Chinese car makers expand presence in Hungary as EU market share climbs

Chinese automotive brands are rapidly increasing their share of the European Union’s new‑car market. By April 2026, Chinese‑origin vehicles accounted for about 8.5 % of all new cars registered in the EU and over 15 % of the electric‑vehicle segment, driven by models from BYD, Geely, MG (SAIC) and Chery. The surge is supported by aggressive pricing and rapid product development, especially in the EV and plug‑in‑hybrid categories.

In Hungary, the trend poses both challenges and opportunities. Traditional German manufacturers such as BMW and Volkswagen have issued profit warnings and announced workforce rationalisations affecting up to 100,000 jobs across the continent, while the local Mercedes plant in Kecskemét is set to cut output by 2025. At the same time, Chinese investment, notably BYD’s battery‑electric vehicle factory in Szeged, promises new employment and growth potential for the Hungarian auto sector, which contributes roughly 4‑5 % of national GDP and employs over 170,000 workers.

The EU is considering policy measures, including extra tariffs and minimum‑price schemes, to level competition without imposing a total ban on Chinese imports. Meanwhile, the popular Chinese Geely E2 model is slated to arrive in Hungary in August, illustrating the concrete rollout of Chinese cars to Hungarian consumers.