Core Data Snapshot of the European Market

Market Volume

NEV Penetration Rate (BEV + PHEV)

• Battery Electric Vehicle (BEV) registrations reached 159,810 units, accounting for 20.2% of total registrations. This represents a 26.8% year-on-year growth compared to 125,991 BEV registrations in August 2024.

• Plug-in Hybrid Electric Vehicle (PHEV) registrations stood at 82,684 units, with a 10.4% market share. This marks a 56.3% year-on-year increase from 52,916 PHEV registrations in August 2024.

Structural Changes in Non-Traditional Energy Vehicles (Jan-Aug 2025)

• PHEVs maintained a stable share of 15.7%, similar to that in July.

• Hybrid Electric Vehicles (HEVs) saw their share drop to 50.3%.

National Market Analysis

• Germany retains a significant lead over second-tier markets, with 207,229 new registrations in August.
• France overtook the UK in August, ranking second with 87,849 registrations.
• In terms of energy types, Germany’s BEV registrations performed strongly, rising 45.7% year-on-year to 39,367 units in August. This growth was driven by the new government’s "8-Point Plan" for NEV subsidies, which extended subsidies and tax incentives to boost the BEV market.
• Nordic countries and the Benelux region (Netherlands, Belgium, Luxembourg) continue to lead in NEV adoption.
• Eastern European countries are accelerating their NEV transition: Poland’s BEV market grew by 238% in August, with its market share expanding.
• Southern European countries like Portugal and Spain also show impressive NEV transition speeds. Taking Spain as an example, BEV registrations rose 161% year-on-year in August, while PHEV registrations increased by 163%, indicating strong market demand.

Sales Distribution of Top European Automotive Brands

• Volkswagen Group: Sold 219,048 units in August, a 4.8% year-on-year increase, with a 27.7% market share.

IAA Mobility 2025 (Munich Motor Show)

Key Observations from the Show

1. Full-Chain Participation of Chinese Enterprises

   Chinese companies—covering whole-vehicle manufacturers, component suppliers, technology providers, intelligent driving firms, and software companies—nearly achieved full-chain coverage of the show. Industrial chain globalization and technological collaboration have become new trends. A total of 116 Chinese companies participated in this year’s show, the highest number among overseas countries, representing a 40% increase compared to 2023. At the show, Chinese component suppliers, software firms, sensor manufacturers, and battery companies engaged extensively with European manufacturers. Going forward, collaboration with Europe’s supply chain, compatibility of technical standards, and definition of cooperation models will be crucial.
2. Transformation of Chinese Brands’ Globalization Strategy

   Chinese brands are shifting their overseas focus from "selling cars" to "selling technology, solutions, and services." While new car launches remain the core of the show, more booths showcased key components or technology platforms such as chassis, motors, controllers, intelligent driving modules, in-vehicle software, cockpit systems, and sensor solutions. For Chinese brands, the goal is not only to display whole vehicles but also to demonstrate their comprehensive capabilities in underlying platforms, software competence, and integrated ecosystems of "vehicle + charging + operation"—aligning with the show’s theme of expanding from "automobiles" to "mobility."
3. Pursuit of Differentiated Competition

   Chinese brands need to find "differentiated niches" to carve out competitive paths. Competing head-on with established European automakers in mainstream models may be challenging, so they could focus on specific niche markets to build differentiated advantages. These markets include NEV compact cars, hybrid vehicles, urban micro-mobility tools, in-vehicle service systems, and battery recycling/second-life utilization. For example:

• Leapmotor launched the B05 compact hatchback at the show, targeting young users with a more affordable price range.

• BYD unveiled its first hybrid touring car, the Seal 6 DM-I Touring, promoting a range of over 1,500 kilometers leveraging BYD’s DM hybrid technology.