Europe suffers hottest summer on record

Chinese electric car sales surged to an all-time high in Europe, accounting for 14.2% of the market in the first five months of the year according to Schmidt Automotive Research. This marked a significant increase of nearly five percentage points compared to the same period in 2025. Brands like BYD, Chery, SAIC, and Xpeng have been actively targeting Europe, aiming to dominate the global electric vehicle market.

Despite EU tariffs of up to 35.3% and an additional 10% import duty for some Chinese manufacturers, sales continued to rise. The UK, which is exempt from these extra levies, became the largest European market for Chinese electric vehicles, accounting for a quarter of the total sales. Italy also contributed significantly, representing one-fifth of the total sales, though this figure is considered an anomaly.

Leapmotor, a Chinese manufacturer, managed to sell their cheap T03 electric cars at a subsidized rate of €5,000 in the UK, capitalizing on government subsidies. Schmidt suggests that China's share of the BEV market may have peaked due to their shifting focus towards plug-in hybrid electric vehicles (PHEVs), which are not subject to EU tariffs.

This could potentially give European manufacturers a competitive edge. However, with the loophole set to close in the next 12 months, Chinese manufacturers are expected to prioritize PHEVs for now. European PHEVs are currently uncompetitive compared to their Chinese counterparts, according to Volkswagen CEO Oliver Blume, who called for changes in the EU's levies.

Tesla also saw a rebound in sales across Europe, driven by a surge in demand for their more affordable Model 3 and Model Y models.