Automotive News Europe — 2026-08-05
Automotive Industry
Chinese automakers are winning market share in Germany by luring customers away from from European, Japanese and Korean brands, with Hyundai and Kia owners proving among the most willing to switch, according to new industry data.
Chinese brands captured 3.8 percent of German registrations in first-half of 2026, up from 2.2 percent in 2025 as they continue to expand in Europe’s largest auto market. With stagnant overall demand, each gain comes at incumbents’ expense.
A survey conducted by Deutsche Automobil Treuhand (DAT), Germany’s leading automotive market researcher, nearly one in two owners of Korean-brand vehicles would consider buying a Chinese model the next time they purchase a car, with one in five saying they would definitely do so.
Customers of Japanese brands are also showing increasing interest, with almost one-third open to choosing a Chinese marque. However, the share of Japanese-brand owners who see a Chinese vehicle as a definite option is significantly lower, at around 12 percent.
Owners of German brands are considerably more skeptical — only about one in four drivers of German brands said they could imagine making the switch, while more than 30 percent ruled it out entirely.
Korean and Chinese brands target same customers
The willingness of Hyundai and Kia owners to consider Chinese brands comes as little surprise, according to Martin Weiss, head of vehicle valuation at DAT.
Korean and Chinese automakers are targeting the same customer base and Korean brands have already gone through the same market evolution that China’s manufacturers are experiencing, Weiss said.
“Korean brands have long been seen as value-for-money offerings,” he said. “They had to establish themselves against well-entrenched Japanese and German competitors. As a result, their customers are generally more willing to try something new — as long as the price is right.”
Other industry experts share that assessment. “The psychological leap from a Korean brand to a Chinese one is much smaller than the leap from a German brand,” said Benjamin Kibies, senior automotive analyst at market researcher Dataforce.
Hyundai, Kia don’t fear Chinese rivals
Hyundai and Kia, however, say they are not concerned by growing consumer interest in Chinese brands. “We do not fear competition — as long as it is fair,” Hyundai Europe CEO Xavier Martinet said.
Kia, too, is taking the growing competition in stride. Kia’s sales director for Germany, Benedikt Bucher, said buying decisions ultimately depend on product quality, brand trust, warranty coverage, dealer networks and the ownership experience.
The arrival of new competitors is being felt through greater price sensitivity among customers and increased interest in vehicle equipment, technology and electric vehicle offerings, Bucher said.
He said it is not possible to quantify any direct impact on the brands’ first-half sales performance. Both Korean brands continued to grow in Germany in the first half, with Kia registrations rising 3.1 percent and Hyundai up 4.1 percent.
Analysis shows customer migration to MG and BYD.
Without the growing presence of Chinese competitors, those gains may have been even stronger, according to a Dataforce analysis of new-customer migration to MG and BYD.
Dataforce’s analysis found that 7.9 percent of MG’s new customers previously owned a Hyundai, while 4.3 percent switched from Kia. At BYD, 6.5 percent of buyers had previously driven a Hyundai and 5.1 percent a Kia.
While these figures may appear modest at first glance, they need to be viewed in the context of Hyundai’s and Kia’s respective shares of Germany’s new-car market and overall vehicle parc.
Kia accounted for 2.1 percent of registrations in Germany during the first half of 2026, while its share of the country’s total passenger car fleet stood at 1.8 percent as of Jan. 1, 2026. Hyundai accounted for 3.3 percent of Germany’s registrations and 3.2 percent of the country’s passenger car fleet.
“Former Hyundai and Kia drivers are significantly overrepresented among new-car buyers at BYD and MG,” Dataforce’s Kibies said. “Based purely on Hyundai’s and Kia’s market shares, the two Korean brands should rank much lower as sources of new customers for those Chinese manufacturers.”
VW, Ford, Opel lose buyers to MG, BYD
Volkswagen brand accounts for the largest share of conquest sales at both MG and BYD, although this is less significant. Former VW owners make up 11 percent of MG’s new customers and 13 percent of BYD’s, but Volkswagen also represents about 20 percent of both Germany’s new-car market and its overall passenger car fleet.
Dataforce’s figures also show that Hyundai and Kia are not the only brands losing a disproportionate number of customers to Chinese rivals.
Ford and Opel have been particularly affected. Among MG’s new customers, 11 percent previously owned a Ford and 8.3 percent an Opel, despite the two brands accounting for just 3.3 percent and 4.7 percent of new-car registrations, respectively. Toyota is also losing an outsized share of customers to BYD.
To retain existing buyers while attracting new ones, Kia plans to place greater emphasis on its products, brand and customer experience. “Ultimately, we believe lasting success comes from remaining relevant to customers — not from short-term pricing incentives,” Kia’s Bucher said.