Chinese Automakers Drive UK Car Sales to New Heights
The UK car market has witnessed a significant resurgence, with sales surpassing 2 million units for the first time since 2019, largely due to the growing presence of Chinese car manufacturers. This shift marks a notable development in the automotive landscape, as Chinese brands continue to gain traction.
In 2025, Chinese automakers accounted for 9.7% of all new car registrations in the UK, equating to 196,000 vehicles, according to preliminary data from the Society of Motor Manufacturers and Traders (SMMT). This is a substantial increase from the 4.9% market share they held in 2024.
Electric vehicles (EVs) have also contributed to this upward trend, with sales increasing by nearly 25% year-on-year to 473,000 units. This growth in EVs now comprises 23.4% of the total market, up by four percentage points compared to the previous year, aiding in a 10% reduction in the average emissions of new cars sold in the UK.
Mike Hawes, CEO of SMMT, described the 2025 sales figures as a “reasonably solid result amid tough economic and geopolitical headwinds.”
The automotive industry has faced declining British demand for new vehicles since the coronavirus pandemic began in early 2020. This decline comes at a challenging time, as manufacturers transition from traditional petrol and diesel models to battery electric vehicles to meet the zero-emission vehicle (ZEV) mandate.
Leading the charge are Chinese brands such as MG, BYD, and Chery—along with its sub-brands Jaecoo and Omoda—which have aggressively entered the UK market. Unlike the US and the EU, the UK has not imposed tariffs on Chinese imports, facilitating this expansion.
Tesla, with its Shanghai production facility, also contributes to the UK’s reliance on Chinese imports. BYD’s sales surged to 51,000, a sixfold increase, while Chery’s brands grew 13 times to 54,000 units. MG achieved sales of 85,000, nearing figures of established brands like Germany’s Mercedes-Benz and South Korea’s Hyundai.
Backed by the Chinese communist party, the country’s automakers have focused on electric car production, aiming to capture a significant share of the global market. Their success extends to Europe, where plug-in hybrid electric vehicles (PHEVs) have gained popularity.
The rise of Chinese automakers has affected Japanese brands such as Toyota, Nissan, Suzuki, and Honda, as well as some European manufacturers like Stellantis’s Citroën and Fiat, and Volkswagen’s Seat.
European carmakers face challenges in meeting the ZEV mandate, which targets 28% battery electric car sales by 2025. Despite the increase in electric sales in the UK being “incredibly positive and good news,” Hawes notes it remains below the target. The SMMT reports discounts worth £11,000 per electric car, totaling £5.5 billion, compared to £6,000 for non-electric vehicles.
Hawes urges the government to accelerate the review of the mandate to this year, instead of waiting until 2027. The UK government, having already relaxed targets in April, faces further pressure to ease rules after the EU proposed to dilute its own petrol and diesel ban post-2035.
According to the Energy and Climate Intelligence Unit, the industry likely avoided fines under the mandate for the second consecutive year by utilizing “flexibilities.” Manufacturers only needed to achieve 20.4% electric sales to avoid penalties, with additional loopholes allowing for increased PHEV sales, favored by some due to higher profitability.
The SMMT noted uncertainty over whether Rachel Reeves’s announcement of a “pay-per-mile” charge for electric cars, starting in 2028, has deterred buyers. Government forecasts suggest this measure could hinder sales, a concern expressed by Hawes who criticized the “conflicting message to consumers” given the subsidies for electric car sales.
Original Story at www.theguardian.com