The 2026 Paris International Motor Show, which opened on October 12 at the Porte de Versailles exhibition center, laid bare a changing of the guard in Europe's auto industry. Chinese automakers mounted a massive display of electric and hybrid vehicles, while Japanese brands kept a low profile. The contrast underscores a market shift that began earlier this year, according to Chinese outlet First Electric.
Chinese brands dominate the show floor
According to the official exhibitor list, 59 automakers are present. Chinese brands, including Volvo, Lotus, and smart (all Chinese-owned), account for 22 exhibitors—37.3% of the total. That exceeds the combined count of French (10) and German (7) exhibitors and is up from just nine Chinese brands at the previous Paris show. Chery brought three brands (Chery, Omoda, Jaecoo), while Geely's portfolio spans six: Geely, Lynk & Co, Lotus, smart, Volvo, and Zeekr.
Among the highlights, BYD showcased its European-market BEVs (battery-electric vehicles) like the Seal U and Atto 3, and gave the global debut to the Shark plug-in hybrid pickup. Leapmotor, relying on its partnership with Stellantis, displayed the B10, which will be built at a European plant, plus first-showings of the A05 and D19. Xpeng focused on its driver-assistance technology, driving a G9L from Graz, Austria, to Paris—a 1,324-kilometer (823-mile) trip.
By contrast, only Toyota, Honda, and Subaru attended from Japan. Toyota set up a small technology booth focused on hybrids and hydrogen. Honda showcased its hybrid tech with the new Prelude e:HEV. Subaru, the only Japanese brand to hold a dedicated press conference, presented the Solterra BEV and E-Outback, emphasizing its boxer engines and all-wheel-drive heritage.
Chinese brands overtake Japanese in European registrations
The show's dynamics mirror real sales data. European automakers' association ACEA changed its methodology at the start of the year to count Volvo under its parent Geely, which boosted Chinese brands' combined figures. Since May, Chinese automakers have registered more new cars in Europe than their Japanese rivals. In May, five Chinese groups (SAIC, Geely, Chery, Leapmotor, BYD) registered 138,000 units, up 65% year-on-year, versus 130,000 for six Japanese brands (Toyota, Nissan, Suzuki, Mazda, Honda, Mitsubishi), a drop of 3.1%. That marked the first monthly overtake. In June, the gap widened to 13,000 units, with Chinese brands at 172,000 and Japanese at 159,000.
By August, Chinese automakers' monthly European sales exceeded 100,000 units. BYD's cumulative registrations reached 234,000, up 144%, and Chery (including Omoda and Jaecoo) hit 208,000, up nearly 280%—both surpassing Tesla's 190,000 BEV registrations. Toyota Group (including Lexus) led the Japanese side with about 62,000 units in August, up 4.2%, while Honda and Nissan declined.
A report from Germany's Center of Automotive Management (CAM) found that Chinese brands contributed 400,000 of the 500,000 new vehicle registrations added in Europe in the first eight months of 2026. Excluding Chinese brands, the rest of the market grew just 0.3%.
The growth is driven by a powertrain shift. In the EU from January to August, hybrids (HEVs) accounted for 36.6% of passenger car registrations, while BEVs and PHEVs (plug-in hybrids) together made up 31.7%. Chinese automakers have adapted by pushing hybrids and PHEVs, especially after EU countervailing tariffs on BEVs. BYD's August retail sales in Europe reached 25,000 units, with Germany its largest single market at 5,256 units. The UK is the top market for Chinese brands overall, contributing 23% of their European sales, followed by Germany and Spain.
Japanese brands still rely heavily on hybrids and gasoline. Toyota Group's European retail sales in the first eight months were 788,000 units, up about 1%, with hybrids making up 70%. Honda's core is also hybrid, and Nissan's e-Power remains its main technology.
Chinese automakers are also localizing production. BYD's Hungary plant, a €4 billion investment, will start vehicle assembly in the fourth quarter of 2026 with an initial capacity of 150,000 units. Chery is converting a former Nissan plant in Spain with Ebro-EV Motors, and SAIC will build its first European plant in Spain, starting production by end-2028. Geely has signed a joint venture with Ford in Valencia. Leapmotor will share Stellantis' Spanish plant, while Xpeng and GAC will use Magna's Austrian factory. In a symbolic move, Nissan signed a non-binding memorandum with Chery to potentially build cars at its Sunderland plant in the UK.
Sun Xiaohong, former secretary-general of the automotive committee at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told First Electric that the overtake reflects Chinese brands' comprehensive competitiveness centered on electrification. He noted that while Chinese brands lag in industrial ecosystem and after-sales service, the growth trend is sustainable once those gaps are filled.
