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A showroom featuring electric vehicle models by BYD. (Photo courtesy of BYD) |
[Alpha Biz= Kim Minyoung] Chinese-made vehicles are rapidly increasing their market share in Europe, intensifying pressure on established imports including Korean brands. In response, Hyundai Motor and Kia are accelerating plans to launch Europe-focused compact electric vehicles (EVs) to stay competitive.
According to the 2025 annual report by the European Automobile Manufacturers’ Association, the share of vehicles produced in China and sold in the European Union rose from 5% in 2024 to 7% last year. Imports from China surged 30.7% year-on-year to over 1 million units, marking a record high and solidifying China’s position as the EU’s largest vehicle import source.
While Korean and Japanese brands maintained relatively flat market shares—3% and 4% respectively—Chinese automakers have rapidly expanded their presence. BYD, for instance, recorded a 162.7% increase in European sales in the first two months of the year, selling 36,069 units.
Meanwhile, Hyundai and Kia saw combined European sales decline 8.4% year-on-year to 143,457 units, partly due to weaker performance of key EV models such as Ioniq 5, Kona EV, EV3, and EV6.
To counter this trend, Hyundai and Kia are rolling out compact EVs tailored to European demand. Kia plans to introduce its strategic model “EV2” at a price point of around €26,000—approximately €390 cheaper than comparable BYD models—aiming to compete on affordability. Hyundai is also set to unveil its compact electric SUV, the Ioniq 3, in Milan, Italy, later this month, with a full launch expected in the second half of the year.
The shift comes as Europe’s EV market increasingly favors smaller, lower-cost models. EV sales in Europe reached 379,604 units through February, up 14.8% year-on-year. Local automakers such as Volkswagen and Renault are also expanding their compact EV lineups to keep pace with the growing demand.
알파경제 Kim Minyoung Reporter(kimmy@alphabiz.co.kr)
