Chinese automakers outsold Japanese brands in Europe over a full quarter for the first time, according to a Bloomberg report citing market researcher DataForce. Chinese-branded cars accounted for 12.7% of sales in the region; registrations in September were double the level a year earlier. Japanese brands held an 11.9% share, while European manufacturers remained the leading group.

The shift follows a rapid rise from a small base: Chinese brands had barely 1% of European sales five years ago. BYD and Chery are among the companies that have since established a stronger presence. Around 20 Chinese brands attended this year’s Paris Motor Show, where they displayed vehicles and outlined plans to expand in Europe. With fuel prices rising in recent months, many are emphasizing electrified models, particularly hybrids.

EU tariffs on electric vehicles made in China do not cover hybrids, including plug-in hybrids. The bloc is also considering rules that would favor locally produced cars when allocating subsidies and other incentives, including tax benefits for company cars. Given the importance of corporate and fleet buyers in Europe, Chinese automakers are setting up operations in the region as they respond to the potential policy changes.