(Reuters) -Chinese automakers sold more cars in Europe than the Renault and Audi brands in August, helped by booming plug-in hybrid sales, with models from BYD, Jaecoo and MG in the category's top-ten sellers, data from JATO Dynamics showed on Tuesday.

Tesla's Model Y remained Europe's most popular battery-electric vehicle (BEV), but its sales dropped 37% from the same month last year despite growing BEV sales overall, data from the research firm showed.

WHY IT'S IMPORTANT

Chinese automakers have ramped up exports of plug-in hybrid (PHEV) and hybrid electric vehicles (HEVs) to Europe and plan to build more models locally, minimising the impact of the European Union's tariffs on Chinese-made EVs.

PHEVs, which run on a combination of gasoline and electricity, are gaining in popularity as an affordable compromise between all-combustion and all-electric cars.

BY THE NUMBERS

Chinese carmakers had a combined market share of 5.5% in August with over 43,500 sales, up 121% from August 2024, the data showed. That was higher than Audi's 41,300 and Renault's 37,800.

PHEV sales in 28 European countries were up 59% in August to almost 84,000, with PHEVs of Chinese brands up 14-fold to 11,000.

BYD's Seal U, Chery's Jaecoo J7 and SAIC's MG HS were among Europe's 10 best-selling PHEVs.

BEV sales in Europe rose 27%, outperforming total market growth of 5%, the data showed.

KEY QUOTES

"There was strong demand for BEVs in August, however a 27% increase is less significant than it looks when you consider how widely they are being promoted," JATO Dynamics analyst Felipe Munoz said.

CONTEXT

BYD announced late last year it would start selling PHEVs in Europe. Earlier this month, it said it would make all its EVs for sale in Europe locally by 2028.