BYD Yangwang U9 electric sports car (Photo by Qu Jinwei/VCG via Getty Images)
VCG via Getty Images
Chinese electric vehicles are barnstorming across Europe, but Germany, the continent’s biggest market, is proving a tougher nut to crack.
German consumers are harder to please and demand higher speeds over long distances which EVs can’t handle. And in the country where Porsche, BMW, Mercedes and Audi are domiciled, they are reluctant to concede anyone else can match these thoroughbreds.
“Chinese manufacturers are really struggling in Germany, accounting for less than 2% of the new car market, which is less than half of the regional average of just over 5%,” Schmidt Automotive Research founder Matt Schmidt said.
“A Chinese incursion here looks the least likely out of all European markets,” Schmidt said in an email exchange.
German drivers have a taste for speed and some of their autobahns still have no limits. EVs are very poor at sustained cruising at high speeds. Even keeping to most of Europe’s 130 km/h (81 mph) speed limit the best-performing high-speed EVs like the Tesla Model 3’s 240 miles would be less than half the range of a cheap diesel.
Brand awareness is strong in Germany. It would take a supersalesman to persuade someone thinking of buying a Porsche, BMW, Mercedes or Audi to consider a NIO, Xpeng, Zeekr or BYD’s Yangwang or Denza.
But sales of Chinese brands in general and EVs in particular were strong across Europe in the first half of 2025 in an overall market that slipped a bit. European sales of sedans and SUVs slid 4.4% in June to 1.3 million. Chinese sales posted a record market share in June surpassing 5%.
“The market share of Chinese car brands in the first half of 2025 almost doubled from the same period last year to a new record 5.1%,” said JATO Dynamics in a report.
BYD, Jaecoo, Omoda, Leapmotor and Xpeng lead
“Five automakers are driving this rapid growth: BYD, Jaecoo, Omoda, Leapmotor and Xpeng. BYD, which has been particularly aggressive in its pricing strategy, registered 70,500 sales in H1 2025 – a year-on-year increase of 311%. In June alone, BYD registered 15,565 vehicles, entering the top-selling 25 brands and outselling Mini and Jeep,” according to the report. Many of these sales were EVs, with some plug-hybrids and internal combustion engines.
Denza D9 (Photo by Matthias Balk/picture alliance via Getty Images)
dpa/picture alliance via Getty Images
In Germany, EV sales advanced 35% to just under 250,000 in the first half, compared with the same period last year. Volkswagen and its brands like Skoda, Audi and Cupra, led by the VW ID.7, provided eight of the top 10 models. The only exceptions were the Tesla Model Y and BMW iX1. Not one was Chinese.
Mercedes, Fords, Hyundais and Toyotas were in the top 10. Not one was Chinese. BYD has been making big progress across other European markets. MG, owned by SAIC Motor Corp Ltd has been selling well in the U.K.
According to Dr Michael Putz, managing partner at Automodicted consulting, Chinese EV makers have big ambitions for Germany, despite initial difficulties. A 10% market share is a credible target.
“Capturing 20% of the German market is possible for Chinese manufacturers, but it will be a bit of a stretch. Over the last 15+ years, the share of non-European car brands in Germany has been stable at around 20%. Breaking through this entrenched loyalty will require great products at a very low price. This way, Chinese manufacturers could buy their way into the German car market by offering generous rebates.” Putz said in an email exchange.
“I think, however, that they will be more than happy with around 10%, which I think is a realistic target; 10% market share corresponds to an annual revenue potential of about $18 billion,” Putz said.
EVs fail at long-distance high-speed cruising
German’s taste for high speeds needs to be addressed, Putz said.
“Most Chinese EVs are not made for sustained high speeds and they will have to work on their product substance like battery thermal management to make sure their cars are fit for the autobahn. They must also communicate this well, so customers realise what their cars are capable of,” he said.
“One thing might help them though is the fact that not many European EVs are made for racing speeds either . EV users have gotten used to the fact that driving fast on highways is not an option if they want to go far on one charge, due to the physics of air resistance. This is a hurdle for EV adoption in general, not limited to Chinese brands,” Putz said.
Zeekr model 001 EV (Photo by Kevin Frayer/Getty Images)
Getty Images
This long-range high-speed cruising weakness in EVs is the truth which dare not speak its name amongst electric car aficionados.
London-based Geotab, which describes itself as a global leader in connected vehicle solutions, posed the question “Summer heat versus speed: what really impacts EV range?”
Geotab said aerodynamic drag has a far greater effect on range.
“The data shows that even modest increases in speed lead to steep range losses. For example, a 65-kWh electric van cruising at 50 mph in 30°C heat with the air conditioning on has a typical range of around 143 miles. Increase that speed to 60 mph, and range drops to 121 miles. At 70 mph it falls further to 103 miles, and by 80 mph, you’re down to just 88 miles. That’s a 39% drop in range between 50 and 80 mph.”
German success key to Europe
“The pattern is similar for electric sedans, though they’re slightly more aerodynamic. At 50 mph at 30°C, you can expect 277 miles. At 60 mph: 251 miles. At 70 mph: 226 miles. And at 80 mph: 200 miles – a 28% drop from the most efficient cruising speed,” according to Geotab.
Schmidt points out the difficulties for the Chinese in Germany are exaggerated because this huge market is the key to success in Europe.
“Given German consumer preferences for patriotic purchasing, the domination of German premium manufacturers in Germany and the fleet market dominance, which requires high levels of stable residual prices to make the financing business models work, results in a Chinese incursion here looking the least likely here out of all European markets.”
“The problem for the Chinese is because Germany is the highest volume market and is key to building European scaling advantages and would play a large part in justifying a local European production facility,” Schmidt said.