Chinese brands are rapidly making inroads in Europe’s EV utopia

OSLO, Norway-China is a market share in Electric vehicle friendly Norway, presenting significant competition for Elon Musk Tesla And other western auto veterans.

From the first delivery of an MG car in the Amir Nordic country in January 2020, Chinese EV has gone to capture a joint market share of about 10%, operated by the competitive pricing and advanced technology of Beijing.

Explosive growth is particularly notable, given the decision of Norway not implementing tariffs on Chinese EV imports as well as its reputation as the world’s most EV-friendly country.

Norway’s tariff policy has distinguished it from both the US and the European Union, with both duties on the Chinese -made EV to protect the traditionally prominent American and European brands.

Norway, who is not a member of the European Union, has earlier stated that it is neither relevant nor desirable to slap the tariff on Chinese EV. A Norwegian Finance Ministry spokesman was not immediately available to comment on contact by CNBC.

Norwegian EV Association (NEVA) general secretary Christina BU, who represents electric car owners in the country, said at least 20 different Chinese EV models are currently available in the Norwegian market.

He said that the idea of Chinese EV among potential Norwegian buyers has “changed” in recent years.

“They see that [they are] Good cars, technically they are good and also quite competitive when they come at a price. So, it is indeed in Norway, actually competitive EV market. We are close to 94% market share in six months this year, “BU told CNBC during an interview at Neva’s office in Oslo.

According to data from the Norwegian Road Federation (OFV), Chinese EV manufacturers like ByD, XPENG and Mg were last month among the top 20-bound companies in Norway’s new car market.

Sweden’s Volvo and Polstar were also on the list. China’s wet holding group holds an important stake in both car manufacturers.

Meanwhile, Tesla remains a leading player in Norway. The US EV manufacturer was the best -selling brand in Norway in June, with the demand for the firm’s revived model Y Sports Utility Vehicle.

Felip Munoz, a global analyst of research firm Jato Dynamics, said that in its definition of a Chinese brand, all businesses have been included that make cars that are fully designed, imagined and manufactured in China – such as MG, which is part of China’s SAIC motor.

The choice of Volvo, Polstar and Lotus, however, will be excluded, even if they are completely or partially owned by a Chinese original equipment manufacturer.

Based on this definition, Munoz said that Norway is the European country where Chinese car brands have deposited their largest market share at 10.04% between January and June 2025.

Munoj told CNBC by email, “Due to its regulation, culture and size, Norway is the laboratory of Europe for EVS. This means that it is in some way the entry point for all unknown brands that are willing to sell EVS in the rest of the continent.”

“It is easy to start anywhere in Europe and there is no need for large investment in large 5 markets in Europe. In addition, Norway does not have its own auto industry, which means that it is easy for an outsider to get traction without hurting anyone’s interests.”

Senior sector economist Rico Luman for transport and logistics in Dutch Bank ING said that surveys have shown that European drivers enjoy Chinese EVS driving.

Luman told CNBC’s “Squalk Box Europe” on Friday, “So, this is a real challenge for Tesla to compete with new brands that are creating their presence in Europe.”

Asked if Europe is losing its EV battle with China, Luman of ING said, “Europe is holding a little,” but noticed that China is far ahead.

Luman said, “There is some backcracing in the US, so the European Union and Europe are normally somewhere.