Chinese cars "conquer" Europe - Demand for electric vehicles powers the market

Demand for electric cars continued to support growth in the European car market in May, allowing Chinese brands to expand their share, data from the European Automobile Manufacturers Association (ACEA) showed.
Total car registrations, a gauge of sales, in the European Union, Britain and the European Free Trade Association rose 3.6% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% compared with the same period in 2025.
Registrations of battery electric vehicles (BEV), plug-in hybrids (PHEV) and hybrids increased by 39.1%, 13.2% and 8.2% respectively, together accounting for more than two-thirds of all new vehicles registered in May.
“The market continued to benefit from strong consumer demand for a wide range of electric technologies in key European markets, supported by tax benefits and new and revised incentive schemes,” the association said in a statement. In contrast, demand for traditional internal combustion engines weakened significantly, with gasoline and diesel sales falling by around 19% each.
European carmakers lost ground during the transition. Registrations at Renault, Stellantis and Volkswagen fell between 1% and 3%, reflecting increased competition.
On the other hand, Chinese manufacturers recorded extraordinary gains. Leapmotor's sales rose by 465.1% in May, while Chery and BYD rose by 244.1% and 136.6%, respectively. Among other manufacturers, Geely and SAIC recorded increases of 12.6% and 13.9%.
Tesla extended its recovery for the fourth consecutive month, with registrations rising 107.9% to 28,610 units, marking a strong increase after more than a year of declines.
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