Article Type: Webinar

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.

Driving the future: EV trends transforming the global and European market

Electric vehicle (EV) expectations, market-leading brands and battery technology trends. In a new webinar, Autovista Group experts look into the electric future with Autovista24 editor Tom Geggus.

Global automotive markets face exceptionally strong headwinds as trade tensions and political situations create so much uncertainty. Alongside supply-chain upset and incentive fluctuation, EV forecasts have been subject to numerous ongoing influences.

Meanwhile, brands looking to cement new export markets are having to navigate an increasing number of obstacles. Amid the uncertainty, changes in brand dominance in Europe’s EV market may see a new marque emerging as the dominant power.

As growth continues, the EV market of the future will also require a large volume of batteries. The size and chemistry of these power-storage units will be determined by availability, cost and practicality. These elements will be central to future EV market fortunes.

In Autovista Group’s latest webinar, a panel of experts explored the trends transforming global EV markets. Autovista Group’s chief economist and director of valuations and forecasting, Dr Christof Engelskirchen, EV Volumes’ director of content, Christian Schneider, and head of forecasting, Neil King, outlined their expectations.

EV expectations for the future

The world is currently facing strong economic headwinds. Engelskirchen highlighted constantly changing tariffs, fresh inflationary concerns, geopolitical tensions, supply chain challenges and poorly defined economic policy.

In March, the Organisation for Economic Co-operation and Development (OECD) downgraded many of its gross domestic product forecasts for 2025. For example, the EU, US, Germany and the UK all saw downward revisions amid escalating trade tensions.

Accordingly, vehicle electrification is facing headwinds. Increased living costs and reduced government support make EV purchases more financially challenging. Used battery-electric vehicles (BEVs) are still an unknown for some buyers who lack the necessary information to ascertain quality. Higher electricity costs in some regions are making BEVs less attractive.

King highlighted how EV adoption in Europe is stimulated by incentives and tighter emissions regulations. Meanwhile, in the US, the BEV share fell as a pre-tariff boost saw increased sales of internal-combustion engine vehicles.

This leaves China to be the key driver of EV growth, as the country continues to see strong demand. Extended-range electric vehicles are seeing particular success in the market. Across the world, more affordable EVs are hitting the roads, which will only help encourage adoption.

Brands leading the future

With an increasingly competitive domestic market, Chinese brands are looking to launch in countries across the world. Many of these companies have clear strategies which are flexible enough to adapt to uncertainty.

These brands offer technologically advanced EVs at competitive prices. However, such models are expected to see greater supply than demand in Europe, which will put pressure on residual values (RVs). This has already been factored into Autovista Group’s RV outlooks.

Chinese brands are expected to capture 10% of the European BEV market by the end of this year, Schneider explained. This percentage is then forecast to remain relatively stable towards 2030.

Globally, Chinese carmakers will put pressure on brands from elsewhere. For example, BYD is expected to overtake Tesla this year in terms of sales. However, the US BEV manufacturer is predicted to strike back in the medium term, with new models on the horizon.

Batteries of the future

As carmakers compete for market space, they will also determine the winning EV battery strategy. Much has been made of the potential of solid-state batteries, which promise greater power density at a lighter weight.

However, EV Volumes does not expect a large offering of EVs powered by this battery chemistry to hit the market. In the next five years, lithium-iron-phosphate (LFP) and nickel-manganese-cobalt (NMC) batteries are forecast to meet the majority of battery demand.

More BEVs are now fitted with LFP batteries, meaning lower capacity but greater affordability. However, these powertrains are becoming more efficient, meaning smaller batteries can achieve longer distances, helping keep range anxiety at bay.  

Enjoyed Driving the future: EV trends transforming the global and European market? Then sign up for Autovista Group’s next webinar: Residual value pressure, shifts in market dynamics, and EV momentum. It will take place on 3 July 2025 at 09:30 BST / 10:30 CET. Register for your free place now.