WSJ: Chinese automakers continue to gain ground in Europe

Chinese automakers continued to post strong sales growth in Europe in August, gaining market share as established European manufacturers grapple with weak demand, high costs and intensifying competition.

Registrations of BYD vehicles more than doubled from a year earlier to 26,007 units across the European Union, the U.K., Iceland, Liechtenstein, Norway and Switzerland, according to the European Automobile Manufacturers' Association, or ACEA, cited by The Wall Street Journal in its overview.

Other Chinese manufacturers also recorded significant gains. SAIC Motor registrations rose 32% to 21,214 vehicles, while Leapmotor more than tripled its registrations to 7,630 units.

The gains contrast with weaker performances by major European manufacturers. Volkswagen registrations fell 3.6% to 210,818 vehicles, while Renault registrations declined 4.4% to 71,906.

August is typically a relatively quiet month for European car sales as many dealerships close for summer holidays. However, the sharp difference in registration growth rates highlights the continued expansion of Chinese brands, even though European manufacturers still sell substantially more vehicles in absolute terms.

Chinese automakers have expanded their presence in Europe in recent years, helped by competitively priced vehicles and growing demand for electric and hybrid models. Their rise has added pressure on European manufacturers, several of which have been forced to restructure operations, review vehicle lineups and book substantial impairment charges.

Volkswagen last week cut a key profitability target for the year after warning of about $11.5 billion in impairment charges related to its stake in Porsche AG, difficult market conditions and restructuring efforts. Weeks earlier, the company's supervisory board approved a plan to double planned job cuts to 100,000 as Volkswagen seeks to remain competitive amid U.S. tariffs, higher manufacturing costs and growing competition from Chinese automakers.

Porsche said at the end of July that it would cut 5,000 jobs. The sports-car manufacturer has been hit by falling sales in China, U.S. tariffs and what it described as a premature shift toward electric vehicles. Several electric-vehicle manufacturers have also reduced production in recent years as they struggled to persuade consumers to switch to EVs.

Battery-electric vehicle registrations in Europe rose 52% in August, while hybrid-electric vehicles increased 3.4% and plug-in hybrids gained 13.5%.

Tesla registrations rose 4% to 15,430 vehicles across Europe, a slower pace than the double-digit growth recorded in recent months. In the European Union alone, however, Tesla registrations increased by nearly 53%.

Overall passenger-car registrations rose 5.3% across Europe in August and 4.5% in the EU, according to ACEA. Germany recorded a 2.6% increase, while registrations rose 7.4% in France and 3.2% in Italy.

By Tamilla Hasanova