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

[PCauto] According to data from the Society of Motor Manufacturers and Traders in the UK, new car registrations in the UK in 2025 increased by 3.5% year-on-year, reaching 2.02 million units. This marks the first time since COVID-19 pandemic that annual sales have exceeded 2 million units.
Among them, BEV sales rose by approximately 25% year-on-year, with their market share increasing to 23%. Although 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 influence in the local market, while Chery and Geely officially 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 adopt a regional expansion strategy in Europe, with significant differences 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.
What makes the UK market unique is the absence of a truly local mass-market brand: Rover has long exited the market, Vauxhall belongs to the Stellantis Group, and MG is produced by SAIC in China, leaving a natural space for Chinese brands to enter.

In contrast, the competitiveness of Japanese car companies in the UK market continues to decline. 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 Sales of Honda and Suzuki have fallen, and Mitsubishi has completely withdrawn from the UK market.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 the market share of Chinese brands in the European new car market will reach nearly 10% between 2028 and 2030, and may even rise to 13% in the pure electric vehicle segment.

One factor driving the sales growth of Chinese brands is price

In 2025, total discounts for pure electric models in the UK market exceeded 5 billion pounds (RM273.45 billion), with an average discount of about 11,000 pounds (RM60,164) per vehicle. This gives Chinese brands a significant advantage among price-sensitive consumers.
In addition to price advantages, the flexible model lineup of Chinese automakers also plays a key role. Data shows that around 60% of the Chinese brand models entering Western Europe are 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, U.S. tariff policies have disrupted costs, the Jaguar Land Rover factory was shut down for nearly six weeks due to a cyberattack, and the UK government provided a loan guarantee of 1.5 billion pounds (RM82.05 billion) to stabilize the supply chain. The closure of the Stellantis Luton factory also led to a 10% drop in light commercial vehicle production.In this context, the market expansion of Chinese brands not only demonstrates their competitiveness but also highlights their ability to adapt flexibly to complex market environments.