London — One in every ten cars sold in the UK last month was made in China, as electric vehicle demand and tariff-free access help Chinese automakers expand their market share.
According to figures from the Society of Motor Manufacturers and Traders (SMMT), over 18,900 Chinese-made vehicles were sold in June, a sharp rise from 6% of market share in June 2024 to 10% this year.
This surge includes popular brands like BYD, MG, Polestar, Jaecoo, and Omoda, with many models falling under the electric vehicle (EV) segment.
Across the first half of 2025, Chinese brands accounted for more than 8% of total UK sales, up from 5% over the previous two years. In contrast, Chinese automakers still hold much lower market shares across the EU, 1.6% in Germany, 2.7% in France, and 4.3% across the bloc, according to Jato Analytics.
“The UK has not imposed tariffs, which is a big opportunity for the Chinese, combined with the demand for electric cars,” said Felipe Munoz, analyst at Jato.
Industry Reactions and Competitive Pressure
While Chinese companies are expanding fast, even buying up UK-based dealerships, some UK industry leaders are raising concerns.
“Chinese manufacturers are producing cars which are better, cheaper, and more innovative,” said John Neill, former SMMT President. “If they are going to sell here, we need to get them to manufacture here too.”
There is currently no pressure on the UK government to replicate the tariff hikes introduced by the EU, U.S., and Canada, despite fears over the competitiveness of local manufacturing. The EU has imposed tariffs as high as 45% on Chinese EVs, while Canada introduced a 100% tax.
Meanwhile, China and the EU are negotiating a minimum price system to replace tariffs, and several Chinese firms are exploring factory setups in the EU, potentially offering tariff-free exports to the UK.
EV Growth and Discounts Drive Demand
According to the SMMT, one in four new car buyers in the UK now opts for an electric vehicle. However, this transition is being fueled by aggressive discounting rather than long-term sustainability.
“Government incentives can supercharge the market transition, as seen in other countries,” said Mike Hawes, SMMT’s Chief Executive.
As Chinese automakers continue to expand and the UK navigates post-Brexit industrial policy, the country's car market may see even greater shifts in the months ahead.
