Chinese EV sales surge to new high in Europe putting tariffs under scrutiny
Summary
Chinese electric car sales in Europe reached a record high in early 2026, making up over 14% of the market for battery electric vehicles (BEVs). This growth has raised questions about tariffs and protection for European carmakers, especially as Chinese brands offer many low-cost models and some countries apply lower import taxes.Key Facts
- Chinese electric car sales in western Europe hit 171,800 units in the first five months of 2026, reaching a 14.2% share of the BEV market.
- This represents an increase of nearly 5 percentage points compared to the same period in 2025.
- Chinese brands like BYD, Chery, SAIC, and Xpeng are targeting Europe to expand their electric vehicle exports.
- Despite EU tariffs up to 35.3% plus a 10% import duty on some Chinese electric cars, sales have grown rapidly.
- The UK is the largest European market for Chinese electric vehicles as it does not add extra tariffs beyond the EU standard.
- Italy saw a large spike in sales due to government subsidies making some Chinese models, like Leapmotor’s T03, available for around €5,000.
- Chinese firms sell more electric vehicle models in Europe than European manufacturers (120 versus about 100).
- The EU is considering extending tariffs to plug-in hybrid electric vehicles (PHEVs), following concerns that Chinese companies are shifting focus toward these hybrids to avoid current levies.
- Tesla sales in Europe also increased by 60% year-on-year, with the Model Y becoming the best-selling electric car model in the region.
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