Due to the significant increase in sales, the share of Chinese brands in Europe is getting bigger. The leader was MG, whose share doubled to 1.6% as of the first half of 2023. If we take into account manufacturers associated with Chinese owners, such as Volvo, the combined share of Chinese brands in the European car market is 5%.
At the beginning, it is worth explaining what "Chinese brand" actually means today. These are not only cars designed and produced directly in China. Volvo, once a classic Swedish brand, has been owned by Geely since 2010. A similar situation with Smart is now part of a joint venture between Mercedes and Geely Group. MG cars, although they may have British nameplates, are entirely designed in China. That is, the indirect influence of the Chinese auto industry on Europe is much greater than it might seem.
Only in the first half of 2023, the share of Chinese brands increased by 80%. compared to the corresponding period last year, and amounted to 2.2% of the entire European market. If you add Volvo, Polestar and Smart as having significant Chinese influence, that number rises to 4.8%. That is, approximately every 20 new cars in Europe have Chinese roots. This figure was a record for the car market of the European Union. At the same time, this share will continue to grow, in parallel with the release of new models for the European market by Chinese automakers.
Among Chinese brands, MG became the leader in Europe, whose market share doubled to 1.6% in the first half of 2023. This Chinese brand has overtaken such powerful competitors as Mazda, MINI, Suzuki and Cupra, and entered the ranking of the 20 best-selling brands in Europe. At the same time, the key role in such successes is played by Great Britain, which accounts for almost 40% of the total number of sales. This concentration of sales of cars of a certain Chinese brand in one country is not unique, as there are other examples: Lynk & Co, DR Automobiles and EVO also boast large sales volumes in certain markets, in particular the Netherlands and Italy.
As experts predicted, among Chinese cars in the EU, electric cars dominate. Lynk & Co plays a significant role in the plug-in hybrid segment, while MG focuses mainly on classic electric vehicles (BEVs).
In general, Chinese brands are strategically focusing on compact cars in Europe, including hatchbacks and SUVs, rather than competing in smaller car segments that are still largely dominated by European manufacturers. Despite the significant demand in Europe for small budget cars, Chinese brands have not yet tested this market segment. This approach is the result of an analysis of the profitability of sales of certain types of cars and the availability of models. It is also worth noting that such brands as Nio, Ora and Hongqi concentrated on the premium segment.
