During the period 2024–2025, the entry of Chinese automotive manufacturers into Europe shifted from limited market presence to a structural factor with long-term impact. Chinese brands are rapidly increasing their market share, particularly in the electric vehicle (EV) segment, positioning themselves as a real competitive alternative to established European manufacturers (JATO Dynamics; Fitch Solutions).
Impact on the European automotive industry
For end consumers, the effect is positive — greater choice and more affordable electric vehicles, supporting the acceleration of the green transition. For Europe’s automotive industry, however, the consequences are structural and strategic.
European manufacturers are facing intensified competitive pressure, affecting cost structures, price margins, and return on investment. Chinese companies are entering the market with highly competitive pricing, shorter product development cycles, and a high level of control over key technologies — most notably batteries, which represent a critical element of the electric vehicle value chain (Financial Times, 2025).
As a result, European automotive groups are being forced to accelerate investments in electrification, optimize production processes, and restructure supply chains. These transformations require substantial capital and generate increased pressure on profitability in the short and medium term.
The EU response: anti-subsidy measures
In response to the growing competitive pressure, the European Union has instruments to protect the internal market through anti-subsidy measures, regulated under Regulation (EU) 2016/1037 on protection against subsidised imports from non-EU countries.
For Brussels, the challenge is strategic. On the one hand, excessive use of anti-subsidy tools could increase prices and slow down the electrification of the automotive market. On the other hand, the absence of adequate corrective measures risks the long-term weakening of Europe’s industrial and technological capacity in the automotive sector.
Bulgaria – a local market within the European dynamic
Bulgaria follows European trends with a certain time lag, but market signals are clear. Chinese automotive brands are entering through official representations, and demand is mainly driven by customers seeking an optimal balance between price, technology, and equipment (Capital, 2026).
For the Bulgarian economy, the effect is dual. On the one hand, competitive pressure on existing market players increases. On the other, new opportunities emerge for integration into value chains: service and distribution activities, logistics, workforce training, and participation in segments related to electromobility and battery technologies.
The “Great Chinese Auto Invasion” should not be seen as a short-term market cycle, but as a long-term strategic challenge for Europe’s automotive industry. Data indicate that competition will be sustained and systemic.
The key question for Europe — and for Bulgaria — is no longer whether to respond, but how to structure industrial and investment policies in a way that preserves competitiveness, technological capacity, and profitability under conditions of an accelerated green transition.
Resources
Autovista Group. (2025). BYD makes quick progress in the European EV market. https://autovista24.autovistagroup.com/news/byd-makes-quick-progress-in-the-european-ev-market/
Capital. (2026). The Great Chinese Auto Invasion. https://www.capital.bg/biznes/pazari/2026/01/16/4872437_goliamata_kitaiska_avtoinvaziia/
Dataforce (през Investor.bg). (2025). European passenger car market data. https://www.investor.bg/a/447-analizi/421426-kitayskite-avtomobilni-marki-razshiryavat-prisastvieto-si-v-evropa-s-novi-modeli
European Commission. (2024). Anti-subsidy investigation on battery electric vehicles from China. https://policy.trade.ec.europa.eu/enforcement-and-protection/trade-defence/anti-subsidy-investigations/battery-electric-vehicles-china_en
Fitch Solutions. (2025). Chinese EV manufacturers in Europe: Market share and outlook. https://www.forbes.com/sites/neilwinton/2025/11/26/chinas-european-ev-sales-acceleration-could-peak-by-decades-end/
Financial Times. (2025). BYD overtakes Tesla in European BEV registrations. https://www.ft.com/content/53ec9a08-1112-4969-8982-2d9f06ee8ea4
JATO Dynamics. (2025). Chinese automakers double European market share. https://www.jato.com/resources/media-and-press-releases/chinese-automakers-double-european-market-share-in-may
