Chinese car brands MG and BYD are making notable progress in Germany’s auto market by winning over customers from established Korean brands like Hyundai and Kia. New data shows these Chinese automakers increased their share of German new car registrations to 3.8% in the first half of 2026, up from 2.2% in 2025.
Hyundai and Kia Owners More Open to Chinese Brands
According to a survey by Germany’s automotive research group Deutsche Automobil Treuhand (DAT), nearly half of current Hyundai and Kia owners would consider switching to a Chinese brand on their next purchase. About 20% said they would definitely buy a car from MG or BYD. In contrast, only around 25% of German brand owners said they might switch, with over 30% ruling it out entirely.
Japanese-brand customers are also showing interest, though fewer are committed to making the switch than Korean-brand owners.
Why Chinese Brands Appeal to Korean Car Buyers
Experts say the overlap in target customers explains why Hyundai and Kia’s buyers are more willing to try Chinese cars. Martin Weiss from DAT notes Korean brands, once challengers to established Japanese and German names, attract buyers open to new brands if the price is right.
Benjamin Kibies, an analyst at Dataforce, adds that mentally shifting from a Korean to a Chinese car is easier than switching from German brands to Chinese ones. This likely helps MG and BYD win a growing share of former Hyundai and Kia customers.
Hyundai and Kia Continue to Grow, Despite Chinese Competition
Despite the shift, Hyundai and Kia’s sales in Germany still rose in the first half of 2026—4.1% for Hyundai and 3.1% for Kia. Both companies say they are not worried about Chinese competitors but note that shoppers are becoming more price-sensitive and interested in features and electric vehicles.
Kia’s Germany sales director, Benedikt Bucher, said the brand focuses on quality, warranty, dealer support, and overall ownership experience to keep customers loyal.
Chinese Brands Gain More Customers from Hyundai and Kia Than Market Share Suggests
Dataforce analyzed new customer sources for MG and BYD and found an above-average flow from Hyundai and Kia owners. For MG, 7.9% of new buyers came from Hyundai, and 4.3% from Kia. BYD had 6.5% and 5.1%, respectively.
This is notable because Hyundai and Kia have modest shares of the German market—Hyundai at 3.3% and Kia at 2.1% of new registrations in the first half of 2026.
Other European brands like Ford and Opel are also losing more customers than expected to these Chinese brands.
Market Impact and Brand Strategies
While Chinese automakers continue to take share, Hyundai and Kia both remain popular choices in Germany with growing sales numbers. They do, however, face increasing pressure to keep their customers as more affordable and well-equipped Chinese models gain attention.
Kia plans to strengthen its brand and product offerings to maintain loyalty beyond pricing moves, focusing instead on relevance and customer experience.
Source: autonews.com