Chinese automakers pressure European car makers, XTB analysis warns

A new XTB analysis says Chinese brands such as BYD, Chery, SAIC and Leapmotor are rapidly expanding in Europe, having doubled their combined market share by 2026 despite EU tariffs and rising geopolitical tensions. Their advantage in battery supply chains lets them launch advanced electric models at prices that European manufacturers cannot match without eroding margins.

The report cites Volkswagen as a prime example of the strain, noting that the German group is weighing the closure of four plants in Germany and could cut up to 100,000 jobs. Stellantis is also losing ground, while BMW and Mercedes‑Benz appear comparatively resilient. Renault’s low‑cost Dacia line and hybrid partnerships are highlighted as vulnerable to the Asian price offensive. XTB concludes that European auto makers face a “reality shock” and that investors are penalising firms that lag in structural reforms and electric‑vehicle transitions.