Chinese Cars Pass Japan's in Europe
For the first time over a full quarter, Chinese car brands outsold Japanese brands in Europe, 12.7% to 11.9%, according to the research firm Dataforce. Five years ago, Chinese brands held barely 1%.
Chinese car brands outsold Japanese brands in Europe over a full quarter for the first time. From July through September, Chinese brands took 12.7% of new-car sales and Japanese brands took 11.9%, according to the market research firm Dataforce, as reported by Bloomberg and the Belgian news agency Belga. Chinese brands reached a record 14.5% in September alone, when their registrations rose 104% from a year earlier while the overall market grew about 10%. Five years ago, Chinese brands had barely 1% of European sales.
Bloomberg reported that the growth is led by hybrids. Plug-in hybrids from China face the European Union's standard 10% import duty rather than the extra duties on China-made battery-electric cars. Britain is the strongest market, with Chinese brands at 23.3% of September registrations; Germany is lower, at about 6%. Leapmotor has begun building a model in Spain.
Chinese carmakers outsold Japanese rivals in Europe over a full quarter for the first time, according to Dataforce figures reported by Bloomberg.
The numbers
Dataforce's data cover the European Union, Britain, Iceland, Norway and Switzerland, about 98% of new-car sales. Chinese-branded cars took 12.7% of European sales from July through September, ahead of Japanese brands, including Toyota and Nissan, at 11.9%, Belga and Bloomberg reported. Belga reported that the Chinese lead widened toward the end of the quarter.
September was the strongest month: Chinese brands reached a record 14.5% share as their registrations rose 104%, ChinaElektro and Automoto.it reported. The overall market grew about 10%. Over January through September, Chinese brands held 10.5%, up 102%. Leapmotor grew 324% in September to 14,382 cars, both outlets reported. Volkswagen Group's registrations fell about 3% in September.
How fast it happened
Five years ago, Chinese brands accounted for barely 1% of European sales, Bloomberg and Belga reported. Bloomberg noted that European manufacturers such as Volkswagen and Renault still dominate the region.
Hybrids and duties
Bloomberg reported that the growth is led by hybrids, and ChinaElektro said plug-in hybrids are important to Chinese makers. Plug-in hybrids from China face the EU's standard 10% import duty, not the extra tariffs the bloc added on China-made battery-electric cars, ChinaElektro reported, and the EU agreed in principle this month to curb imports of hybrid cars from China, according to Bloomberg. Belga described the arrangement as an import quota.
Britain and Germany
In Britain, Chinese brands registered 81,776 of 350,536 new cars in September, a 23.3% share, according to SMMT registration figures analyzed by EV Compared. Chery's Jaecoo 7 was the country's best-selling car in September with 10,814 registrations, ahead of the Tesla Model 3 with 9,929, according to SMMT figures and EV Compared; Bloomberg reported it was also the best seller in March. In Germany, Chinese brands took 6.1% of September registrations, ChinaElektro reported from Kraftfahrt-Bundesamt data; Kfz-Betrieb put the share at 6.7% with Smart and Polestar included. The Kraftfahrt-Bundesamt's own table shows BYD as the largest Chinese brand in Germany, with 6,040 registrations and a 2.4% share.
Building in Europe
Leapmotor has started building its B10 SUV at Stellantis's plant in Zaragoza, Spain, through the companies' joint venture, Bloomberg and ChinaElektro reported.
Pressure in China
Belga and Bloomberg also reported that European carmakers are struggling in China, the biggest market for Volkswagen and BMW, where drivers increasingly buy domestic brands that bring models to market faster and at lower prices. Bloomberg reported that shrinking demand in China is pushing BYD and other Chinese makers to look for new markets.