The balance of power in the global car market is shifting, with imports of cars and automotive parts from China into the European Union surpassing EU exports to China for the first time, according to an analysis by consultancy EY.
Exports of cars and parts from the EU to China fell by 34% last year to €16 billion ($18.5 billion), the report said. Since 2022, exports have more than halved.
At the same time, imports from China rose by 8% to €22 billion, turning an export surplus into a deficit within just a few years.
A similar trend is visible at the national level. In Germany, Europe’s automotive powerhouse, China was only the sixth most important export market for the country’s manufacturers in 2025.
Although German exports still exceeded imports, the gap has narrowed significantly. Since the peak in 2022, German exports to China have more than halved from around €30 billion to €13.6 billion, while vehicle imports from China rose by two-thirds to €7.4 billion.
If current trends continue, imports and exports could reach parity in 2026, the EY analysis said.
Competition expected to intensify
According to EY expert Constantin Gall, Chinese carmakers currently face challenges in Germany, where Volkswagen, Mercedes-Benz and BMW have so far successfully defended their market shares.
In other European markets, however, Chinese manufacturers have already made notable gains.
Competition is expected to intensify further in 2026, increasing pressure on Germany as an automotive production hub, Gall said.