Chinese electric cars are on track to reach a record 14.2% market share in Europe in 2026 before hitting a “wall”, according to a new report from Schmidt Automotive Research (SAR).
EU tariffs sit at 35.3% for Chinese EVs, on top of the standard 10% import duty. Despite these penalties, Chinese brands including BYD, Chery, SAIC and Xpeng, have targeted Europe for exports, selling 171,800 vehicles across Western Europe in the first five months of 2026, the report states.
Italy and the UK have been key entry points for Chinese EVs due to favourable or absent tariffs. The UK does not impose extra anti-subsidy tariffs on Chinese EVs unlike the US and the EU.
SAR’s analysis shows that the UK leads European imports of Chinese EVs, accounting for roughly a quarter (26%) of sales across the 18 biggest Western European markets, followed by Italy at 20%. When the Italian government put in place favourable purchase subsidies, China's Leapmotor quickly capitalised by sending thousands of its cheap T03...