MUNICH/BEIJING (dpa-AFX) – Chinese car brands are gaining more and more ground in Germany and Europe. In the first quarter, they were responsible for around 3.1 percent of new registrations in Germany, as can be seen from figures from the Federal Motor Transport Authority. This is only a small proportion, but it is growing quickly: in 2025 as a whole it was 2.4 percent, in 2024 it was only 1.7 percent.
Two brands in particular are currently in the lead: BYD and MG Rowe, which together accounted for well over half of new Chinese registrations in Germany in the first quarter. Chinese-owned European brands such as Volvo or Smart are not included.
At the EU level, the Chinese brands are even stronger. The figures from the industry association ACEA for January and February – March is not yet available – show a market share of 1.8 percent for BYD alone and 1.9 percent for MG parent SAIC, which also includes Maxus.
Dealer networks boost sales
“They’re putting a lot of pressure on,” says Stefan Reindl, head of the Institute for Automotive Economics in Geislingen. A central element here is the car trade, as some Chinese brands have now set up relevant and rapidly growing dealer networks. A few weeks ago there were 180 locations at MR Roewe, around 155 at BYD and now there could be more, says Reindl. There is also the company Leapmotor, which now has around 120 locations through a cooperation with Stellantis. “The brands have recognized that in order to be successful in Germany they need a dealer network, visibility and local advice.”
Burkhard Weller, whose Weller Group is one of the largest German car dealers with 42 locations, now offers BYD at 12 locations and MG Rowe at 10 locations in addition to its main brands BMW and Toyota (Toyota Motor). “We are very satisfied,” he says. “Sales are going well, customers come to us very consciously and have generally already dealt intensively with the Chinese brands.” Both brands approached him. “We have looked at it carefully and are convinced that we have the right people on board.” Other large groups have also added BYD and MG to their portfolio.
Not everyone will stay
The prospects for further growth are definitely good for the stronger Chinese brands in Germany. Reindl assumes that not everyone who is currently competing in this country will establish themselves. “More like five to six brands – with a total market share of perhaps eight to ten percent,” he expects. The German market is demanding and intensely competitive – and one should not underestimate the high level of loyalty and preference for domestic brands. The brands also owed part of their current growth to high self-registrations in the trade and sales to car rental companies with the help of high discounts. Car manufacturers resort to such means to boost sales. But they are expensive.
Chinese brands are still quite rare on the street. Of the 49.5 million cars that were registered in this country on January 1st, they only account for 131,000 – that’s 0.26 percent. But the trend is increasing quickly.
Tough competition in the domestic market
In China itself, pressure is growing on car manufacturers to sell vehicles abroad. The domestic market remains highly competitive, with price wars among manufacturers eating into margins. The export business is booming all the more, especially for electrified vehicles.
According to the Chinese industry association CPCA, Chinese car manufacturers shipped around 349,000 electric and hybrid cars abroad in March, an increase of almost 140 percent compared to the previous year. “Chinese car manufacturers have made significant progress in Germany and further advances are expected,” said Cui Dongshu, Secretary General of the CPCA.
War in the Middle East provides tailwind
The unrest in the Middle East could further accelerate the trend. “The distortions in the energy markets have fueled demand for electromobility globally, especially in Europe and Germany,” says Peter Fintl, car expert at the technology consultancy Capgemini. “The price of oil opens the door, the better product keeps it open.” What he means is that the models have become noticeably better and buyers today get significantly more electric cars for their money than they did two years ago.
Nicola Borgo from the consultancy Arthur D. Little also sees an improved starting position for Chinese suppliers: rising oil prices are accelerating demand for electric vehicles, while European producers are under increased cost pressure at the same time.
Beijing auto show shows new products
New models and expansion plans are also likely to play a major role at the Auto China 2026 Beijing auto show this week.
What is slowing things down are the additional EU tariffs on electric cars from China that have been in effect since 2024. So far, however, they do not seem to have stopped the advance of Chinese brands in Europe. At the same time, some manufacturers are pushing forward their production in Europe. A trend that industry expert Ferdinand Dudenhöffer is also observing. “China’s dominance will be ‘exported’ in the next few years,” he writes in a recent study. “It’s a similar model to that of the Japanese 50 years ago or the Germans 70 years ago.”
Lower Saxony’s Prime Minister Olaf Lies (SPD), who also sits on the VW (Volkswagen (VW) vz) supervisory board, has already brought another option into play: the construction of Chinese cars in the German VW factories. One cannot prevent Chinese car manufacturers from increasingly entering the European market, he told the “Neue Osnabrücker Zeitung”. For him, the focus is also on securing employment in German VW plants and maximizing production facilities.
Meanwhile, other manufacturers in China are already preparing to enter the German market. Expert Fintl does not expect a sudden upheaval, but a gradual shift: “Not as a tsunami, but as a rising tide. Slower than is hoped in China, but more sustainable and powerful than is feared in Wolfsburg, Paris or Turin.”/jpt/DP/stk
