Brussels, March 28, 2025 — The market share of Chinese electric vehicle (EV) manufacturers in Europe has dropped to its lowest level in two years, as new tariffs and shifting consumer preferences reshape the industry.
According to data from automotive research platform Dataforce, only 6.9% of EVs registered in Europe in February were made in China, a decline from 7.8% in January.
This marks the lowest market share since February 2023, despite an overall surge in EV sales across the continent.
The drop comes in the wake of the European Union’s decision to impose tariffs on imported Chinese EVs, a move intended to protect local automakers from what the EU claims are unfairly subsidized Chinese vehicles.
European brands, including Volkswagen, Renault, and Kia, have largely benefited from this shift, seeing increased demand and capitalizing on the launch of new models.
Chinese Brands Struggle Amid Rising Competition
China’s dominance in the EV sector has been challenged by these new market dynamics. Although major Chinese automakers like BYD and Xpeng experienced some growth in February, their gains were overshadowed by the overall decline in market share.
The ongoing trade tensions between China and the EU have exacerbated these difficulties, making it harder for Chinese manufacturers to compete on price.
“The tariff imposition has had a clear impact, and European consumers are increasingly looking towards established brands that are launching new and improved EV models,” said an industry analyst from Dataforce.
“With incentives and infrastructure improvements supporting local production, European automakers are in a stronger position than before.”
Tesla’s Decline and Political Controversy
Another major player experiencing a sharp downturn in European sales is Tesla.
The American automaker, which once dominated the EV landscape, has seen a significant drop in its market position, largely attributed to CEO Elon Musk’s controversial political engagements.
Musk’s perceived support for far-right parties in Europe has alienated a portion of the customer base, leading to decreased sales and reputational damage.
Adding to Tesla’s troubles, a global day of protest action against the company is scheduled for Saturday, with activists calling for greater corporate accountability and distancing from political interference.
The protests are expected to take place in multiple cities, highlighting growing consumer dissatisfaction.
Europe’s EV Market on the Rise
Despite the setbacks for Chinese manufacturers and Tesla, the European EV market is thriving. Dataforce reports that overall EV sales surged by 25% in February, driven by new government incentives and growing public awareness of sustainability issues.
European automakers have been quick to fill the gap left by Chinese brands, leveraging their established infrastructure and consumer trust to secure greater market share.
With evolving policies and shifting consumer sentiments, the landscape of the European EV market continues to change. While Chinese manufacturers may struggle in the short term, they could adapt by increasing local production within Europe to bypass tariffs.
Meanwhile, Tesla faces an uphill battle to rebuild its brand amid political controversies and increasing competition from both legacy automakers and emerging EV startups.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
