The Chinese Automotive Brands Impact report revealed that 47 percent of European buyers would consider a Chinese car, compared with 44 percent for an American vehicle. This modest difference signals shifting perceptions.
Note that the survey polled 1692 respondents from May 21 to July 31 of 2025. The results reflect buyer willingness rather than confirmed sales, yet they demonstrate a notable trend in consumer sentiment in the European vehicle market
Chinese automakers, especially BYD and SAIC Motor, continue to gain traction within European electric and plug-in hybrid markets. Sales data showed that these brands outsold Renault and Audi in plug-in hybrid sales for August 2025.
An earlier report also confirmed that BYD surpassed Tesla in European Union sales for the second straight month. The company expanded its Spanish dealership network from 25 outlets in 2024 to nearly 100 by September 2025.
The European Union imposed additional tariffs in 2025, including a 17 percent duty on BYD vehicles, citing concerns over subsidies and distorted competition. Despite this, Chinese firms were able to sustain aggressive pricing.
Consumer interest is driven by affordability and advanced features. Chinese automakers can sustain their aggressive pricing strategy through economies of scale, efficient production, and technological advancement.
Various Chinese electric vehicle brands have also shown advantages. They often provide longer ranges and lower costs compared with American brands. These help reduce stigma surrounding Chinese brands in European markets.
American automakers have struggled in Europe due to weaker presence, limited product lines, and higher pricing. General Motors exited in 2017, while Ford reduced production capacity across Europe during 2023 to limit further losses.
European firms also confront intense competition from Chinese manufacturers. They are pressured to develop affordable models while contending with structural challenges in supply chains, labor costs, and new technologies.
Leaders in Europe are evaluating protective measures and looking into Chinese subsidies. These may result in higher tariffs, domestic incentives, or frameworks balancing domestic industry interest against domestic consumer demand.