London, 26 October. Chinese carmakers outsold Japanese rivals in Europe over a full quarter for the first time: in September registrations of Chinese-branded cars roughly doubled from a year earlier, taking their share to 12.7% against 11.9% for Japanese brands, according to market researcher Dataforce.
Growth was driven mainly by hybrids, with BYD and Chery among the leaders. Five years ago Chinese brands accounted for barely 1% of European sales, while Japanese manufacturers, including Toyota, spent decades building their position in Europe. Chery's Jaecoo 7 has topped sales charts in Britain, and BYD and Chery are opening their own plants in Europe, in Hungary and Barcelona.
Chinese brands had beaten Japanese ones in individual months before: in May 2026, according to the European Automobile Manufacturers' Association, five Chinese brands sold 138,410 cars in 31 European countries against 130,424 for six Japanese brands. EU tariffs on Chinese electric cars of up to 45.3% did not stop the growth: Chinese makers bet on plug-in hybrids, which are not subject to the extra duties.
The EU tariffs were written against Chinese electric cars, and Chinese brands overtook the Japanese with hybrids.
What it means: A monthly success has become a lasting quarterly one: Chinese brands have been ahead of Japanese ones for three months running rather than in a single month.
Who benefits: BYD, Chery and other Chinese brands, and European buyers, who get cheaper models. Japanese and European carmakers lose out.
Background: Overseas growth is largely forced on Chinese companies: in the first half of 2026 BYD's domestic sales fell 16%, while its overseas sales rose 70%.
