Chinese Companies in Europe — 2026-10-27
Chinese automakers have achieved a historic milestone by outselling Japanese rivals in Europe for the first time in a full quarter. This shift is driven by rapid expansion from brands like BYD and Chery, despite ongoing EU tariffs and local manufacturing challenges.
Chinese Companies in Europe — 2026-10-27
Top developments
BYD
BYD continues to solidify its presence in Europe, with European sales rising in September as the company prepares to begin mass production at its Hungarian plant in Q4 2026. The automaker is also planning to open further works in Europe to counter rising trade barriers, with a target of doubling capacity at its Brazilian plant to optimize global logistics. BYD’s strategy involves using local production to mitigate the impact of EU import restrictions while maintaining competitive pricing.
CATL
CATL, the leading EV battery maker, is facing slowing domestic profit growth in China, with its Q3 net profit growth rate hitting its lowest level in nearly two years. Despite this domestic pressure, CATL is accelerating its expansion in Europe, building cell factories to meet Brussels’ localization requirements. The company’s market share in China remains dominant at 40.92% in September, though the gap with BYD is narrowing.
Chinese Automakers vs. Japanese Rivals
For the first time in a full quarter, Chinese automakers outsold Japanese rivals in Europe, capturing 12.7% of sales through September. This milestone underscores the rapid market penetration of brands such as BYD and Chery, which are leveraging both new models and strategic partnerships to gain ground. The shift marks a significant change in the European automotive landscape, traditionally dominated by Japanese manufacturers.
Deals, expansion & investment
Chinese battery manufacturers are actively relocating cell production to Europe to comply with local content rules and avoid trade barriers. This trend is part of a broader strategy where Chinese firms are not just exporting vehicles but establishing manufacturing footholds, including potential use of rivals’ idle factories.
Regulation & market context
The EU continues to enforce localization duties and tariffs on Chinese EVs, prompting companies like BYD and CATL to accelerate local production. The European market remains challenging, with fixed costs and utilization rates posing risks to new plants, even as sales momentum builds.
On the radar
- BYD Financial Results: BYD’s results for the first nine months are scheduled for review on October 29, 2026.
- Hungary’s Political Shift: Following the end of the Orbán era, Hungary’s new government is revisiting its approach to Chinese investments, potentially affecting BYD and CATL operations.
By the numbers
- 12.7%: Chinese automakers' share of European sales through September, surpassing Japanese rivals for the first time in a full quarter.
- 40.92%: CATL’s market share in China’s EV battery sector in September 2026.
- 28,309: BYD’s new EU registrations in September 2026.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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