09 March 2026
Chinese cars in Europe: A new vehicle fleet creating service potential
Article Summary
Understand how the rising demand for Chinese cars in Europe will reshape the region’s on-road fleet and its aftermarket segment.
The increasing presence of Chinese cars in Europe brings new dynamics to the region’s repair market. As exports of Chinese electric cars, PHEVs and hybrids accelerate, European repairers, suppliers and policymakers are facing new opportunities and challenges.
Mainland Chinese vehicle manufacturers are making significant progress in Europe in search of growth, as they grapple with overproduction in their home market and high tariffs in the US. Vehicle exports from Chinese automakers set a record of 7.1 million units in 2025, rising 21% year over year and more than doubling since 2022.
The rising demand for Chinese cars in Europe—where European and American brands have traditionally dominated—will reshape Europe’s on-road fleet and its aftermarket segment over the next decade. Aftermarket suppliers have already begun expanding their product range to cater to mainland Chinese brands.
Steady market share growth of Mainland Chinese cars in Europe
The new-energy vehicle (NEV) legislation in mainland China has provided mainland Chinese automakers with a significant competitive advantage, especially as they expand into the European market, where many consumers are looking for alternatives to internal combustion engine (ICE) vehicles. They have ramped up exports of plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs) that have emerged as affordable compromise between combustion-engine cars and battery-electric vehicles (BEV).
The rapid growth of Chinese cars in Europe was primarily driven by powertrain diversification and the breadth of product portfolios tailored to local use cases and price points, according to Sidong Fan, Principal Research Analyst – Planning Solution Light Vehicle Forecasting, S&P Global Mobility.
The market share of Chinese cars in Europe reached 5.8% in 2025, nearly double that of 2024, according to S&P Global Mobility. Our automotive industry forecast indicates that this could increase to nearly 15.5% by 2035, with more than 2.1 million new vehicles sold in the European market that year.
Around 44% of Chinese cars sold in Europe are expected to be produced in Europe/Turkey, as major car brands expand their manufacturing footprint to circumvent EU tariffs on Chinese BEVs.
“Despite the EU’s additional tariffs, Chinese brands’ competitive pricing, Euro NCAP validated safety, expanding dealer networks and rising brand awareness accelerated acceptance among European buyers. Meanwhile, a PHEV/HEV led diversification while navigating BEV trade barriers underscores these brands’ adaptability and points to greater emphasis on partnerships, localized manufacturing and accelerated technology roadmaps,” Fan added.
An earlier verison of this article was first published on AftermarketInsight, S&P Global Mobility's business intelligence platform supporting aftermarket strategic planning.
Fortified by two decades of meticulously consolidated data, the platform provides independent analysis as well as insights into vehicles-in-operation forecasts, vehicle miles traveled, and other key industry drivers.
Europe to have the largest Chinese vehicle fleet outside mainland China
The rapid adoption of Chinese cars in Europe is projected to make the region home to the largest on-road Chinese vehicle fleet outside mainland China within the next decade. The fleet became the largest among all other regions in 2025.
Steady growth, driven by these manufacturers expanding production capacities in Europe, is expected to further increase its size, widening the gap between Europe and other regions.
According to S&P Global Mobility analysis, total number of mainland Chinese vehicles in operation (VIO) in Europe is forecast to grow from approximately 6 million units in 2025 to more than 28 million units by 2035. Europe’s total light VIO in the same period will grow from 438 million units to 486 million units.
North America, which has around 5 million vehicles from mainland Chinese vehicle manufacturers, is expected to stabilize at more than 7.5 million units by 2035. This stabilization is amid government efforts to deter mainland Chinese brands by imposing high tariffs to protect local players.
Growth in the rest of the Asia-Pacific (APAC) region is projected to be more substantial. APAC will see its share of mainland Chinese brands VIO expanding steadily from more than 1.5 million units in 2025 to close to 12 million units by 2035 — behind only Europe.
This reflects mainland Chinese automakers’ intensified efforts to meet demand in Southeast Asia, especially in Thailand, Indonesia and Malaysia. A large population and a growing middle class offer a potentially lucrative market for affordable mainland Chinese vehicles in this region.
A breakdown of mainland Chinese brands’ VIO by powertrain reveals a rapidly growing presence of PHEVs and HEVs among Chinese cars in Europe and other regions. Demand for such models has been booming in Europe as an affordable compromise between combustion engine and BEVs.
Mainland Chinese brands have capitalised on the trend by ramping up exports of hybrids. Additionally, the European Union announced in December 2025 that the EU 2035 ICE ban will be modified to allow some hybrid and pure ICE vehicles to remain on sale after 2035.
Europe is projected to have more than 4.5 million mainland Chinese-branded PHEVs and more than 2 million mainland Chinese-branded HEVs on its roads by 2035, up from around 280,000 units and 140,000 units, respectively, in 2025, according to S&P Global Mobility data.
There are estimated to be 11 million gasoline-engine vehicles from mainland Chinese manufacturers on European roads in 2035, up from over 4 million vehicles in 2025, a modest increase given the shift to electrification. The number of mainland Chinese BEVs in the vehicle parc is projected to grow significantly to more than 9.5 million VIO in 2025, up from less than 1 million in 2025.
How can repairers and suppliers prepare for the opportunity from Chinese cars in Europe?
Some European suppliers have already expanded their product range and tweaked their offerings to cater to mainland Chinese vehicle models.
In December 2025, Magneti Marelli Parts and Services announced introduction of new spares for the most prevalent mainland Chinese brands. The company offers components such as brake pads, shock absorbers, thermostats, batteries and window regulator parts for MG models (ZS, HS, MG 5, Marvel) and LYNK & Co. 01.
Their product range covers air, cabin, oil and fuel filters, wiper blades and starter motors for a broad range of Chery vehicles and extends to parts for newer mainland Chinese BEVs such as the Nio ET7, ES8 and Xpeng P7.
Delphi, a brand of PHINIA Inc., has announced steps to address repair demand from mainland Chinese vehicle manufacturers in Europe. It has more than 80 part numbers in stock across braking, steering, suspension and other categories. Anticipating increase in demand, the company has more than 650 stock-keeping units (SKUs) in development.
The company states that its DS diagnostics platform now supports a growing number of mainland Chinese OEMs being imported into Europe, including BYD, Jinbei, JMC, Maxus, MG, Shuanghuan and Yuchai. The DS platform covers functions such as full vehicle health checks, battery health checks, 12V battery replacement, braking system resets and dynamic ADAS camera and radar calibration.
The increase of Chinese cars in Europe offers opportunities and challenges depending on the business model of aftermarket companies.
Mainland Chinese OEMs have increased the total number of electrified vehicles in circulation in Europe, expanding demand for electrified services, batteries, parts and aftermarket accessories, such as charging accessories. Demand for BEV-specific skills and diagnostic tools will also increase.
“Chinese OEMs and suppliers often offer cost-competitive parts and components, enabling aftermarket manufacturers to source cheaper SKUs or adapt product lines. Lower OEM vehicle prices can expand ownership and thus aftermarket lifetime spend,” a top European tier 1 supplier told S&P Global Mobility in an interview.
However, he warned of potential technical differences and different warranty ecosystems. “Chinese OEMs may use different suppliers, software stacks and proprietary diagnostics, requiring aftermarket players to invest in tools, training and access rights to data,” he said, adding that lower-priced vehicles and parts could drive down margins and put pressure on some independent workshops.
An earlier verison of this article was first published on AftermarketInsight, S&P Global Mobility's business intelligence platform supporting aftermarket strategic planning.
Fortified by two decades of meticulously consolidated data, the platform provides independent analysis as well as insights into vehicles-in-operation forecasts, vehicle miles traveled, and other key industry drivers.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.