Chinese automakers surpass their Japanese rivals in European sales

According to data from the European Automobile Manufacturers Association (ACEA), Chinese automobile manufacturers surpassed Japanese brands in the European passenger car market for the first time in May. Sales of five Chinese brands (D, SAIC, Geely, Chery and Leapmotor respectively) rose 65% year-on-year to 138,410 units in 31 European countries, while Toyota, Honda, Nissan, Suzuki, Mazda and Mitsubishi fell 3% overall to 130,424 units combined. The reversal follows a more steady climb in volumes over a single month. While SAIC has recorded year-on-year sales growth in 17 of the last 24 months, D, which was only added to ACEA’s tracking in July 2025, has achieved sales growth for 11 consecutive months, i.e. every month it has been tracked. Nissan grew in only two of these months; Suzuki grew in five months and Mazda in seven months. While nearly all Chinese automakers note that Nio and the Great Wall are doing well in Europe, it is the D that is providing most of the sales momentum. Total international passenger vehicle sales increased by 70% annually to 789,367 units in the first half of 2026. Chairman Wang Chuanfu told shareholders in June that full-year overseas sales were expected to reach 1.6 million vehicles, 50% above the 2025 total. The automaker had raised its international sales volume target to 1.5 million units from 1.3 million units earlier in the year. The overseas push coincides with a 16% decline in D’s domestic new car sales over the same period; This is the first half-year decline in six years. EU tariffs on Chinese-made battery electric vehicles (BEVs) can increase costs for state-owned players by as much as 45.3% and do little to blunt this cost advantage. D’s Dolphin Surf Boost is priced at €26,990 (US$30,800) in Europe, still 3% cheaper than the comparable Renault 5 E-Tech. Aware of trends in the European market, the automaker is increasingly turning to plug-in hybrids (PHEVs), which avoid the additional tariff altogether and have seen May sales increase 140% year-on-year. D has driven much of the sales momentum for Chinese automakers. Renewed subsidy programs have sharpened the gap. Germany’s new incentive worth up to €6,000 for BEVs and PHEVs replaces the incentive that was scrapped in December 2023, while Sweden and Italy have also extended their own support. Japanese brands, which are strong on fuel efficiency and good on regular hybrids but weak on BEVs or PHEVs, are largely unable to benefit from these incentives. In fact, given that the sales momentum is shifting predominantly in favor of electric vehicles, there are several reasons why EU consumers may prefer a Japanese vehicle: In the first quarter of 2026, the total electric vehicle market share stood at 67.5%, and BEVs accounted for 19.5% of all new sales. Europe is also falling down Japan’s list of priorities. Nissan’s long-term plan, announced in April, names Japan, the US and China as priority markets and makes little mention of Europe; It’s a shift that follows Chinese automakers’ growing interest in domestic production to avoid tariffs altogether. However, the EU saw the strongest Japanese export growth of all markets in the first five months of 2026: 185,920 units, up 25% year-on-year. Ultimately, exports will give way to domestic production as regulatory pressures on Chinese or other global automakers increase. To this end, Leapmotor is preparing to assemble the SUVs at its Stellantis factory in Spain; Chery opened a European headquarters in Barcelona in April, and Nissan is consolidating two production lines at its underutilized Sunderland plant, which is said to be in talks with Chery to transfer the freed up capacity. D looks likely to purchase a brownfield site in Southern Europe from Stellantis in the coming weeks.

Information: This content was prepared and published using AutomobileMagazine’s artificial intelligence-supported publishing system, in line with the information shared by international automotive manufacturers and reliable press sources.