Chinese automakers grab record hybrid market share

PARIS: Chinese automakers continued to expand their European foothold in May, capturing the highest share ever of hybrid-car sales and the biggest slice of the electric-vehicle market in 10 months.

Manufacturers led by BYD Co. and SAIC Motor Corp.'s MG surpassed 9% share in both of those categories, based on figures from industry researcher Dataforce.

Including combustion-engine models, European registrations of Chinese-branded cars topped 5% for the first time.

The latest figures add to evidence that Chinese carmakers are largely succeeding in penetrating one of the world's biggest automotive markets.

BYD executive Stella Li said in June that Europe is the Chinese EV leader's most important region.

The bulk of the growth in Europe has come in EVs and hybrids, where Chinese manufacturers can leverage their strengths in battery technology and software.

Their EV sales are now back to mid-2024 levels, before the European Union introduced tariffs on Chinese-made electric cars.

A probe by the bloc found that aid from Beijing had given its companies an unfair boost.

Hybrids - which aren't affected by the EU duties - have seen even more dramatic growth.

In May 2024, Chinese brands had barely 1% of the market. A year later, they accounted for 12% of plug-in hybrid sales and 7% of mild hybrids.

MG, the British-origin sportscar brand whose parent is Chinese state-owned, was hit with a 45% EV tariff.

It has leaned into hybrids while pulling back from sales of pure EVs, responding to the new environment "by focusing on other electrified solutions," said Felipe Munoz, an analyst at automotive adviser Jato Dynamics.

"BYD continued to shine and increase its sales despite the tariffs," he said.

The company is now targeting the most popular segments with the Dolphin Surf, an urban runabout, and the Atto 2, a compact sport utility vehicle.

"Instead of stopping them, the tariffs are forcing brands like BYD to introduce more affordable models in the entry segments," Munoz said.