According to Reuters on September 10, at the Munich IAA Mobility Show, Chinese automaker executives emphasized their commitment to “In Europe, For Europe”, signaling a major shift in the competitive landscape. Once struggling in Europe, Chinese brands are now challenging local giants like Volkswagen and Renault for market share.
2022 Research Report on the brand competition pattern of China's intelligent electric vehicles
Wei Haigang (魏海刚), President of International Business at GAC Group (广汽集团), said that everything begins with European consumers’ needs, which requires localized strategies. GAC showcased its Aion V EV, set to launch in Poland, Portugal, and Finland, and announced plans to bring its Aion UT to Europe next year while accelerating local production.
Hongqi (红旗) and Chery (奇瑞) also highlighted the importance of “In Europe, For Europe” strategies, focusing on local R&D, manufacturing, and investment — an approach similar to Volkswagen’s localization strategy in China. Facing a 24% sales drop in China from 2020 to 2024, Volkswagen launched CARIAD China, a dedicated software unit, and partnered with Xpeng Motors (小鹏汽车) to co-develop EVs tailored for Chinese consumers. Now, Chinese EV makers are applying the same playbook to Europe.
Data from JATO Dynamics shows that Chinese brands’ market share in Europe nearly doubled YoY to 4.8% in January–July 2025. McKinsey projects that within the next decade, Chinese automakers could reach a 14% share in Europe, comparable to Japanese brands (14%) and ahead of Korean brands (9%).
At the show, Stella Li (李柯慧), EVP of BYD (比亚迪) and President of BYD Americas, announced that BYD’s Hungary plant will begin production by year-end. Brian Gu (顾宏地), Vice Chairman and President of Xpeng Motors, revealed the company has opened an R&D center in Munich to strengthen its local footprint and long-term plans.
With U.S. market access becoming increasingly limited, Europe has become a strategic priority for Chinese EV makers. Analysts expect intensifying competition between Chinese and European automakers as EV adoption accelerates across the region.