The European car market is seeing some surprising shifts. While overall new car registrations dipped in the first half of 2025, one group is really standing out: Chinese car brands. They are growing fast, and electric vehicle sales have topped one million units for the first time ever.
New data from JATO Dynamics, released this month, shows a slowdown. The European new car market entered a slump in June. Monthly registrations fell by 4.4% compared to last year, hitting 1,250,868 units.
Experts looked at 28 European markets. The drop in new car registrations was sharpest in Italy, down 17%. Belgium saw a 16% fall, and Germany was down 14%. France and Switzerland also had noticeable dips, falling 7% and 6% respectively. Romania, however, saw a massive 50% drop.
According to JATO Dynamics, June’s negative numbers follow several shaky months for the European new car market. Total registrations for the year, up to June, reached 6,844,426 units. This is a 0.3% drop from last year, or 17,728 fewer cars than in the first six months of 2024.
Felipe Munoz, a global analyst at JATO Dynamics, explained why this is happening. He pointed to high prices that just won’t go away. He also mentioned problems with trade partners and the new reality of the market after the pandemic.
As the European new car market shrinks, car companies are fighting harder for sales. European, Japanese, Korean, and American carmakers are feeling the pressure. Chinese brands, however, are doing well. Their market share in the first half of 2025 nearly doubled compared to the same time in 2024. It reached a new high of 5.1%.
The sales volume for Chinese brands jumped by 91%. For the entire first half of the year, Chinese brands were just behind Mercedes, which holds a 5.2% market share. They were ahead of Ford, which had 3.8%. In June alone, when you combine all Chinese brands, they actually sold more cars than Mercedes.
Five specific Chinese car brands are leading this charge in Europe. These are BYD, Jaecoo, Omoda, Leapmotor, and Xpeng.
BYD is Making Big Moves in Europe
BYD has been very aggressive with its car prices. In the first half of 2025, they registered 70,500 units. This is a huge 311% increase from last year. In June alone, the Chinese carmaker registered 15,565 units. This put them in the top 25 best-selling brands. They even sold more cars than Suzuki, Mini, and Jeep.
The BYD Seal U was one of the top plug-in hybrid cars in Europe in June, alongside the Volkswagen Tiguan. It was also the third best-selling plug-in hybrid in the first six months of the year.
Meanwhile, Xpeng has become the most successful high-end Chinese car brand in Europe so far this year. They registered 8,338 units in the first half of 2025. JATO Dynamics says this growth was mainly due to strong demand for their G6 SUV. The G6 accounted for 5,615 of those registrations.
You can find the full analysis from JATO Dynamics, titled “Chinese car brands continue their ascent, outselling Mercedes in June and Ford in H1,” by visiting their website. The report is available here: JATO Dynamics Report.