Chinese automotive brands are on track to make up a significant share of the United Kingdom’s new-car market in 2025, with industry analysts suggesting that one in every ten new vehicles sold this year will be from a Chinese marque. Latest estimates indicate that combined sales of Chinese-owned marques such as MG, BYD and Chery could surpass 200,000 units, roughly doubling their total from 2024 and accounting for about 10 per cent of the UK’s new vehicle market by year-end.
This surge reflects a broader global shift in the automotive sector, driven largely by the rapid expansion of electric and hybrid vehicles and China’s growing strength in these technologies. Chinese manufacturers have benefited from years of heavy government support, control of key battery supply chains and lower production costs, giving them a competitive edge in pricing and technology as demand for electrified transport increases worldwide.
Unlike the European Union, which has imposed tariffs of between 17 per cent and 38 per cent on Chinese electric vehicles to protect domestic producers, the UK has not enacted similar levies on imports. This absence of tariffs has created an attractive environment for Chinese carmakers, allowing their vehicles—especially hybrids, which are not subject to EU anti-subsidy tariffs—to gain traction with British buyers.
Data from industry body the Society of Motor Manufacturers and Traders (SMMT) shows that Chinese brands have already secured a growing presence in the market, with nearly 188,000 new registrations between January and November of this year out of around 1.87 million new vehicles sold over that period.
Several factors help explain this rapid rise. The UK’s domestic car manufacturing base has dwindled over recent decades, leaving comparatively few mass-market homegrown brands and making British motorists more receptive to imported models. Traditional Japanese players such as Nissan and Toyota have seen their UK market share shrink, while Honda and Suzuki have also experienced declines. Mitsubishi, notably, has exited the UK market entirely.
Chinese models are not only increasing their foothold in Britain but also across other markets such as Spain and Norway, where they are similarly set to represent roughly one in ten new car sales. Across western Europe, analysts estimate the average share for Chinese marques this year at around 6 per cent.
The impact of this trend is already being felt among incumbent manufacturers. Japanese companies have been particularly hard hit, and even established European and American brands are feeling competitive pressure. The emergence of cost-competitive Chinese vehicles with attractive electric and hybrid powertrains is prompting established producers to revisit pricing and product strategies to maintain market share.
As the automotive industry continues its rapid transition toward electrification and hybrids, China’s role as a major supplier on the global stage looks increasingly assured. Projections suggest that Chinese brands could reach close to 10 per cent of the broader European market by 2028–30, especially if tariff regimes remain relaxed in key markets such as the UK.
This shift not only underscores the evolving dynamics of global automotive competition but also highlights the strategic importance of the UK market as a gateway for Chinese manufacturers seeking to expand their footprint across Europe.
