The rapid ascent of Chinese car brands in Europe could be nearing a turning point as both the EU and Germany consider protectionist measures.

One in every 10 new cars registered in the European Union in May was from a Chinese brand, but European analysts say the rapid rise could be approaching a turning point as Brussels moves to extend tariffs and Germany hardens its trade stance.

Chinese brands overtook their Japanese rivals in terms of European market share for the first time in May. However, the momentum could slow as Brussels has stepped up its trade-defence measures, including the announcement of fresh duties on Chinese automotive products on Tuesday amid planned anti-subsidy tariffs on plug-in hybrid electric vehicles (PHEVs).

Meanwhile, Germany, long a brake on tougher EU trade measures against China, is signalling greater support for trade-defence instruments, a shift which analysts said could reshape the bloc’s trade approach to China.

“We’re at the turning point,” said Beatrix Keim, director of Centre Automotive Research in Germany, lowering her forecast for Chinese brands’ European market share to 15 per cent by 2035, from a previous projection of 20 per cent.

On Tuesday, Brussels imposed definitive anti-dumping duties on Chinese passenger-car and light-truck tyres, arguing that a surge of low-priced imports had caused material injury to European producers.

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