over the same period in the EU. However, the growth of the EV market in Europe has slowed recently due to the halting of incentive programs in some countries. Germany and France, with their high income and strong domestic carmaker presence, present unique challenges for Chinese brands.
Product quality is generally good, matching well-known brands and competing on a specification-to-price ratio. High-value equipment often offered as standard on Chinese models supports residual values. However, many of the models being introduced were created for the Chinese market and may not align with European expectations and demands.
For new entrants to stand out in Europe, they need to examine brand recognition and establish a unique selling point (USP) to attract European buyers. Different countries have set out different schemes alongside varying levels of natural market demand for EVs.
The Chinese brands' share of the EU BEV market has been stable, with a 1 percentage point (pp) increase year on year in the second quarter of 2025.
Autovista Group is hosting a webinar titled 'The road ahead: Residual value trends and the next market shift' on 14 October 2025 at 09:30 BST / 10:30 CET. Registration is available for those interested in learning more about the future of the EV market in Europe.
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