Chinese car brands are rapidly gaining ground in the UK, with one in every 10 cars sold in June coming from China, according to the latest stats.
Brands like BYD, Jaecoo, and Omoda might not be household names just yet, but they’re growing fast, especially as other major countries like the US, Canada, and most of Europe slap big tariffs on Chinese imports. The UK, on the other hand, hasn’t followed suit.
Nearly 19,000 cars made by Chinese-owned companies such as MG and Polestar were sold last month, up from just 6% of sales a year ago. Over the first half of this year, around one in twelve cars sold in the UK were Chinese-made. Most of these were electric vehicles, though not exclusively.
For context, across the EU, Chinese brands made up only 4.3% of car sales during the same period. It’s even lower in countries like Germany at 1.6% and France at 2.7%. Spain’s closer to the UK at 9.2%.
So, why is the UK different?
An auto industry 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."
Chinese companies and their dealerships are also buying up showroom space and getting serious about expansion here. Former auto exec John Neill summed it up by saying Chinese brands are offering better, cheaper, more innovative cars across the board.
But it’s not all smooth sailing. Some in the UK car industry warn we may struggle to compete and might need to introduce quotas or trade rules to balance things out.
Meanwhile, other countries are taking a tougher stance. The EU has imposed tariffs as high as 45% on Chinese-made EVs, and Canada just announced a 100% tax. Talks are ongoing between the EU and China about replacing the tariffs with a minimum price system. Some Chinese carmakers are already planning to open factories in Europe, which could let them dodge tariffs and sell across the continent, including the UK.
Back at home, one in four new cars sold in the UK is now electric, though the shift has been helped by steep discounts from manufacturers—something the industry says isn’t sustainable long term. The SMMT, the car industry’s main trade body, says government incentives would help keep the momentum going.
