TLDRs;
- Chinese automakers captured 7.4% of Europe’s car market in September 2025, surpassing South Korean rivals.
- BYD, MG, and Chery led the surge, driven by booming demand for EVs and hybrids in the UK.
- Fleet and dealer sales inflated short-term growth, with analysts urging caution on retail demand strength.
- A wave of used Chinese EVs is expected soon, creating opportunities in battery health certification and analytics.v
Chinese automakers have reached a new milestone in Europe’s car market, securing a record 7.4% share of total passenger vehicle sales in September 2025.
According to data from market research firm Dataforce, surging demand for hybrid and electric vehicles (EVs) propelled this growth, marking the first time Chinese brands have surpassed South Korean competitors in the region’s auto landscape.
Leading the charge were BYD, SAIC’s MG, and Chery, which capitalized on Europe’s accelerating shift toward cleaner mobility. Together, these companies have redefined competition in a market once dominated by European and Japanese brands.
Nearly half of all Chinese car sales during the month came from the United Kingdom, where favorable import tariffs and a seasonal license plate changeover drove an unexpected spike in registrations.
BYD and MG Drive a Power Surge
Chinese EV champion BYD saw its UK sales jump sixfold from August, bolstered by strong consumer interest in plug-in hybrids and affordable electric models. MG and Chery also posted impressive gains across the continent, particularly in plug-in hybrid and fully electric categories.
Combined, Chinese automakers captured 20% of Europe’s plug-in hybrid market and 11% of EV sales in September. While much of the momentum came from price competitiveness and aggressive dealership expansion, the influx of new models, ranging from compact city cars to long-range SUVs, gave Chinese brands a significant edge over legacy rivals.
However, analysts caution that not all sales reflect direct retail demand. A portion of these vehicles was reportedly sold into rental fleets and dealership inventories, potentially inflating the immediate market share figures.
Fleet Sales Power, But Distort, Growth
Experts warn that while fleet and dealer sales have undeniably helped Chinese automakers gain visibility, they can also mask underlying retail demand trends. Vehicles sold to rental companies or used as dealership demo units often return to the market quickly, sometimes within months, as second-hand cars.
“Fleet channels tend to amplify early market gains but don’t always translate into lasting retail traction,” said one automotive analyst. “It’s a fast way to establish brand presence, but sustainability depends on private buyer adoption.”
Still, September marked a turning point, battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) together outpaced all other powertrains in Europe’s fleet market for the first time. The trend underscores how corporate buyers and rental operators are driving the continent’s electrification shift, with Chinese brands positioning themselves as the go-to suppliers for cost-effective EVs.
Used EV Market Opens New Opportunities
The growing presence of Chinese EVs in Europe’s fleet segment also signals the coming rise of a used EV ecosystem. As these vehicles enter the second-hand market, attention is turning to battery health certification,a crucial factor for pricing, financing, and consumer confidence.
A study cited by industry observers found that 90% of UK dealers support the creation of an industry-wide battery health check system to help buyers understand the true condition and range capacity of pre-owned EVs. Companies like Aviloo, which offer independent battery diagnostics, are already building this infrastructure.
For investors and technology providers, this presents an emerging frontier. From data standardization services to battery analytics platforms, opportunities abound for firms that can bring transparency and reliability to the used EV market, an area set to grow rapidly as more Chinese electric models circulate across Europe.
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