Chinese Automakers Push Into Europe as Legacy Brands Fight to Defend Market Share
Chinese automakers are aggressively expanding across the European market with advanced technology and competitive pricing, forcing legacy European brands to rely on heritage and regulatory protection.
Walking through the bustling halls of the Paris Motor Show, the scale of the shifting automotive landscape becomes immediately apparent. On a bench outside hall number 4, Liu Lopiti, a Chinese automotive journalist from Beijing, speaks with absolute clarity about the ambition driving his nation's industry. "We, the Chinese, want to be number 1 in the world," Lopiti states without hesitation. "We want the whole world to see our effort and our capabilities." Pointing out that Chinese manufacturers focused heavily on battery technology and software integration over a decade ago, he emphasizes that the rapid product lifecycles allow new models to go from concept to production in merely two years.
While Chinese brands aggressively expand their footprint, European legacy automakers find themselves on the defensive. BMW, a crown jewel of German engineering founded over a century ago, skipped the exhibition entirely amid falling profit margins, restructuring, and what company officials described as a shift in priorities. Chery, conversely, made a massive splash in Paris with an array of new brands and models. Aaron Zheng, Vice President of Chery International, outlines ambitious targets for the continent. "We will close 2026 with sales of 100,000 cars in Europe," Zheng notes. "In 2027 we will triple this volume and increase our dealership network from 687 this year to 1,143."
Recent market data underscores the immense pressure facing European manufacturers. By August, Chinese automakers captured nearly 12 percent of Europe's new car market, with imports surging by roughly 75 percent to approximately 770,000 vehicles during the first eight months of the year. In June alone, one out of every three plug-in hybrid vehicles sold in Europe originated from China. To capture market share, Chinese brands offer advanced technology and extensive features at competitive price points, backed by robust warranties. Chery offers a 7-year or 150,000-kilometer warranty, while competitors like GAC have raised the bar even further to 8 years or 160,000 kilometers.
Regulatory Measures and Local Production
The intense pressure on European automakers threatens tens of thousands of manufacturing jobs, prompting intervention from European Union institutions. Shortly before the exhibition, Brussels and Beijing reached an agreement capping hybrid vehicle imports at 350,000 units annually starting in December, a move the European Commission says averted a projected surge to 800,000 vehicles this year. Stellantis CEO Antonio Filosa welcomed the measure while emphasizing that it represents merely a first step. Despite regulatory hurdles, Chinese brands already established within Europe continue to scale up operations. BYD is launching mass production at its new facility in Hungary and searching for a site for a second factory in France or Spain, with executive Stella Li projecting a workforce of 40,000 employees in Europe by the end of the decade.
Nostalgia Meets Modern Engineering
French President Emmanuel Macron visited the exhibition under tight security, bypassing foreign pavilions to highlight domestic manufacturing at Citroën. The French market remains fiercely loyal to local brands, which historically capture half of total domestic sales. Macron inspected Citroën's new concept car, an all-electric reimagining of the iconic 2CV. Beneath the retro shell, however, the vehicle integrates technology from Chinese partner Leapmotor. Other Stellantis brands showcased evocative concepts, including the Alfa Romeo Cuorerosso, a sporty coupe recalling classic models, and the Fiat Multiplay crossover. Renault joined the wave of nostalgia with the 8 Gordini concept and the Alpine A310 Vision, though Citroën's electric 2CV remains the only model slated for serial production by 2028.
When asked whether heritage and emotion can shield European manufacturers from the Asian wave, Phil York, global marketing director for Peugeot, points to the brand's enduring identity. "As a brand we have more than 130 years of heritage and history, and our DNA has been very consistent: always bringing driving pleasure, design, and quality," York explains. Yet, consumer priorities are visibly shifting, particularly in markets like Israel, where car buyers frequently prioritize large screens and advanced digital interfaces over traditional driving dynamics. Max Zhang, managing director of Geely Europe, acknowledges the rapid ascent of Chinese brands while dismissing concerns over reliability. "Quality and reliability belong to the past; today we are on par with European manufacturers and closing in on Korean and Japanese standards," Zhang asserts. When asked what advice he has for a European driver whose family has driven domestic brands for generations, his answer is straightforward: "Just take a test drive."
