Chinese EV makers grab 10.6% of Europe as EU mulls tariffs

Chinese automakers are accelerating their European foothold, with combined sales from the five largest Chinese-owned groups—SAIC, BYD, Geely, Chery, and Leapmotor—rising 65% year-over-year in May 2026, according to ACEA data analyzed by Citi. That gives them a 10.6% share of the broader European market (EU, UK, Iceland, Norway, Switzerland, Liechtenstein). BYD is the standout: it sold over 32,000 units in May, up 136.6% from a year earlier, capturing 2.8% market share and overtaking SAIC (2.6%). Geely, boosted by its Volvo ownership, ranked eighth overall among manufacturer groups. Chery and Leapmotor more than tripled their registrations from a small base.

Meanwhile, many legacy European brands—Volkswagen, Stellantis, Renault—saw sales declines in the same period. The rapid expansion comes as Brussels reportedly weighs fresh tariffs to curb Chinese EV imports, aiming to protect domestic automakers. Citi analysts note the growth is from a low base but accelerating, suggesting Chinese brands are gaining traction through aggressive pricing and competitive EVs like BYD's Atto 3 and Seal. The stakes are high: if tariffs are imposed, they could slow—but likely not halt—the momentum of Chinese EV makers in Europe.