Record growth of Chinese cars in UK

One in 10 cars sold in the UK in June were made in China, according to the latest industry figures.

New Chinese brands such as BYD, Jaecoo and Omoda are growing rapidly in the UK.

There has been a particular surge over the past few months, at a time when most other G7 countries have levied significant extra tariffs against their imports.

Around 18,944 cars made by Chinese-owned brands, including MG and Polestar, were sold in June, which is 10% of overall UK sales, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). That is up from 6% in the same month a year ago.

Across the first half of this year, more than 8% – or 1 in 12 – cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric vehicles.

By comparison a study by Jato Analytics for the first five months of the year put Chinese brands at 4.3% of the market across the EU, and just 1.6% in Germany and 2.7% in France. Spain was higher though at 9.2%.

Its analyst Felipe Munoz said: “The fact that the UK has not imposed tariffs is a big opportunity for the Chinese, along with the popularity of electric cars.

“MG is also playing like a local brand, and unlike France and Germany, the UK doesn’t have a big local industry to protect.”

However, some industry grandees have warned that the UK industry will struggle to compete, and Britain might have to introduce quotas.

Chinese firms and their franchises have been buying up car showrooms.

“Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market,” said John Neill, former SMMT President and ex-chief executive of Unipart.

“If they are going to sell here we are going to have to get the Chinese to manufacture here.”

The government has so far faced little pressure from existing suppliers on copying the tariffs imposed by the EU, US, and Canada on electric cars.

The majority of EU member states backed big taxes being imposed on imports of EVs from China, which can be as high as around 45%, and Canada announced its imposition of a 100% tax on Chinese made EVs.

The EU and China are in negotiations to replace the tariff with a minimum price system.

Some Chinese manufacturers are also in the process of opening factories in the EU which could export across Europe including the UK tariff-free.

The SMMT said that one in four buyers of new cars in the UK are now purchasing electric cars – although the transition to electric has been driven by “unsustainable” discounting by manufacturers, says Mike Hawes, the SMMT’s chief executive.

“As we have seen in other countries, government incentives can supercharge the market transition,” he said.