The outlook is likely to become increasingly shaped by localisation. With European production expected to begin in Q4, initially focused on BEVs, Chinese OEMs should be better positioned to sustain BEV volumes while reducing tariff exposure.

Chinese manufacturers continued to expand their presence across Western Europe in Q2 2026, with their combined share of new passenger car registrations reaching 10.7%, matching the collective market share of Japanese OEMs for the first time.

According to Schmidt Automotive Research data, China's BYD saw its share of the Western European BEV market contract to 4.4% in June, following 40 months of sequential growth.

30% of all Chinese models from the likes of SAIC's MG brand, BYD, and Chery, which made up 70% of all Chinese models arriving across the 18-market region during the opening half of this year, landed in the UK.

According to an official EU filing dated 5th August, 2026, Porsche AG has exited the Volkswagen Group CO2 pool, which enabled its higher average CO2 emissions from its new car registrations to be averaged across all Volkswagen Group brands in order to meet EU regulatory fleet emission targets.

According to the latest study, featuring a full forecast to 2035, 2026 will continue to be shaped by the wider availability of BEVs at lower price and cost points, with B-segment models starting below €25,000.