Chinese carmakers outsell Japanese brands in Europe for first time in a quarter

A first full quarter for Chinese brands

Chinese carmakers outsold Japanese rivals in Europe over the third quarter of 2026, according to market research firm Dataforce. Chinese-branded cars held 12.7% of the market against 11.9% for Japanese brands, including Toyota. Sources tie the 12.7% figure to different periods: Polish and Romanian reports link it to September 2026 registrations, while Spanish and Dutch reports link it to the quarter. Registrations of Chinese cars roughly doubled in September from the same month a year earlier, and the growth was driven mainly by hybrid models. Five years ago, Chinese brands accounted for only 1% of European sales.

Chinese brands12.7%

Japanese brands11.9%

Chinese brands

12.7 %

Japanese brands

11.9 %

Data from the article text

Models and markets

Chery's Jaecoo 7 SUV was the best-selling model in the British market in March and September, according to data cited by Bloomberg. Sport utility vehicles are gaining ground across the continent, and Chinese makers are launching models tailored to European buyers, including plug-in hybrids. The shift follows slowing demand in China, where drivers are turning away from Volkswagen and BMW in favour of local brands that launch new models faster and at lower cost. That slowdown is pushing BYD and other manufacturers to seek buyers abroad, including in Europe.

Japan's long head start

Toyota has sold cars in Europe since 1963 and now operates plants in several European countries. Nissan has produced vehicles at its Sunderland plant in the United Kingdom since 1986. Japanese manufacturers needed decades to build their position on the continent. Chinese brands have closed the gap far faster, and European incumbents such as Volkswagen and Renault still dominate the overall market.

Brussels weighs limits

The European Union has imposed extra tariffs on battery electric vehicles made in China, arguing that Chinese makers benefit partly from state subsidies. The bloc has agreed in principle to limit imports of Chinese hybrids, whose popularity is rising. Brussels is also considering rules that favour locally made vehicles, including a tax advantage for European company cars. Mercedes-Benz welcomed these steps but warned that the global market should not be disrupted, according to De Standaard.

Chinese factories in Europe

Chery plans to start production in Barcelona, and BYD is close to completing a factory in Hungary. Leapmotor has begun building its B10 SUV at the Stellantis plant in Zaragoza, as part of a joint venture between the two companies. Geely has announced an alliance with Ford at Almussafes for future manufacturing, and SAIC (MG) has announced its own plant in Galicia. Production in Zaragoza is already under way, while the Barcelona and Hungary projects are still ahead.