Chinese brands are rapidly attacking in Europe’s EV Utopia

Oslo, Norway – China is increasing its market share for electric vehicle-friendly electric vehicles, Elon Musk‘ Tesla and other Western auto giants.

From January 2020, from the first delivery of MG cars to affluent Nordic countries, Chinese electric car brands have been occupying about 10% of the combined market share, driven by competitive prices and advanced technology in Beijing.

The explosive growth is particularly noteworthy given Norway’s decision not to impose tariffs on Chinese electric vehicles imports – and its reputation The most friendly country in the world.

Norway’s tariff policies are different from the United States and the European Union, which are responsible for electric vehicles made in China to protect traditionally dominant American and European brands.

Norway, not a member of the EU, explain Previously, tariffs on Chinese electric vehicles were neither related nor desirable. A spokesperson for the Norwegian Ministry of Finance did not immediately comment when CNBC contacted CNBC.

Christina Bu, secretary general of the Norwegian Electric Vehicle Association (NEVA), which represents the country’s electric vehicle owners, said that there are at least 20 different Chinese electric vehicle models in the Norwegian market.

She noted that in recent years, Norwegian buyers’ perceptions of Chinese electric vehicles have “changed a lot”.

“They see (they are) good cars, and they are technically good in terms of price and are also very competitive in terms of price, so it’s a very, very competitive electric car market in Norway. We have a market share of nearly 94% in the first six months of this year.”

According to reports, last month, Chinese electric car manufacturers such as BYD, XPENG and MG were among the 20 companies in the Norwegian new car market. data From the Norwegian Road Federation (OFV).

Sweden’s Volvo and Polestar are also on the list. China’s Geely Holding Group holds important stakes in two automakers.

Meanwhile, Tesla is still Leader in Norway. The U.S. electric car maker, the best-selling brand in Norway to date, has boosted sales for the company’s remodeled Model Y Sports Utility vehicles.

Felipe Munoz, a global analyst at research firm Jato Dynamics, said his definition of Chinese brands includes all companies that design, conceive and produce cars in China, such as MG, which is part of China’s SAIC cars.

But even people like Volvo, Polestar and Lotus will be excluded, even if they are entirely or in part owned by Chinese OEMs.

Based on this definition, Munoz said Norway is the European country where Chinese auto brands have accumulated the largest market share of 10.04% between January and June 2025.

“Does Norway is the laboratory of European electric vehicles due to its regulations, culture and scale. This means it is an entry point for all unknown brands willing to sell electric vehicles in other parts of Africa,” Munoz told CNBC via email.

“From anywhere in Europe, it can require a big investment like in the 5 big markets in Europe. In addition, Norway does not have its own automotive industry, which means outsiders are more likely to gain attractiveness without harming anyone’s interests.”

Luman told CNBC’s “This is a real challenge for Tesla to move forward, competing with new brands that have built their business in Europe.”Squawk Box Europe“On Friday.

When asked if Europe appears to be fighting China losing electric vehicles, Ing’s Luman said “Europe is catching up a little,” but pointed out that China is still ahead.

“There are some backtracks in the United States, too, so the EU and Europe are all in the middle, overall. We do need more new models and more affordable models to convince middle-class drivers to make the transition – we haven’t arrived yet,” Luman said.