Bank of America Highlights Chinese EV Strategies for Europe

Bank of America has outlined which Chinese electric vehicle manufacturers are gaining ground in Europe, revealing a strategic split among the top contenders. The bank’s analysis focuses on powertrain mix and market positioning, highlighting a clear divide between automakers leveraging plug-in hybrid strategies to sidestep tariffs and those betting entirely on battery-electric vehicles.

According to the report published by GN auto tech/ev: electric vehicle, this differentiation is crucial as Chinese manufacturers navigate a complex European regulatory landscape. The bank argues that success in the region is no longer just about pricing, but about structural advantages in technology and product range.

BYD Leads With Dual Powertrain Advantage

Bank of America positions BYD as the standout performer among Chinese brands in Europe. The company commands 47% of Chinese plug-in hybrid volumes and 35% of battery-electric volumes year-to-date. The bank attributes this strength to BYD’s ability to offer both powertrain types, its vertical integration of battery technology, and a broad product lineup that appeals to diverse consumer needs.

This dual approach is seen as the most structurally sound strategy among Chinese peers. Unlike competitors relying on a single technology, BYD’s diversified portfolio allows it to capture market share in both tariff-affected and non-affected segments, reducing its exposure to regulatory shifts.

Chery Targets Hybrid Market Loophole

Chery is identified as the clear specialist in plug-in hybrids, holding 36% of Chinese PHEV share in Europe. However, its presence in the pure battery-electric segment is minimal, capturing only 5% of volumes. The bank interprets this lopsided mix as evidence that Chery’s expansion through brands like Jaecoo and Omoda is geared almost entirely toward hybrids.

This strategy allows Chery to sidestep the EU’s additional duties on pure electric vehicles. Together, BYD and Chery account for 83% of Chinese plug-in hybrid volumes in the region. The bank views this concentration as a sign that the strongest gains belong to automakers with mature, multi-powertrain lineups that can adapt to regulatory constraints.

Leapmotor Faces Higher Regulatory Risk

Leapmotor stands out as a pure battery-electric play, holding 24% of Chinese BEV volumes in Europe with no plug-in hybrid presence. This makes it the most powertrain-concentrated of the major Chinese brands, fully exposed to the EU’s tariff-affected segment. The bank describes this as a higher-risk bet on battery-electric demand specifically.

Despite reporting a 57.2% rise in revenue for the first half of 2026, Leapmotor has lowered its full-year profit outlook. The company cites pressure on margins from raw material costs, highlighting the trade-off between aggressive market expansion and financial stability in a highly competitive and regulated environment.