Chinese brands are carving out space in Austria and Switzerland, but not the way European OEMs feared. The threat wasn't a flood of cheap BEVs but rather the automakers’ strategic flexibility. By mid-2025, hybrids made up half of Chinese OEM sales in Austria. Switzerland started shifting the same direction around summer 2024, once it became clear Europe's charging infrastructure wasn't keeping up.
Chinese brands now hold about 4% market share in each of those countries. In Germany, they're stuck at half that. The difference may be down to buyer loyalty as German consumers stick with familiar and established brands whereas Austrian and Swiss buyers are more willing to try something new.
Over the past five years, especially since Covid, preference has shifted towards alternative powertrains. By "new technologies," we mean systems that support or replace traditional combustion engines: MHEVs (mild hybrids that assist with tasks like engine start or idle), HEVs (full hybrids), PHEVs (plug-in hybrids), and BEVs (battery electric vehicles with no combustion engine). The aim is straightforward: to reduce reliance on combustion engines, cut fuel use and lower emissions.
The DACH region overall is moving towards greener transport with consumers shifting away from combustion engines. Although the move isn't purely environmental. Tax breaks coupled with lower registration fees, fuel savings, and reduced maintenance costs tempt consumers away from ICEs. Hybrids and EVs simply make financial sense, which tends to move people faster than concern about emissions.
Austria specifically leans heavily towards BEVs, though registrations for hybrids are catching up. Switzerland tells a similar story, though combustion engines still dominate. MHEVs and BEVs are neck and neck there, and the gap to ICEs is closing. Interestingly, Switzerland, despite being the smaller market, seems to be adopting BEVs faster than Austria.
Despite their different market sizes, Austria and Switzerland have tracked closely on BEV adoption.
As Europe’s BEV rollout stalled due to patchy charging networks, inconsistent incentives that vary wildly by country, and consumers’ range anxiety that often prevents them from making the leap. At some point, a BEV-only strategy started looking less like a bold move and more like a bet on infrastructure that wasn’t coming fast enough.
The data suggests Chinese OEMs read that shift early. They realized Europe wasn't going to leapfrog straight to full electric, so they broadened the lineup. HEVs and PHEVs became the bridge between combustion engines and BEVs. Austrian and Swiss buyers seem to have appreciated the option (charts 2a & 2b).
Take Austria (chart 2a). Chinese brands started with BEVs only but by July 2025, half the models they sold were hybrids.
Switzerland (chart 2b) came to it a bit later. The shift started around summer 2024. HEVs are now the second most popular choice, PHEVs picking up traction. BEVs, which used to dominate Chinese sales, are losing ground. Probably until charging infrastructure catches up and incentives stabilize.
European carmakers have spent years warning about Chinese BEVs disrupting an industry worth 7% of EU GDP. In Austria, Chinese BEVs hit roughly 11% BEV market share by July 2025. Switzerland runs lower, around 8% by summer 2025, but it's still notable. Both figures sit well above Germany where Chinese OEM’s share of the BEV market at just over 5%.
Outside BEV specifically, market share for Chinese brands has climbed steadily to about 4% for both Austria and Switzerland, more than double what they've managed in Germany (chart 4).
MG dominates in Austria with BYD coming second. Smart leads in Switzerland and remains in third position in Austria. Leapmotor's new to both markets but the early numbers look strong, though they've got a long way to go.
Looking specifically at vehicle models: MG ZS ranks first in Austria, third in Switzerland. In Switzerland, Smart Fortwo and Smart "#1" take the top two spots. Here's what's interesting. These best-sellers aren't all BEVs.
Chinese brands came in betting hard on BEVs and that worked for a bit. But Europe wasn't ready with charging infrastructure gaps, inconsistent incentives and consumer range anxiety. As the shift to new technology slowed, Chinese OEMs adapted their approach.
In Austria, half of Chinese sales are now hybrids. Switzerland's following the same path. Both markets suggest that flexibility beats purity. Across the border, Germany sticks with its traditional brands as Austrian and Swiss buyers are open to new brands.
This shift isn’t just about price. It's about giving people options when the EV transition is still uneven across Europe. Austria and Switzerland suggest that success isn't about betting everything on BEVs. It's about understanding what buyers actually need right now, and moving when the market shifts.