Chinese brands and Tesla gain ground in European car market

Staff
By Staff
4 Min Read

Chinese car brands continued to strengthen their position in Europe’s new car market during the first five months of 2026, while several established manufacturers recorded falling registrations despite overall market growth.

Latest figures from the European Automobile Manufacturers’ Association (ACEA) show new car registrations across the EU increased 4% year-on-year to almost 4.75 million units, with battery electric vehicles accounting for one in every five new cars registered.

Chinese challengers continue to gain ground

Among the biggest winners were Chinese manufacturers.

BYD registrations surged 158.9% to 99,578 vehicles across the EU, lifting its market share from 0.8% to 2.1%.

Chery Automobile, which includes the Omoda and Jaecoo brands, enjoyed even faster growth, with registrations rising 265.2% to 65,621 units as its market share climbed from 0.4% to 1.4%.

SAIC Motor, owner of the MG brand, also increased registrations by 12.2% to more than 100,000 vehicles.

Tesla also recovered strongly after a difficult 2025, increasing registrations by 77.3% year-on-year to 89,180 vehicles in the EU. Its market share rose from 1.1% to 1.9%.

Biggest winners in Europe’s new car market (January-May 2026)












Brand Parent company Registrations (Jan-May 2026) Year-on-year change EU market share
Chery (Omoda, Jaecoo) Chery Automobile 65,621 +265.2% 1.4%
BYD BYD 99,578 +158.9% 2.1%
Tesla Tesla 89,180 +77.3% 1.9%
SAIC (MG) SAIC Motor 100,021 +12.2% 2.1%
Skoda Volkswagen Group 322,142 +11.9% 6.8%
Audi Volkswagen Group 233,411 +7.5% 4.9%
Fiat Stellantis 157,661 +30.8% 3.3%
Opel/Vauxhall Stellantis 144,846 +18.3% 3.1%

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Ford among established brands to lose ground

The data highlights the increasing competitive pressure on several established manufacturers.

Ford recorded one of the sharpest declines among major brands, with registrations falling 21.3%, while Renault Group was down 6.2%, Toyota Group fell 2%, Hyundai Group declined 2.7% and Nissan registrations dropped 6.8%. Dacia also saw registrations fall 12.7%.

Ford announced a new model offensive in May, including a new electric Fiesta, as it looks to retake a market share across Europe.

Volkswagen Group remained Europe’s largest manufacturer, increasing registrations by 1.5% overall despite Volkswagen brand volumes falling 3.8%.

Skoda was the standout performer within the group, growing registrations by 11.9%, while Audi increased 7.5%.

Within Stellantis, results were mixed. Fiat registrations rose 30.8% and Vauxhall/Opel increased 18.3%, helping group registrations grow 5.7%, although Peugeot registrations fell 6.4% and Alfa Romeo declined 22.6%.

BMW Group increased registrations by 3.9%, helped by a 14.5% rise for MINI, while Mercedes-Benz grew 3.2%. Kia also outperformed many mainstream rivals, recording 5.2% growth, although Hyundai registrations fell 10.4%.

Electrified vehicles continue to reshape the market

The figures also underline the continuing shift towards electrified vehicles.

Battery electric vehicles accounted for 20% of all EU registrations during the first five months of the year, up from 15.3% a year earlier. Hybrid-electric vehicles remained the most popular powertrain with a 37.8% market share, while plug-in hybrids increased their share to 9.7%.

By contrast, the combined market share of petrol and diesel cars fell to 30.1%, down from 38% during the same period last year. Petrol registrations declined 18.2% and diesel fell 16.6%.

The strongest growth in battery electric registrations came from Italy (+75.7%), France (+55.4%) and Germany (+40.9%), helping drive the overall increase in EV market share across Europe.

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