Therapid growth of China's electric vehicles on Europe's streets and highways isn't just a market share story. In fact, it's an industrial security threat for the bloc. When Chinese manufacturers undercut domestic car brands, the damage goes well beyond margin pressure and shuttered production lines. The much larger and alarming issue is thehollowing out of Europe's industrial core.
While Europe deindustrialises and focuses on WokeismChinese company BYD is building a mega factory larger than San Francisco (Not AI)At this scale, and such low costs, vast human resources, and its own market, it will become impossible for Europe to compete.pic.twitter.com/SnRjvO0Wp9
Goldman analyst Christian Frenesreleased the latest Chinese OEM Competition Monitor, which covers January registrations of Chinese EVs across Europe.
Even though Chinese brand EV sales softened in January, volumes remain elevated at 31,000 units in Jan-26 versus 40,100 in Dec-25 and 8,700 a year earlier, representing a whopping 257% year-over-year growth.
In Europe's Big 5 markets (Germany, the United Kingdom, France, Italy, Spain), Chinese domestic brands nearly topped 5% of market share in January, up from 3.64% one year ago.
Market share growth of Chinese domestic brands outpaces that of local car companies.
"Heading into 2026, we expect Chinese OEMs to further intensify their European expansion plans, e.g., BYD offering c.30% price discounts while aiming to double its volume in Germany this year," Frenes said.
Here's the demand of Chinese and local car companies for January.
Where these Chinese car brands are invading Europe.
Frenes highlights several key developments of Chinese brand expansion across the bloc:
Source: ZeroHedge News
