China hits record Europe car sales on hybrid, EV growth

Chinese carmakers achieved record sales in Europe in September 2025, driven by rising demand for hybrids and EVs, according to Dataforce.

Brands such as BYD, SAIC’s MG, and Chery captured a 7.4% share of total European passenger car sales, surpassing South Korean competitors for the first time.

Nearly half of these sales were in the UK, where lower tariffs and a license-plate changeover contributed to increased demand.

BYD’s UK sales rose 6x from August, and MG and Chery also reported strong gains, especially in plug-in hybrid and EV segments.

Chinese brands accounted for 20% of Europe’s plug-in hybrid sales and 11% of EV sales in September.

Analysts noted that some of these gains came from sales to rental fleets and dealers, rather than direct consumer purchases.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Fleet and dealer channels may flatter the headline growth

Treat the jump in Chinese brand sales with care. Analysts say part of the lift came from rental fleets and dealer sales (self-registrations and demo units), not private buyers, which can puff up short-term share without staying power.
In September, Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV) sales topped all other powertrains in the European fleet market (rental companies and corporate buyers) for the first time 1. Fleet channels helped lift reported Chinese brand growth.
Cars placed into rental or dealer channels usually hit the used market fast. That can create oversupply and residual value (resale price) pressure unless real retail demand shows up.

Opportunity exists in battery health certification for the incoming used EV wave

As Chinese PHEVs and EVs move through rental and dealer channels, a wave of used cars will follow. That builds demand for standardized battery health checks. A battery health certificate sums up remaining capacity and expected range using a common test protocol. It helps buyers, lenders, and marketplaces price risk.
90% of UK dealers want an industry-wide battery health check scheme for used EVs to boost buyer confidence 2. Battery analytics firms such as Aviloo, an independent battery diagnostics provider, offer State of Health (SOH) assessments that can differ from manufacturer reports 3.
Software makers, data infrastructure providers, and investors outside automotive can build or fund battery health certification platforms. Valuation tools and data standardization services can serve lenders, insurers, and marketplaces across Europe’s growing used EV segment.