Komodo
News Center
23
2026
-
07
Chinese car companies accelerate deep cultivation in the European market, achieving dual breakthroughs in sales and awareness
During the first six months of 2026, Chinese auto brands posted robust results globally, especially in Europe, transitioning from mere product exports to overseas ecosystem development and local manufacturing.
Sales Surge: In May 2026, new vehicle registrations of Chinese automakers including BYD, Chery and Leapmotor in Europe surpassed those of Japanese automakers for the first time. Specifically, BYD’s monthly sales in Germany soared 273.7% year-on-year, Leapmotor rose 366.2%, and Xpeng grew 284.2%.
Perception Reshaping: European consumers have become significantly more receptive to Chinese brands, with 55% of respondents stating they are willing to switch to Chinese-brand vehicles. In Germany, BYD’s brand awareness has reached 64%. Consumers closely associate Chinese automobiles with “environmental friendliness, new technology and stylish design.”
Strategic Upgrade: Faced with the EU’s tariff policies, Chinese automakers are accelerating local deployment. BYD’s plant in Hungary, Chery’s joint venture project in Spain, and Leapmotor’s co-production partnership with Stellantis are all underway, aiming to build a vertically integrated ecosystem covering the entire industrial chain.
Shifts in the Global Competitive Landscape: Electrification Forces Cost Restructuring and Convergence of Technology Pathways
The global automotive industry is undergoing profound structural adjustments. Electrification has emerged as the ultimate direction, and fierce market competition compels enterprises to restructure costs.
Profit Pressure: In the first half of 2026, the profit margin of China’s automotive industry stood at merely 3.4%, while the profit margin for vehicle manufacturing dropped to as low as 1.5%. Cutthroat, margin-eroding competition is forcing automakers to phase out low-efficiency models and focus on core market segments to develop blockbuster products.
Technology Roadmap: In the long run, battery electric vehicles (BEVs) represent the ultimate path of electrification, while extended-range and hybrid vehicles serve as phased transitional solutions. The B-segment BEV market is booming as it caters to upgraded household mobility demand. By contrast, sales of low-cost A00-segment vehicles have halved amid mounting cost pressures and fading policy incentives.
Overseas Expansion Strategy: Going global is regarded as a "must-do" for automakers rather than the "only solution". The next phase of competition will center on building localized full industrial chain systems, strengthening regional brand influence and gaining a say in compliance standards, while avoiding cutthroat price wars among Chinese players overseas.
Developments in Other Regions: Kazakhstan advances auto component localization and supply chain reshuffling
Beyond Europe, the automotive industries in other regions are also undergoing major adjustments.
Kazakhstan: The government mandates clear plans for new production capacity of auto components, wider adoption of domestic raw materials, and investment from international enterprises in charging infrastructure, aiming to advance the transformation and upgrading of its automotive industry.
Supply Chain Transformation: The regional landscape of the global automotive supply chain is undergoing profound reshuffling. Companies including Mercedes-Benz and Great Wall Motors have signed framework agreements for global strategic cooperation, as the new energy vehicle sector enters a new market-driven phase.
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