There is one type of Chinese vehicle that’s getting tons of attention in Europe. Thanks to a demand for plug-in hybrids from Chinese automakers, the country’s sales in Europe doubled in February. With 78,962 vehicles sold, China now makes up 8% of the market share.
According to a report by Automotive News, plug-in hybrids from brands like BYD and Chery have been the “biggest driver” of China’s growth in Europe. Sales were up 313% in February, with 20,227 PHEV sales, making up a quarter of Chinese sales in Europe last month.
One reason for the rapid growth in PHEV sales is that the European Union does not apply tariffs on plug-in hybrids, unlike those on full-electric cars from China. This factor led many Chinese brands to pivot to plug-in hybrids to avoid the tariffs, which add up to 35% to the European Union’s 10% import duty. Overall PHEV sales increased by 46% in February, thanks to 56,172 sales, with China making up 36% of this figure. Five of the top 10 best-selling PHEVs in February came from China.
BYD Seal U becomes Europe’s top-selling PHEV
One vehicle from China stood out last month: the BYD Seal U. In February 2026, it had 5,506 sales, making it the best-selling PHEV. This “eco-conscious” SUV has a design inspired by the ocean, meant to look futuristic and refined. Indeed, the exterior adds a bit of flashiness to the usual boxy, safe design, thanks to its many stylish lines and a rounded rear with a continuous, thin taillight. Like the ocean, it definitely has a bit of a flow to it. The interior has a floating center console and clean touches reminiscent of Tesla’s stark cabin. Its total range is over 700 miles and charging from 30 to 80% takes about 35 minutes. It starts at $43,000.
Chery’s Jaecoo 7 was next with 2,971 sales, followed by the BYD Atto 2 with 2,197. The ninth spot was taken by the BYD Seal 06 with 1,883 sales, followed by Chery’s Omoda 9 with 1,803.
In terms of overall brand success, MG was the best-selling Chinese brand, including all powertrains. In February, it had 21,827 sales compared to BYD’s 18,059 and Chery’s 16,166. In February 2025, MG was way ahead of BYD and Chery, but the gap is closing as more automakers offer affordable PHEV options.
These same automakers have been eyeing Canada ever since the country opened its borders to a limited number of imported Chinese EVs. We’ve personally predicted that the BYD Seal U will be coming to Canada after becoming the best-selling PHEV in Europe. However, BYD sells a lot more of its SUVs and utility vehicles in Australia, which could point at vehicles like the BYD Shark 6, a small plug-in hybrid pickup, being another popular option for Canada.
We also believe that Chery will be sending over vehicles soon, based on the spokesperson’s telling comments. We predict the Jaecoo and Omoda lines as well, although Canada might get the Jaecoo 5 and 6 or the Omoda 5. Nothing has been confirmed for either brand regarding plans for Canada, but the success of its PHEVs in Europe could influence them.
This comes as many automakers outside of China give up on electric vehicles. The country’s continued dominance in this segment has a lot of automakers discontinuing current models and canceling future plans. When Honda canceled its upcoming 0 Series lineup, it stated: “In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”
Meanwhile, Ford is hoping to compete with China, revealing an upcoming lineup of electric vehicles priced under $40,000 for 2027. With China still barred from the United States, Ford is hoping its “American innovation” will offer alternatives that won’t keep Americans pining for the Chinese EVs coming to Canada. Fellow American automaker Tesla is opening a battery facility in the United States, aiming to make EVs more cost-effective with a stateside supplier. And whatever they’re doing with robots will benefit too, I guess. My guess, however, is that it will be hard to ignore these cheap, futuristic PHEVs coming to Canada.
Talk about FOMO.
