Chinese hybrids, EVs storm Munich in latest European push

China’s automakers are readying a new crop of hybrid and all-electric vehicles for Europe, using next week’s Munich auto show to kick off the next phase of their expansion in the region. BYD, Xpeng and Zhejiang Leapmotor Technology are among manufacturers showing off new models at the IAA Mobility 2025 expo, moving to broaden their lineups and extend gains made in recent years. Their push into Europe is intensifying as an EV price war rages at home, while the lucrative US market is practically closed due to trade hurdles. The latest figures from researcher Dataforce show continued strength in Europe for Chinese EVs in July, while hybrid sales reached a record 9.7% share. EVs and hybrids are growing in importance as Europe moves to phase out sales of new combustion-powered cars over the next decade. Chinese brands captured 9.9% of the region’s EV sales in July, after June’s even stronger showing. They took 5.3% of the overall auto market, the third straight month above 5%, according to Dataforce. Trade tensions drive innovation, expansion The Munich show is taking place as trade tensions linger with Beijing following the European Union’s decision last year to impose tariffs on EVs imported from China. Chinese automakers have kept growing anyway, adding more hybrid and combustion models that don’t trigger the duties, forming local sales partnerships and committing to transfer some production to the region. They’re challenging the likes of Volkswagen and Stellantis, which are cutting costs to defend margins in a stagnant European auto market. Chinese players have done especially well in the fast-growing hybrid categories, said Julian Litzinger, an analyst with Dataforce. “The rise does not seem to be over,” he said. With Chinese firms adding more hybrid models, “there is growth potential left.” Sales of plug-in hybrids surged 52% across the EU, U.K. and EFTA countries in July, the European Automobile Manufacturers’ Association said last week, while EV registrations jumped 34% to power the region’s new-car market to its biggest gain in 15 months. BYD leads the hybrid charge vs European giants BYD is among manufacturers leading the push. The company is now regularly outselling Tesla in Europe and is setting up factories in Hungary and Turkey to avoid the EU tariffs. Fresh off its first shipments to Europe from Thailand, BYD will unveil its Seal 06 DM-i Touring station wagon in Munich, part of its push to bring more plug-in hybrids to the region. The model, building on rapid gains in the segment by BYD’s Seal U crossover, will compete with the popular VW Passat. Xpeng plans to bring a revamped version of its electric P7 sedan to the show in Germany, expected to have faster charging and more range, while Stellantis partner Leapmotor will introduce its B05, an electric hatchback to compete with Volkswagen’s ID.3. Local partnerships bypass tariffs, build trust The tariffs have also spurred collaboration, as Chinese manufacturers navigate the new rules and European firms link up with Chinese rivals to stay abreast in areas like software and battery technology. Stellantis reportedly plans to build EVs with Leapmotor in Zaragoza, Spain, near a joint battery plant it will set up with China’s Contemporary Amperex Technology. Xpeng, which cooperates with Volkswagen in China, competes with the German manufacturer on its home turf. China’s Munich contingent will also include dozens of suppliers, demonstrating the breadth of the country’s automotive ecosystem. CATL will show off its latest battery technology, while sensor maker Hesai as well as autonomous-driving startups DeepRoute.ai and Momenta — which is working with Uber on a robotaxi service for Europe — are also making the trip to Germany. Geely-backed Polestar is unveiling the Polestar 5, a high-powered electric grand tourer with an aluminum chassis that’s glued together rather than welded to optimize performance. At the more budget end, Chery Automobile plans to introduce its Omoda and Jaecoo brands in Germany, and will show off EVs and plug-ins including the Omoda 5 and Jaecoo 7. They’re already on sale in the U.K., where Chery last week launched its namesake brand. The company will start with two sport utility vehicles, each in plug-in hybrid and gasoline versions. Chery, which has revived a former Nissan plant in Barcelona with a Spanish partner and plans to produce in the U.K., will offer several models for test drives in downtown Munich. BYD, Xpeng, Leapmotor and Polestar plan to do the same. By Anthony Palazzo and Chunying Zhang

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Chinese hybrids, EVs storm Munich in latest European push