Chinese car imports into Europe overtake exports heading in the opposite direction for the first time
China has cemented its status as a major player in the global car market as imports of vehicles and parts from the country into the EU has - for the first time on record - surpassed the number of European-made cars and components moving in the opposite direction, according to new analysis.
Exports of cars and parts from the EU to China fell 34 per cent last year to €16billion (£13.85billion), a report by consultancy EY found. Since 2022, exports have more than halved.
At the same time, imports from China rose 8 per cent to €22billion (£19billion).
It means within a matter of years, an export surplus has turned into a deficit.
There are now around 40 different Chinese car brands sold across Europe's new car market, with the top five players - MG, BYD, Jaecoo, Omoda and Leapmotor - accounting for 84 per cent of total Chinese registrations.
EU car imports from China surpass exports for the first time as China continues to dominate the European car market
The closing gap between Chinese imports and EU exports continues on a national level.
In Germany, Europe's automotive epicentre, China was only the sixth most important export market for German manufacturers in 2025.
German exports do still exceed imports but the gap has shrunk significantly.
Since the peak in 2022, German exports to China have more than halved from around €30billion (£26bn) to €13.6billion (£11.8bn), while vehicle imports from China rose by two-thirds to €7.4billion (£6.4bn).
If current trends continue, imports and exports could reach parity in 2026, the EY analysis said.
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It's important to note that the category of automotive parts includes electric vehicle batteries, a market dominated by Chinese suppliers.
EY expert Constantin Gall says that Chinese car makers currently face challenges in Germany, where Volkswagen, Mercedes-Benz and BMW have so far successfully defended their market shares. But in other markets, Chinese manufacturers have already made noticeable gains.
According to Gall, competition is expected to intensify further in 2026, increasing pressure on Germany as an automotive production hub.
German car makers and suppliers also have production facilities in China to manufacture for the local market as well as shipping vehicles and components to Europe.
These include models from BMW subsidiary Mini, the Cupra Tavascan SUV from Volkswagen and Smart vehicles produced by Mercedes-Benz together with its major shareholder Geely in Xi'an.
New data from LeaseLoco shows that nearly one in five drivers are now considering leasing Chinese brands
The increasing popularity of Chinese cars
New data from leading vehicle leasing comparison site LeaseLoco shows Chinese manufacturers now account for 18.1 per cent of all UK lease enquiries in 2026 so far, up from just 9.2 per cent in 2025
That's a 97 per cent lease enquiry rise for Chinese cars in 12 months.
The figures suggest British drivers are becoming far more open to competitively-priced vehicles from Chinese manufacturers despite a relative lack of prior knowledge of these brands.
LeaseLoco's experts say the shift is likely being driven by the fact Chinese manufacturers are focusing heavily on EVs and offering models with advanced technology and longer battery ranges at lower price points than many established European brands.
In fact, LeaseLoco's latest data shows that monthly lease prices for Chinese brands are, on average, around 27 per cent lower than those for European brands.
Jato Dynamics' - which analyses the European motor sector - data similarly shows a stark increase in the popularity of Chinese cars in Europe.
Chinese car brands increased market share to a record 5.5 per cent in August 2025.
More than 43,500 units were registered by Chinese car brands that month – a 121 per cent year-on-year increase and more than the individual volumes recorded by several major European brands.
Combined registrations of Chinese car brands in August 2025 were higher than those of Audi (41,300 units) and Renault (37,800 units).
Felipe Munoz, global analyst at Jato Dynamics said: 'European consumers are responding positively to the growing, competitive line-up from China's car brands.
'It appears that these brands have successfully tackled the perception and awareness issues they have experienced.'
