Europe

Chinese auto imports pose an existential threat to even Europe’s most iconic brands. But the threat is moving into a higher gear, while the EU hesitates.

• China exported over 5 million vehicles in 2025, with about 1.6 million going to Europe; Chinese EV market share in Europe exceeded 10% in early 2026.
• BYD overtook Volkswagen as China's best-selling car brand in 2025, and has entered the European market with models priced 20-30% below comparable European EVs.
• The European Commission's anti-subsidy investigation, launched in October 2023, has yet to result in tariffs, with a decision now expected in October 2026.