BYD Leads Chinese EV Push in Europe, BofA Analysis Shows

Bank of America has identified key Chinese electric vehicle makers poised for success in Europe, noting a significant strategic split between firms leveraging plug-in hybrids (PHEVs) to navigate potential tariffs and those making a pure bet on battery-electric vehicles (BEVs). The analysis, published September 15, highlights BYD as the standout leader with a versatile powertrain strategy.

The Hybrid Advantage

According to BofA's research, BYD is the top performer, establishing a commanding lead across both electrified vehicle categories in Europe. The bank attributes the company's strength to its dual-powertrain lineup, vertical integration of its battery supply chain, and a wide range of products.

BofA's year-to-date 2026 figures underscore BYD's market position:

• It accounts for 47% of all Chinese-made PHEV volumes in Europe.
• It also captures 35% of Chinese-made BEV volumes.

Chery is positioned as a clear PHEV specialist, holding the second-largest share of the Chinese PHEV market in Europe at 36%. In contrast, its BEV volume is only 5%. BofA analysts interpret this as a deliberate strategy to focus its European expansion on hybrids, which sit outside the scope of the European Union’s additional duties on BEVs. Together, BYD and Chery represent 83% of Chinese PHEV volumes in the region.

Pure-BEV Players Face Tariff Headwinds

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In contrast, Leapmotor is highlighted as a pure-BEV play, holding a significant 24% of Chinese BEV volumes in Europe but having no PHEV presence. This concentration, BofA states, makes it a "higher-beta bet" on BEV demand and leaves it fully exposed to potential EU tariffs.

SAIC is characterized by the bank as the established "scale player" among its Chinese peers, with the longest operational history in Europe. It is a steady volume contributor in a more fragmented BEV segment, where BYD, Leapmotor, and SAIC collectively hold 74% of the market share for Chinese brands.

What It Means for the Market

The BofA analysis suggests that Chinese automakers are not a monolith, and investors should assess their distinct European strategies. BYD's approach is viewed by the bank as the "most structurally sound" and less reliant on pricing alone.

Conversely, Leapmotor's pure-BEV focus presents a different risk profile, one directly tied to European regulatory decisions and consumer adoption of all-electric cars. SAIC's position as an incumbent offers stability but potentially less aggressive growth compared to its rivals.