(Yicai) July 24 -- Chinese carmakers captured 13 percent of Europe’s auto market last month, up from 7.9 percent a year earlier, extending their lead over Japanese rivals for a second straight month as companies such as BYD, Geely Automobile Holdings, and SAIC Motor step up local production plans.

Chinese carmakers increased their share of Europe’s auto market to 13 percent last month from 7.9 percent a year earlier, keeping them ahead of Japanese peers for the second consecutive month, as they rapidly transform from being exporters into locally embedded manufacturers, enabling them to gain market share despite trade barriers and tariffs.

Geely, SAIC, BYD, Chery Automobile, and Leapmotor Technology sold 171,630 vehicles across the European Union, European Free Trade Association, and the United Kingdom in June, according to data from the European Automobile Manufacturers' Association.

That was more than 13,000 more than Japanese carmakers, with the gap widening from about 8,000 in May. Toyota Motor, Nissan Motor, Suzuki Motor, Mazda Motor, Honda Motor, and Mitsubishi Motors sold 158,540 units, accounting for about 11 percent of the market.

The market shares of Chinese and Japanese brands is still much lower than that of local brands, with Volkswagen Group, Stellantis, and Renault at 24.6 percent, 13.6 percent, and 10.5 percent, respectively.

Registration figures indicate that total new vehicle sales in the EU, EFTA, and UK stood at around 1.41 million last month.

Japanese brands continue to rely on gasoline-powered and hybrid models to defend their market positions in Europe. But their comparatively cautious rollout of fully electric vehicles has left them less aligned with Europe's growing demand for EVs, constraining their room for growth.

Chinese carmakers are pushing ahead with plans to manufacture in Europe, including BYD's Hungarian factory project, SAIC's planned Spanish facility, Geely's efforts to share production capacity with overseas partners, and Leapmotor's use of partner plants to produce vehicles locally.

Late yesterday, Hangzhou-based Geely said it plans to invest EUR221 million (USD251.6 million) to buy a stake in Ford Motor's plant in Spain to establish a European carmaking joint venture.

These efforts can help Chinese automakers mitigate cost pressures from import tariffs, shorten delivery cycles, and comply with increasingly strict regional regulations regarding carbon emissions and local content.

Editor: Martin Kadiev