Having covered Eastern Europe and Central Asia, let's now shift our focus to the birthplace of the automobile—Europe—and examine how Chinese brands are performing in the major local markets today.

01

German Market

As the largest market in Europe and the country with the strongest automotive industry, Germany saw new car sales reach 694,000 units in the first quarter of this year, a year-on-year increase of 4.1%. Globally, this volume is not particularly large, but for Chinese brands going overseas, the importance of the German market far exceeds its actual market size.

If we also consider Škoda and Seat as local brands, then the top seven positions in the first quarter's sales Top 10 are all German local brands, with their combined market share reaching 58.4%. Among them, the Volkswagen brand is far ahead, accounting for 18.7% of the share. In the luxury segment, the rankings are Mercedes-Benz, BMW, and Audi, respectively.

Among non-local brands, Ford, Hyundai, and Toyota rank 8th to 10th, with sales very close to each other, and their shares are all above 3%. As for Tesla, it only ranked 17th in Germany in the first quarter, with sales of 13,000 units, a year-on-year decrease of 36.7%, essentially still a niche brand.The best-performing Chinese brands are MG and Roewe, whose sales are combined, selling 4,441 units in Germany in the first quarter, with a market share of only 0.6%. Others, including Polestar, Great Wall, BYD, etc., all sold three-digit numbers in Germany in the first quarter, but the growth rates of Great Wall and BYD are quite eye-catching, and they are still in a rapid growth phase.

Advertisement

NIO entered the German market earlier, but its sales are quite average, with 102 units sold in the first quarter, a year-on-year decrease of 25%, and its performance in Europe is not ideal.

In terms of models, those with statistical data are basically SAIC models. The best-selling model is the MG 4, which sold 2,009 units in the first quarter, already very close to the 2,565 units of the ID.3, and the Tesla Model 3 only sold 1,790 units in the first quarter. That is to say, among pure electric models in Germany, the MG 4 can already be considered a hot-selling model.

The MG ZS, which is the most popular overseas, also performs well in Germany, with 1,285 units sold in the first quarter, a year-on-year increase of 1.2 times. In addition, models such as the RX6 and MG 5 each have sales of over 500 units.United Kingdom Market

Among European countries, the UK's market size ranks second only to Germany, with new car sales reaching 546,000 units in the first quarter, a year-on-year increase of 10.4%.

In terms of specific vehicle types, in addition to pure fuel vehicles (petrol and diesel cars), there are statistical data for HEVs, PHEVs, and BEVs. Among them, BEVs, which sold the highest, had sales of 84,000 units in the first quarter, accounting for 15.5% of the market share, which is already quite high. However, compared to the same period last year, there was no increase.

PHEV sales were nearly half of BEV sales, with 42,000 units sold in the first quarter, and a year-on-year growth rate of 34%. In addition, HEV sales were 74,000 units, with a market share of 13.6%, which is also basically flat compared to the same period last year.

According to China's definition of new energy vehicles, the UK's new energy penetration rate for BEVs and PHEVs in the first quarter reached 23.3%, close to a quarter, which is similar to the level in our country a year ago. However, the growth momentum is far behind.At the brand level, the distribution of brands in the UK market is quite balanced. Among the top 10 best-selling brands, German, Japanese, American, and Korean brands are all represented, with no single brand or category dominating the market. The highest-selling brand, Volkswagen, does not have a sales gap of more than half compared to Hyundai, which ranks tenth.

Among Chinese brands, MG almost made it into the top 10 in its home country, with a quarterly sales volume of 23,000 units, just over 300 units behind Hyundai in tenth place, accounting for a 4.2% share of the local market. However, apart from MG, only BYD and Ora have some sales presence. BYD sold 1,278 units in the UK in the first quarter, and due to its late entry into the market, its potential for future growth is promising.

In terms of models, the only data available is for the MG HS, which sold 10,028 units in the UK in the first quarter, ranking ninth on the overall sales chart, which can be considered a minor hit in the local market.

Lastly, Tesla's sales in the UK fell by 11.9% year-on-year in the first quarter, with 13,000 units sold, ranking 16th. However, in the new energy market, the Model Y sold 5,602 units in March alone, virtually unbeatable.

03

French MarketAs the second-largest automotive power in Europe, France's sales volume in the first quarter reached 445,000 units, a year-on-year increase of 5.7%.

In terms of sales composition, the share of gasoline and diesel vehicles in the first quarter is declining. Combined, their share shrank from nearly 50% last year to just over 40% in the first quarter of this year. The sales of HEV hybrid vehicles surged by 33.4%, climbing to 28.1%.

In the new energy sector, PHEV models sold 38,600 units in the first quarter, with a market share of 8.7%, which is essentially consistent with the same period last year. BEV pure electric vehicle sales increased by 23.6%, reaching over 80,000 units, and the market share also rose to 18%. Together, PHEV and BEV account for a 26.7% penetration rate of new energy vehicles in the French market, exceeding a quarter.

At the brand level, Peugeot and Renault rank first and second, with sales volumes very close to each other, each holding a market share of about 15%. Combined, these two brands account for exactly 30% of the market share. The third and fourth places are occupied by Dacia and Citroën, both French domestic brands, with market shares of 9% and 8%, respectively. Together, these four brands hold a total market share of 46.7%, leaving the remaining market primarily to overseas brands.

Among the top 10 brands, the only non-European brand is Toyota, which ranks fifth with a 7.2% share. The rest are mainly mainstream and luxury German brands, with Fiat from Italy barely making it to the tenth place, with a market share of less than 3% in the first quarter.The best-selling Chinese brand is MG, which sold 4,809 units in France in the first quarter, but experienced a 7% year-on-year decline. Brands such as BYD, Lynk & Co, and Leapmotor have much lower sales, with Lynk & Co even suffering a staggering 73.4% drop, indicating a rough ride in the European market. BYD, on the other hand, sold nearly a thousand units in the first quarter, and its growth potential is promising.

As for Tesla, it sold 11,000 units in France in the first quarter, ranking 13th. Its sales volume is comparable to that of the UK and Germany, not particularly leading overall, but it remains a frontrunner in the new energy sector.

In terms of models, the best-selling Chinese car in the French market is also the MG 4, with 3,516 units sold in the first quarter. This places it seventh on the list of pure electric vehicle sales in France for the quarter, just over a thousand units behind the fifth-ranked Model 3. However, the best-selling electric vehicle in France, the Peugeot e-208, sold over 10,000 units in a quarter, outperforming the Tesla Model Y.

BYD's Yuan PLUS, Seal, and Dolphin are its mainstays in the French market, while Lynk & Co mainly focuses on the 01 model locally, with first-quarter sales dropping to just over 200 units.That is to say, the Chinese car models currently entering the French market are primarily pure electric vehicles, and major exporters like Chery and Great Wall may face some difficulties there. Considering that small electric vehicles are more popular locally, if Wuling's Bingguo can be introduced to the French market through MG, it may also have a certain chance.

04

Italy

Italy's market size is very close to that of France, with a first-quarter sales volume of 451,000 units, and the year-on-year growth rate is the same as France's, at 5.7%.

However, there are still significant differences between Italy and France in terms of sales composition. In the first quarter of this year, the combined share of gasoline and diesel vehicles in the Italian market was 46.2%, which is similar to France, but the sales of PHEV and BEV models fell by 24.1% and 18.5% respectively in the first quarter, with the overall new energy penetration rate being only 6.1%.

In contrast, the share of HEV models in Italy is as high as 38.3%, and it is still growing.At the brand level, the Italian domestic brand Fiat is the only brand with a share exceeding 10% in the local market. However, aside from Fiat, the Top 10 is composed of Japanese, German, French, and American brands, with Toyota and Volkswagen ranking 2nd and 3rd, respectively, both having shares over 7%.

The Chinese brand with the highest sales is still MG, which sold 9,927 units in the first quarter, a year-on-year increase of 106.9%, achieving a market share of 2.2%, but only ranking 19th. Chery's sales through its local DR Motor are also considerable, with 4,064 units sold in the first quarter, a 41.4% increase compared to the same period last year.

BYD has only recently entered the Italian market and currently has very few sales. Lynk & Co has also experienced a significant decline in Italy, with a year-on-year drop of 80.6% in the first quarter, selling less than 300 units.

In terms of models, the main models sold by Chinese brands in Italy are also very different from those in the French market. The well-selling MG ZS and HS are both fuel-powered vehicles. As for the specific models sold by Chery, there is no data available, but it is likely that they are also fuel-powered models.

As for Tesla, its sales in Italy only rank 28th, with only 3,720 units sold in a quarter, and it has also faced a nearly 20% year-on-year decline. The significant difference in preference for new energy between Italy and France, two Western European countries that are neighbors, also demonstrates the complexity of the European market.05

Spanish Market

Compared to Germany, France, and Italy, the Spanish market is significantly smaller, but it remains an important market on the European continent that should not be overlooked, and it also has a certain automotive industry. In the first quarter of this year, new car sales in Spain reached 245,000 units, a year-on-year increase of 3.1%.

The brand with the highest sales is Toyota, which is also one of the few brands in the Top 10 that has shown a clear increase, with sales of 23,000 units in the first quarter, accounting for nearly 10% of the market share. However, apart from Toyota, there are no other Japanese brands in the Top 10. On the other hand, Kia and Hyundai, which are ranked 3rd and 6th respectively, have a combined market share of over 12%.

The other major players are European brands. Seat, which was born in Spain, ranks second, while Peugeot Citroën and Renault, as well as Germany's Volkswagen and BMW, all hold a certain share of the market.MG is still the best-selling Chinese brand locally, with a significant increase in sales of 1.1 times in the first quarter, ranking 16th with a market share of 2.8%, which is almost twice that of Tesla in the area.

Chery's Omoda has been outperformed by BYD in local sales, although BYD only sold over 400 units, it is currently on the rise. As for Lynk & Co., it continues to experience a significant decline in Spain.

In terms of models, MG's main sales in Spain are the ZS and HS fuel SUVs, with the ZS being particularly strong, selling 5,000 units in a quarter, while the electric sedan MG 4 only sold 674 units. BYD's Atto 3 only sold 175 units, which is a significant gap compared to MG in the local market.

06

Dutch Market

Compared to the aforementioned countries, the Netherlands has few local automobile brands. Under these circumstances, the first and second places in the Dutch market are occupied by Toyota and Kia from outside Europe, while Volvo ranks third with sales far exceeding those of mainstream brands such as Mercedes-Benz, BMW, Audi, Volkswagen, and Peugeot.And in the Netherlands, MG is no longer the best-selling Chinese brand—Lynk & Co. sells the most, with a significant drop of 74.9% in the first quarter, but still managed to sell 728 units. In second place is BYD, which saw a 93% increase in the first quarter, selling 550 units and surpassing MG, which experienced a 51% decline.

Additionally, new energy brands such as Polestar, XPeng, Zeekr, and NIO have a certain sales presence in the Netherlands, indicating that the local acceptance of new energy vehicles is stronger than in many other Western European countries.

07

​Swedish Market

As one of the traditional automotive powerhouses in Europe, Sweden's market size is much smaller, with less than 60,000 units sold nationwide in the first quarter, a year-on-year decrease of 5.5%.In terms of brand presence, Volvo undoubtedly ranks first, accounting for 17.9% of the market share, which is almost double that of the second-place brand, Volkswagen. Toyota and Kia are ranked third and fourth, respectively, but both have experienced a decline, especially Kia, which saw a drop of more than 20% year-on-year. In countries such as Germany, France, and Italy, Tesla's ranking is outside the top ten, but it has climbed to fifth place in Sweden, surpassing Germany's Mercedes-Benz, BMW, and Audi.

Previously, the best-selling Chinese brand in Sweden was MG, but it experienced a significant drop of 62% year-on-year in the first quarter, being overtaken by Polestar, which saw a substantial increase. Both brands have a market share exceeding 1%. However, Lynk & Co. also experienced a significant decline in Sweden, selling only 135 units in the first quarter.

New energy brands such as BYD, Zeekr, XPeng, and Ora have a minimal presence in Sweden, but they have made their debut in the local market. NIO's situation is also not optimistic, with a year-on-year decline of 31.7% in the first quarter, selling fewer than 30 units.

In terms of specific models, the Polestar 2, which has lost its presence in China, is currently experiencing a significant increase in sales in Sweden, outperforming electric vehicles like the MG4 and Zeekr 001. However, relying solely on the Polestar 2 is clearly insufficient to support long-term growth.

Summary by Jia Shi:Through the above analysis, it can be seen that in the European market, the Chinese brand that has the most dazzling performance is basically MG. In some markets, the sales volume of MG alone is equivalent to the total of all other Chinese brands. In addition to MG's own product strength and marketing efforts, this result is certainly inseparable from MG's brand identity originating from Europe.

In fact, in terms of product strength, there are many car companies in China that are more competitive than MG. If they can promote their business in Europe through cooperation with local brands, the effect may be much better than it is now, and it may even be possible to significantly surpass MG's current achievements, just like China.

Europe is not a monolithic entity. Countries that focus on new energy, such as BYD, have already achieved dazzling growth. However, some markets still focus on fuel or HEV hybrid vehicles. Even in the first quarter of this year, the highest growth in many countries was not in BEV or PHEV, but in HEV hybrids. This is also an important obstacle for Chinese new energy vehicles to expand into the European market in the future.