Cracking the code: Chinese EV brands entering Europe 

Chinese brands are entering Europe with new, technologically advanced electric vehicles (EVs). In a new webinar, Autovista Group experts discuss the impacts and map out the future with Autovista24 editor, Tom Geggus.

Chinese brands have European aspirations for their EVs. But as the market endures ongoing turbulence, is it ready for these vehicles? How have these brands performed so far in the region? Which new and used-car market brand strategies will prove successful in the years to come?

Cracking the code: Chinese EV brands entering Europe, the latest Autovista Group webinar, set out to answer these questions. On the panel was Christian Schneider, director of valuations at Autovista Group. Joining him was Christoph Ruhland, director of business development at Autovista Group.

Economic backdrop for EV brands

Europe saw promising EV market share growth at the beginning of the decade. However, battery-electric vehicle (BEV) and plug-in hybrid (PHEV) sales appear to have hit a small speed bump more recently.

The halting of incentive programmes in some European countries appeared to slow progress. New or reintroduced schemes have helped re-energise electrification. However, this recovery is regional. Different countries have set out different schemes alongside varying levels of natural market demand.

‘If you are speaking about cracking the code of Europe, there is not one code to crack. This is maybe what is also making it so complicated. Every country has specialities and different policies in place, different subsidies in place, different tastes in place,’ Schneider said.

This contrasts with the Chinese new-car market. Figures from the first half of the year show that roughly half of all new light vehicles sold in the country are plug-ins. This is backed by consistent industrial strategy, as well as demand for alternative powertrains, such as extended-range electric vehicles (EREVs).

Taking stock of new arrivals

Chinese brands’ share of the EU BEV market has been quite stable. This increased by one percentage point (pp) year on year in the second quarter of 2025. Meanwhile, PHEVs saw a 7pp increase over the same period.

‘It seems we are shifting a little bit away from imports from Chinese brands in the EU from purely battery-electric vehicles to plug-in hybrids, which are not hit by the tariffs that we have in place,’ Schneider stated.

However, Chinese brand performance is subject to regional specifics. Currently, there appears to be a split between countries in the north and the southeast. The likes of Germany and France have a relatively high income, but also a strong domestic carmaker presence.

This means a slightly lower BEV market penetration for Chinese brands, compared with the likes of Spain, Italy and Portugal. Additionally, countries like these have less-established all-electric markets, allowing for new entrants to gain a foothold more quickly.

Regionality also plays a part in residual value (RV) performance. Germany now sees a 9pp gap on average between new brands from China and those of more established marques. This has improved quite quickly from only a few years ago, when there was a difference of roughly 16pp.

Meanwhile, the Spanish used-car market has seen greater consistency. There has been less change in the value retention of Chinese brands. However, the gap is narrower at 7pp. While these averages offer a useful marker, selecting specific brands for analysis can reveal varied results.

What works for EV brands in Europe

Spanning development, product, sales and marketing, Chinese brands have strengths to play to. However, there is also room for improvement in some instances, Ruhland commented.

Chinese brands are not only competitive but, in many cases, lead in terms of technological capabilities and development speed. However, many of the models being introduced were created for the Chinese market. This means they are not completely aligned with European expectations and demands.

Generally, product quality is good, matching well-known brands and competing on a specification-to-price ratio. High-value equipment, which is often offered as standard on Chinese models, supports residual values too. Although this means lower entry list prices. But there is a divergence in regional preferences.

There are some contrasting customer preferences in China and Europe. The Chinese market values a touch-screen central infotainment system for a majority of controls. However, there is still an appreciation for physical buttons and dials in Europe. A lack of flexibility is apparent when comparing different cabin spaces of competing Chinese models.

Meanwhile, selling models have taken a step forward as brands lean towards dealer networks and away from flagship stores. New entrants can rely on the trust built by those dealerships, alongside their greater coverage. However, high sales targets can drive risky short-term cycle tactics, which can harm RVs.

For these new entrants to stand out in Europe, they need to examine brand recognition. A unique selling point (USP) is necessary to attract European buyers who have an abundance of different domestic and imported options. ‘The brand needs to have a core USP that is easy to remember and easy to communicate,’ Ruhland highlighted.

Enjoyed Cracking the code: Chinese EV brands entering Europe? Then sign up for Autovista Group’s next webinar: The road ahead: Residual value trends and the next market shift. It will take place on 14 October 2025 at 09:30 BST / 10:30 CET. Register for your place today.