(Yicai) July 24 -- Chinese carmakers took a 13 percent market share in Europe last month, up from 7.9 percent a year earlier, while also ranking ahead of Japanese peers for the second consecutive month.

Geely Automobile Holdings, SAIC Motor, BYD, Chery Automobile, and Leapmotor Technology sold 171,630 units across the European Union, European Free Trade Association, and the United Kingdom in June, according to data released by the European Automobile Manufacturers' Association. That was over 13,000 units more than Japanese carmakers, with the gap widening from about 8,000 units in May.

Car sales across the wider European market stood at around 1.41 million units last month. Leading Japanese brands Toyota Motor, Nissan Motor, Suzuki Motor, Mazda Motor, Honda Motor, and Mitsubishi Motors sold 158,540 units, accounting for about 11 percent of the total.

Whether it is Chinese or Japanese automakers, their market share in Europe remains significantly lower than that of local brands, with that of Volkswagen Group, Stellantis, and Renault reaching 24.6 percent, 13.6 percent, and 10.5 percent, respectively.

Japanese brands are relying on internal combustion engines and hybrid models to sustain their market presence in Europe. However, the relatively slow rollout of pure electric vehicles makes it difficult to match the region's continuously rising demand, constraining their room for growth.

In addition, Chinese brands continued advancing their localization in Europe. For example, BYD's Hungary plant has entered the preparation stage for production, SAIC Motor has finalized plans for a new factory in Spain, and Leapmotor is leveraging partnership factories to achieve local production.

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.

Advancing local production layouts can help Chinese carmakers 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