Chinese car brands significantly increased their presence in Europe’s new car market in 2025, while Tesla lost its position as the region’s top electric vehicle (EV) brand.
New data from JATO Dynamics shows Chinese-owned brands grew volumes by 44% year-on-year in 2025, marking a pivotal year for their expansion across Europe.
BYD and Omoda almost tripled registrations compared with 2024, while Jaecoo and Leapmotor reached nearly 60,000 and 33,000 units respectively, with Leapmotor achieving that total in its debut year.
At group level, SAIC was the standout performer, increasing registrations by 26% to move into tenth place in Europe.
The growth saw SAIC overtake both Tesla and Nissan, becoming the second best-selling Chinese OEM in the region behind Geely, which continues to rely heavily on volumes from Volvo.
China also strengthened its role as a production hub for the European market.
Vehicles produced in China accounted for a growing share of registrations, with China rising to fifth place for production in Europe in 2025, up from ninth the previous year, driven by a 77% increase in imports.
Daniele Ministeri, senior consultant at JATO Dynamics, said: “China’s growing influence in the European automotive market is reflected in the numbers.
“The increasing presence of vehicles produced in China on the continent is not only due to the continued rise of Chinese brands but also reflects registrations of European models produced in China, such as the Mini Cooper, Dacia Spring and Cupra Tavascan.”
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The powertrain mix of Chinese-owned brands also shifted during the year.
While battery electric vehicles remained important, BEV share fell from 40% to 35%, as Chinese manufacturers expanded their hybrid offerings.
Registrations of both HEVs and PHEVs increased by eight percentage points, reflecting a move to align more closely with European consumer demand.
Against this backdrop, Tesla’s position in Europe weakened.
The US brand was overtaken by Volkswagen to become the continent’s best-selling BEV brand in 2025.
Tesla’s volumes declined, with the Model Y remaining Europe’s best-selling BEV despite a 28% year-on-year fall in registrations.
Model 3 volumes were also down almost a quarter.
Overall, battery electric vehicles still advanced in Europe, with 2.6 million units registered and a 20% market share, but the momentum increasingly came from a broader mix of manufacturers and powertrains.
JATO said the changing balance highlights how Chinese brands are reshaping the competitive landscape, while established EV leaders such as Tesla face intensifying pressure from both European and Chinese rivals.