Chinese-made brands are on track to account for a fifth of new vehicles on Britain’s roads as soon as next year, according to industry experts, highlighting the challenges facing western car manufacturers.
The number of Chinese companies selling into the UK is set to double from 13 to almost 30, with lesser-known names joining the likes of the fast-growing entrants BYD and Jaecoo.
BYD’s market share hit 2.39 per cent in February, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). This left the brand just behind Tesla on 2.69 per cent, with the popularity of Elon Musk’s brand having waned over the past 12 months.
BYD and Tesla are closely followed by Jaecoo, which has gained a foothold in the UK with a market share of 2.25 per cent, up almost threefold in the past year. The Jaecoo 7 SUV, which starts at about £30,000, was launched in early 2025 and has become the best-selling Chinese car in the UK.
Ian Plummer, the commercial director of Autotrader, said Chinese brands were gaining ground as consumers acted on “word-of-mouth” recommendations. “We are currently seeing around a quarter of new-car leads on our platform going to new entrants from China,” he said.
“Given how fast brands such as BYD and Chery Group are growing — both were under 1 per cent at the start of the year — as well as notable launches towards the end of 2025 from brands such as Changan, Aion and Geely, we expect that the Chinese brands will reach 15 per cent market share this year and could touch 20 per cent in 2027.”
The 13 Chinese brands in the UK market include Changan, Chery, Geely, Leapmotor, Omoda, Skywell and Xpeng, most of which have experienced strong growth. Another 14 brands are understood to be exploring entry to the UK market in the next 12 months, with all price points covered and brands offering electric vehicle, hybrid and petrol options.
The perception of Chinese cars as a cheaper alternative to European and US brands is shifting as companies “load” cars with innovative technology, Plummer said.
The number of car brands in the UK has grown from 45 in 2020 to 75 this year, with expectations that it will reach 90 brands in two years’ time.
The SMMT figures released last week showed new car registrations were the highest in more than 20 years, but the market share for new EVs shrank for a second consecutive month. The number of new electric cars coming onto the market was 21,840, a rise of 2.8 per cent on the same month in 2025.
The share of fully electric plug-in battery registrations was 24.2 per cent, down from 25.3 per cent a year ago, well short of the 33 per cent required under the government’s ZEV mandate for 2026.
Industry wants the government to change the zero emissions mandate which is due to ramp up to 100 per cent for new cars and vans by 2035. Companies face fines of £15,000 per vehicle below the target.
From 2028, the UK government will also introduce a pay-per-mile road tax of 3p per mile for EVs and 1.5p for hybrids, another potential disincentive for the uptake of EVs.
Mike Hawes, chief executive of the SMMT, said the EV market share “remains disappointing” even if overall volumes were growing in line with the rest of the UK’s new car market.
“Given sales of new pure petrol and diesel cars are currently required to end in less than four years, EV uptake must accelerate rapidly,” Hawes said.
