As China's retail penetration rate for new energy passenger vehicles surpasses 60%, the European automotive market is also experiencing a powertrain transition. The fuel vehicle market is shrinking rapidly, while electrified models dominate, with Chinese automakers like BYD and Chery leading the growth, evolving from marginal challengers to mainstream competitors.

▍Hybrids Remain the Top Choice, Pure EV Share Nears 20%

According to data released by the European Automobile Manufacturers Association (ACEA), in April 2026, new car registrations in the European market, covering the EU, European Free Trade Association, and the UK, reached 1.152 million units, up 7.0% year-on-year. In the first four months of the year, cumulative new car registrations in Europe grew by 4.8% year-on-year.

However, despite sustained sales growth, a silent powertrain transition is underway. From January to April, electrified models (pure electric, hybrid, and plug-in hybrid) became the core engine driving market growth. Pure electric vehicle registrations reached 747,000 units, with their market share rising from 15.3% year-on-year to 19.7%. Italy (+73.1%), France (+48.2%), and Germany (+41.3%) saw strong growth, collectively accounting for 64% of Europe's total pure EV registrations.

Hybrid models remain European consumers' preferred powertrain, accounting for 38.2% of the market in the first four months, with registrations reaching 1.448 million units. Italy (+25.5%) and Spain (+19.7%) drove growth, while Germany (+6.6%) and France (+2.3%) showed steady increases.

Plug-in hybrid vehicle sales also continued to grow, with cumulative registrations reaching 364,000 units from January to April, lifting their market share to 9.6%, up 1.7 percentage points year-on-year. Italy surged by 99.2% year-on-year, and Spain grew by 64.3%, driving category expansion.

In contrast, fuel-powered vehicles are declining rapidly. By the end of April, gasoline vehicle sales fell 17.7% year-on-year, with France plummeting 36.6% and Germany, Italy, and Spain all posting double-digit declines. Diesel vehicles continued to slide by 16.1%, leaving their market share at just 7.7%. The combined market share of gasoline and diesel vehicles dropped to 30.2%, far below the 67.5% share of electrified models.

▍Breakthrough Moment for Chinese Brands

During Europe's electrification transition, Chinese automakers are gaining a stronger foothold. According to Dataforce, in April 2026, pure EV sales by Chinese brands like BYD and Chery in Europe totaled 38,281 units, more than doubling year-on-year. This pushed Chinese brands' market share in Europe's pure EV market above 15% for the first time, a record high.

In the plug-in hybrid segment, Chinese automakers also performed strongly, accounting for nearly 29% of sales in April. In the broader European automotive market (including fuel vehicles), Chinese brands' market share neared 10%, indicating growing acceptance among local consumers across multiple segments and price points.

Intense competition in the domestic market has squeezed automakers' profit margins, making Europe a critical overseas growth market for Chinese automakers. Leveraging configurations like long-range, advanced intelligent driving, and large-screen cockpits, along with price advantages, Chinese models have captured cost-conscious young European consumers, gradually shedding their "cheap" label.

Meanwhile, Chinese brands are gradually penetrating Europe's mid-to-high-end market. BYD launched its premium brand Denza in Europe, targeting the luxury segment. On the production side, BYD plans to build factories in the EU, while Stellantis partnered with Leapmotor in vehicle manufacturing, using localized production to avoid import tariffs and anchor into Europe's supply chain.

Notably, the UK is emerging as a benchmark market for Chinese automakers' European expansion. Currently, one in every seven newly registered vehicles in the UK comes from a Chinese brand. Chery's Jaecoo and Omoda series continue to sell well in the UK, with the Jaecoo 7 SUV topping the UK's monthly best-seller list in March.

The trend of shrinking fuel vehicles and rising electrified model penetration in Europe, coupled with favorable policies like subsidies and tax incentives, has made accelerating localized production and industrial cooperation a consensus among Chinese automakers, despite tariff uncertainties. Chinese automakers have transformed from low-cost challengers to global competitors, with further upside potential in Europe as brand and production capacity deployments continue.

In this environment, Chinese automakers must proactively address policy and trade risks. With the EU drafting battery regulations, carbon border adjustment mechanisms, and potential anti-subsidy investigations, automakers must prepare in advance: establish dedicated teams to track carbon footprints, build battery recycling systems, and strengthen compliance communication through local industry associations or partners to mitigate policy uncertainties.

Layout 丨 Zheng Li

Source 丨 ACEA, Digitimes

Image Source 丨 Qianku Network