# Chinese automakers' expansion in European and global markets > Live situation record from CLSTR: https://clstr.news/situations/chinese-automakers-expansion-in-european-markets > Updated: 2026-08-11T11:33:24.000Z. Sources: 14. Developments: 3. Chinese automakers are significantly expanding their presence in European and global markets through manufacturing and strategic partnerships. In Europe, companies such as BYD, Chery, MG, and Xpeng are establishing or expanding production facilities in countries including Hungary, Spain, and Austria. Despite EU tariffs on battery electric vehicles (BEVs) reaching up to 35.3%, Chinese brands achieved a 14.2% market share in the European BEV segment during the first five months of 2026. Sales have surged particularly in the UK and Italy, where government subsidies have seen some models priced as low as €5,000. In the UK, twelve Chinese brands recently captured a 16.5% market share, with the combined sales of BYD and the Chery group exceeding those of Volkswagen. Chery has also secured an agreement to begin manufacturing vehicles in the UK in 2027. To navigate trade barriers, manufacturers are reportedly considering a pivot toward plug-in hybrid electric vehicles (PHEVs). Additionally, companies are pursuing manufacturing partnerships in South Korea to leverage established supplier networks and mitigate tariffs in the U.S. and Europe. Notable moves include Chery Global Innovations’ plan to acquire a stake in KG Mobility and Geely’s significant stake in Renault Korea. In North America, Canada has established an agreement allowing the import of up to 49,000 Chinese-made electric vehicles annually at a 6.1% tariff. In the United States, consumer sentiment is shifting, with a Cox Automotive survey indicating that 40% of potential buyers favor the introduction of Chinese automotive brands due to strong value propositions. ## Claims - Mercedes sold 1,153 electric CLA units in China in the first half of the year. (single source) - Xiaomi delivered over 80,000 SU7 vehicles in the same period as Mercedes' sales figures. (single source) - Global electric vehicle sales exceeded 17 million units in 2024. (single source) - Twelve Chinese automotive brands achieved a 16.5 percent market share in the UK. (single source) - Canada allows the import of up to 49,000 Chinese-made electric vehicles annually at a 6.1% tariff. (single source) - A survey shows 40% of potential US buyers favor the arrival of Chinese car brands. (single source) ## Timeline ### 2026-08-11: Chinese EV manufacturers expand global market presence Chinese EV manufacturers are rapidly expanding globally, capturing significant market share in Europe and establishing new trade pathways in Canada, while challenging traditional luxury brands in China. 5 sources. https://clstr.news/cluster/chinese-ev-makers-challenge-global-automotive-leaders ### 2026-08-09: Chinese EV makers expand European sales and South Korean partnerships Chinese EV makers are surging in European markets despite high tariffs and are turning to South Korean manufacturing partnerships to bypass trade restrictions in the US and EU. 7 sources. https://clstr.news/cluster/chinese-ev-makers-expand-european-sales-and-south-korean-partnerships ### 2026-08-06: Chinese car makers boost European production with new factories Chinese automakers like BYD and Chery are opening or repurposing factories across Europe, adding up to 150,000‑vehicle capacities, while BYD’s Sealion 5 DM‑i hybrid SUV was test‑driven in Hungary, highlighting 2 sources. https://clstr.news/cluster/chinese-car-makers-boost-european-production-with-new-factories --- Cite as: Chinese automakers' expansion in European and global markets. CLSTR, https://clstr.news/situations/chinese-automakers-expansion-in-european-markets