More than 6 million unsold cars: China is preparing to dump its stocks in Europe

China continues its expansion throughout the world, even though its brands were still unknown a few years earlier. Today, there are more than 150 of them and many of them are now determined to make a place for themselves on the European market. We think of MG, BYD and more recently Omoda & Jaecco as well as Geely, among others. And of course, there is nothing innocent about this, as revealed by figures from the Chinese Association of Automobile Manufacturers (CAAM), taken up by the Inovev firm.

Relayed by the Journal de l'Automobile, this indicates that the country will produce no less than 30 million passenger cars in 2025. A particularly high figure, up 10% compared to 2024. But that does not mean that all these cars have found buyers. In fact, over this same period, 23.26 million vehicles were sold. That is a drop of 0.5% compared to 2024. Of course, this may not seem like much, but it is above all proof that the Chinese market is slowing down.

This complicates the lives of local brands, who have to face very aggressive competition. As a result, sales volumes are falling, and manufacturers are seeing their results do the same. The Inovev firm explains that “part of this additional production is therefore intended for export, while another ends up in storage”. Chinese companies are now banking on sales abroad to hope to get by. This is particularly the case for Chery, the world leader in exports.

This explosion in exports has a direct cause: the price war raging between Chinese manufacturers on their domestic market. Faced with fierce competition and fading local demand, brands are increasing promotions and selling volumes abroad that they no longer sell at home. It is this domestic saturation, more than the appetite for Europe, which pushes production beyond borders.

What about Europe?

In 2025, the Chinese giant sent 1.3 million cars outside its native country. It is followed by BYD, with around a million units, then by SAIC Motor, with 900,000 cars. Geely comes in 4th position, with 600,000 vehicles. These four brands alone represent two thirds of Chinese exports worldwide.

And in 2025, exports have globally increased by 260%, while the world number 2 in EVs wants to accelerate the pace. However, it is mainly to Europe that these cars are then sent.

Over the past year, Chinese brands have reached a market share of 6% on the Old Continent. A figure that is constantly increasing, since it rose to 8.3% at the end of March 2026. And in April of that same year, some particularly stood out, such as Leapmotor which posted growth of 404% compared to the same period in 2025. Analysts estimate that cars from the Middle Kingdom could reach 10% of European sales by 2027 or 2028.

Certainly, customs duties and the more restricted EEC bonus with the eco-score have made it possible to limit the invasion. But now, Chinese brands want to focus on plug-in hybrid models, which are not subject to import taxes. This is particularly the case for BYD, which wants to expand its PHEV range and which has just lifted the veil on its new Dolphin G, specifically designed for the European market. At the same time, exports could end up declining. But it will be because the Chinese brands will produce their cars directly here.