UK new car registrations top 2 million as Chinese brands gain ground

[PCauto] According to data from the UK's Society of Motor Manufacturers and Traders (SMMT), new car registrations in the UK rose by 3.5% year-on-year in 2025 to 2.02 million units. This marks the first time since the COVID-19 pandemic that annual sales have exceeded 2 million.

Among them, BEV (battery electric vehicle) sales grew by approximately 25% year-on-year, with their market share increasing to 23%. While this is higher than in 2024, it still falls short of the government's 28% target.

Chinese brands become an important force driving sales

Currently, for every 10 new cars sold in the UK, about 1 comes from a Chinese brand, giving them a total market share of 9.7%.
BYD and MG continue to strengthen their presence in the local market, while Chery and Geely formally entered the UK market last year. Chinese automakers offer not only pure electric models but also HEVs, catering to diverse consumer needs.

European electric vehicle market analyst Matthias Schmidt pointed out that Chinese automakers are pursuing a regionalized expansion strategy in Europe, with significant variation in the acceptance of Chinese brands across countries and regions.
The UK and Norwegian markets are particularly welcoming to Chinese brands, as no additional tariffs are imposed on Chinese pure electric vehicle models.The UK market is unique in its lack of a truly domestic mass-market brand: Rover exited the market long ago, Vauxhall belongs to the Stellantis Group, and MG is produced by China's SAIC. This has created a natural opening for other Chinese brands to enter.

In contrast, Japanese automakers' competitiveness in the UK market continues to wane. Although Nissan and Toyota maintain local manufacturing plants, their overall market share has declined. Although Nissan and Toyota have local factories, their overall market share has decreased. Sales of Honda and Suzuki have fallen, and Mitsubishi has completely withdrawn from the UK market. This has created an opportunity for Chinese brands to capture market share.Schmidt predicts that Chinese brands' share of the European new car market will reach nearly 10% between 2028 and 2030, potentially rising to 13% in the pure electric vehicle segment.

One factor driving the sales growth of Chinese brands is price

In 2025, total discounts on pure electric models in the UK market exceeded £5 billion, with an average discount of around £11,000 per vehicle. This affords Chinese brands a significant advantage among price-sensitive consumers.

Beyond pricing, the flexible model lineups of Chinese automakers also play a key role. Data shows that around 60% of Chinese-brand models entering Western Europe are hybrids (HEVs), rather than relying solely on BEVs. This has partly mitigated the impact of EU tariffs on pure electric vehicles and made these products more appealing to consumers with different preferences.

The overall environment of the UK automotive industry remains challenging

Although the UK automotive market is recovering, it faces multiple headwinds: U.S. tariff policies have disrupted costs; a Jaguar Land Rover factory was idled for nearly six weeks due to a cyberattack, prompting a £1.5 billion government loan guarantee to stabilize the supply chain; and the closure of Stellantis's Luton plant led to a 10% drop in light commercial vehicle production. Against this backdrop, the market expansion of Chinese brands not only demonstrates their competitiveness but also underscores their ability to adapt flexibly to a complex market environment.