The Rise of China: Automakers Challenge Europe’s Market Dominance
Chinese automakers are rapidly closing the gap with their European rivals — and in some cases, overtaking them. According to Lasse Kristoffersen, CEO of Wallenius Wilhelmsen (the world’s largest car‑carrier operator), Chinese brands are seeing surging demand across Europe, Latin America, Africa, and Australia.
China’s Global Expansion
- China exported 5.86 million vehicles in 2024, up 19.3 % year‑on‑year.
- Of these, approximately 4.96 million were passenger cars.
- In the first half of 2025, China exported 3.48 million passenger vehicles, up ~18 % year‑on‑year.
- In May 2025, Chinese brands captured 5.9 % of Europe’s new-car registrations, more than double their 2.9 % share in May 2024.
- Overall, Chinese brands grew European sales by 91 % year‑on‑year in H1 2025, reaching a 5.1 % market share.
China’s Competitive Edge
Chinese automakers are leveraging:
- Aggressive pricing to attract new markets.
- Rapid electrification, with NEVs (battery EVs + PHEVs) making up 48.7 % of China’s new car sales in July 2025.
- High-volume exports, including 212,000 NEVs in May 2025, more than doubling from the previous year.
Meanwhile, European automakers are struggling with factory overcapacity, slow EV adoption, and rising production costs, leaving them exposed to the Chinese expansion.
Shipping Growth Highlights China’s Global Push
Wallenius Wilhelmsen has seen strong increases in shipments of Chinese vehicles worldwide, indicating that China’s export boom is not just domestic hype — it is reshaping global automotive flows.
The Bigger Picture
- Chinese brands are no longer just competitors in Asia; they are global players challenging long-established European automakers.
- Europe’s historical market leaders now face intense competition from Chinese OEMs in price, technology, and NEV offerings.
- By 2025, China’s NEV exports alone have become a major factor in reshaping the EV landscape worldwide.
As Chinese brands continue to innovate and improve their global outreach, the automotive industry is poised for a significant shake-up, with European companies facing new challenges in maintaining their market leadership.