Japanese Cars Got Outsold By The Chinese For The First Time In Europe

Chinese carmakers have achieved historic success in the European market. For the first time in a full quarter, they sold more new cars than their Japanese competitors.

According to research firm Dataforce, Chinese brands captured 12.7 percent of the European market from July to September this year, while Japanese manufacturers achieved a share of 11.9 percent.

This is a huge change in market relations that has occurred in a very short period of time. Just five years ago, Chinese brands held barely one percent of the European market. In the meantime, they have become serious competitors not only to Japanese and Korean manufacturers but also to traditional European brands. Their sales in the third quarter almost doubled compared to the same period last year.

Growth accelerated further in September, when Chinese brands achieved a record 14.5 percent market share, almost three percentage points more than in August. This means that almost one in seven new cars registered in Europe during September belonged to a Chinese brand.

It is particularly interesting that the main drivers of growth are no longer just electric cars. Classic and plug-in hybrids are playing an increasingly important role, and Chinese manufacturers are trying to attract buyers who are not ready to switch completely to electric power. Brands such as BYD and Chery are aggressively expanding their offerings, and their cars usually offer rich equipment, powerful powertrains, and competitive prices.

The European Union is trying to limit this penetration. After imposing additional tariffs on electric cars made in China, Brussels also reached an agreement with Beijing in October to limit exports of Chinese hybrids. This further intensifies the trade conflict, as European institutions have long argued that Chinese state subsidies give domestic manufacturers an unfair market advantage.

It is possible that the announcement of new restrictions further accelerated the purchase of Chinese cars in September, before the new rules came into force. However, the long-term trend is much more important than one month. Chinese manufacturers are increasingly successfully adapting to European buyers and are gradually building sales and service networks.

European manufacturers still dominate the domestic market, but pressure is mounting. In mid-October, Germany and France agreed on a joint proposal to support the European car industry, which includes more flexible rules on CO2 emissions and stronger incentives for car production in Europe.

For Japanese manufacturers, who have spent decades building their position in Europe, this result is particularly unpleasant. It took Chinese manufacturers only a few years to overtake them in market share. Until recently, such an outcome seemed almost unthinkable.

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