Chinese car sales reached 7.6% of the European passenger car market in September 2025
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Chinese car sales reached 7.6% of the European passenger car market in September 2025
- Sales of Chinese cars (excluding Volvo, Lotus, and Smart) reached a new record in Europe 30 (EU + UK + Switzerland + Norway) in September 2025, with a volume of 94,000 cars and a market share of 7.6%. While the market share for the first nine months of the year has remained relatively stable (5.4% compared to 5.3% for the first eight months of the year, with 535,000 sales), it appears that the upward trend in Chinese car sales, which has been steadily increasing since the beginning of 2025, will continue in the coming months. This is largely due to the increased availability of these types of cars on the continent, the improved acceptance of Chinese products by European consumers, the ramp-up of production of the Chery plant in Spain and the future openning of BYD in Hungary.
- The Chinese brands that saw the most significant growth in September 2025 were MG and BYD, with strong increases also for Jaecoo, Omoda (both Chery group), and Polestar (Geely group). BYD, in particular, saw the most substantial increase compared to 2024, jumping from 2,400 sales in January 2024 to 24,000 in September 2025 (a tenfold increase). MG still leads the pack (its sales rose from 16,500 in January 2024 to 33,000 in September 2025), but the gap with BYD is narrowing.
- If we include Volvo, Lotus and Smart in the total of Chinese brands (these three brands being half or wholly owned by the Chinese group Geely), the market share of Chinese brands in Europe will reach 10% for the first time in September 2025, which was totally unimaginable just two or three years ago.
Chinese car sales represent 5.3% of the European passenger car market over the first eight months of 2025, but already 7.6% in September 2025
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Chinese car sales represent 5.3% of the European passenger car market over the first eight months of 2025, but already 7.6% in September 2025
- Of the 8,682,021 new passenger car sold in 30 European countries (EU + UK + Switzerland + Norway) for the first eight months of 2025 (a 0.3% increase compared to the first eight months of 2024), Chinese brands accounted for 462,935 units, or 5.3% of the entire European passenger car market (compared to 3.2% for the first eight months of 2024). Sales of traditionally European brands acquired by Chinese carmakers—Volvo (2.4% European market share for the first eight months of 2025), a Swedish brand and subsidiary of the Chinese Geely Group; Lotus; and Smart—are not included in this total.
- Sales of Chinese brands in Europe (all engine types combined) have been strong and irreversible for the past two or three years, even though BYD's Hungarian factory has yet to release its first model and new European tariffs are being imposed on these brands. Despite these new tariffs, Chinese cars remain competitive and are therefore selling well.
- At this rate, Chinese cars could reach 7.5% of the European market or even 10% quite quickly, especially after the start-up of the BYD factory in Hungary.
- The European countries that currently buy the most Chinese cars are the United Kingdom (largely due to MG's British heritage), Italy, and Spain, which have now far surpassed Germany and France. Poland is making significant progress and has now overtaken Norway. However, this is primarily due to Chinese cars with internal combustion engines.
- The best-selling Chinese brands in Europe are MG and BYD, which are far ahead of their competitors, but there is an increasingly significant Chinese offering as 40 Chinese brands are now distributed in Europe.
SAIC and FAW are producing fewer and fewer Volkswagens in China
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SAIC and FAW are producing fewer and fewer Volkswagens in China
- Since 2020, Chinese carmakers SAIC and FAW, which produce Volkswagens in China, have had to stop operations in several factories dedicated to the production of these cars, due to the constant decline in Volkswagen sales on the Chinese market, which have fallen from 4 million vehicles in 2019 to 2.6 million units in 2025.
- This loss of 1.4 million vehicles resulted in the shutdown of production at three plants, with a fourth (Nanjing) scheduled to close by the end of 2025. These four plants have a combined capacity of one million vehicles. Other plants have seen their production reduced or are being converted to the production of electric vehicles.
- The Volkswagen Group, which was the leader in the Chinese market for several decades, has therefore de facto confirmed that it will never again reach the sales volumes of the years 2015-2019 by reducing its capacity to 3 million vehicles per year in China.
- This is especially true since this initiative is accompanied by a strategic transition of the German carmaker towards battery electric, even if Volkswagen will have to make very significant efforts to be able to compete against Chinese carmakers already well established in the electric market such as BYD, Geely, Leapmotor, Nio, Xiaomi or XPeng.
- Despite the repurposing of some sites, Volkswagen maintains a significant industrial footprint in China, its second-largest market worldwide after Europe. The group is accelerating the conversion of several plants to electric vehicle production, including models in the ID range and future vehicles developed in partnership with the Chinese company Xpeng.
Smart will launch the replacement for the electric Fortwo in 2026
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Smart will launch the replacement for the electric Fortwo in 2026
- It wasn't initially planned, but the Smart brand (50% owned by Mercedes and 50% by Geely) will indeed launch a replacement for the old electric Fortwo in the fall of 2026. In fact, the sales results of the current range (#1, #3, #5) have fallen far short of expectations, both in China and Europe. The carmaker's management decided it was wise to complement this range, considered too expensive and too different from the original one, with a small electric model in the A-segment, given that the old Fortwo – both its combustion engine and electric versions – had been produced in Europe in 2.2 million units between 1998 and 2024.
- Geely, which produces the electric Smart #1, #3, and #5 in China, is reportedly looking for a production site in Europe to assemble its upcoming small electric car, to be called the #2. The Chinese carmaker currently faces tariffs of over 25% in Europe on its imports from China, and producing the model in Europe would allow it to avoid these tariffs. This is important because the Smart #2 will be primarily intended for the European market. Geely has reportedly already contacted Renault, among others, about producing the Smart #2 at one of its factories in Spain.
- Another important piece of information is that the Mercedes A-Class, which will be discontinued in 2028, will indeed have a replacement, but it will be a Smart that could be called Smart #4 or #6. This one will of course be a battery electric vehicle like all current Smart models.
- This future Smart, to be launched in 2027/2028, will be an hatchback sedan as the A-Class and will attempt to attract former owners of the Mercedes B-segment model, of which 4.7 million units were produced between 1998 and 2024.
Audi is considering building a factory in the United States
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Audi is considering building a factory in the United States
- Following the tariff agreement between the European Union and the United States, Audi is reviewing its American strategy.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
- Currently, Audi does not have an assembly plant in the United States but does have one in Mexico (San Jose Chiapa) where, since 2017, the Audi Q5 SUV (D segment) has been produced at an average rate of 150,000 units per year, a third of which are exported to the United States. This represents approximately 50,000 vehicles annually shipped from Mexico to the United States out of a total of 200,000 Audi vehicles sold annually in the US market, with the remaining 150,000 vehicles being imported from Europe.
- But since 2024, Audi sales have been declining significantly in this market: -14% in 2024 and -14% expected in 2025. This decline in sales will not improve with the new taxes imposed by the Trump administration, for example 15% for cars from Mexico and 15% for cars from Europe.
- This is why Audi wants to build an assembly plant in the United States, ideally near Volkswagen's Chattanooga plant in Tennessee. The four-ring brand is aiming for a capacity of 150,000 to 200,000 vehicles per year. Construction of the plant would take two years. This plant would allow Audi to avoid tariffs on cars currently produced in Europe and Mexico.
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