In the just-ended 2025, new car sales in the UK surpassed 2 million units for the first time since the outbreak of the pandemic, partly due to car manufacturers offering more than 5 billion pounds (6.7 billion US dollars) in discounts for electric vehicles.
The Society of Motor Manufacturers and Traders (SMMT) said on Tuesday that it expects electric vehicle registrations to rise by 3.5% to 2.02 million in 2025. Among them, pure electric vehicle sales are projected to increase by about a quarter, accounting for 23% of the market share. Although this is an improvement over the 2024 forecast, it still falls short of the government’s target of 28% for electric vehicle sales and is 10 percentage points lower than this year’s target.
The growing popularity of Chinese cars has helped British car sales return to over 2 million units, with their lower prices attracting many consumers. Chinese automakers, including BYD and MG, a subsidiary of SAIC Motor, have seen their market share in the UK expand last year, accounting for 9.7% of total car sales in the country.
Chinese national brands are making a strong push into the UK market. Chery and Geely began selling in the UK last year. The UK is particularly attractive to them because it does not impose tariffs on Chinese-made electric vehicles as the EU does.
The growing influence of Chinese automakers is putting significant pressure on their counterparts in Japan, South Korea and some European countries. Additionally, these companies are also facing the challenge of mandatory electric vehicle orders, with non-compliant vehicles facing fines of up to £12,000 per vehicle – although they can avoid penalties through a points trading system and other flexible measures.
In addition, not only in the UK, despite the cost of EU tariffs, Chinese automakers still captured a record 12.8% share of the European electric vehicle market in November, continuing the growth momentum they have maintained throughout the year.
According to data from market research firm Dataforce, Chinese brands have regained their growth momentum in the rapidly expanding hybrid vehicle sector, with their market share in the European Union, European Free Trade Association countries and the United Kingdom exceeding 13%.
This year, leading automakers such as BYD and SAIC Motor, as well as emerging enterprises like Chery Automobile and Zhejiang Liyue Auto Technology Co., Ltd., have intensified their efforts to enter the European market. The overcapacity in China has driven an export boom as manufacturers seek to escape the relentless price wars in the domestic market.
Chinese mainland automakers have largely absorbed the additional costs imposed by the EU on Chinese-made electric vehicles by the end of 2024, and are actively exploring areas not affected by the new tariffs, such as hybrid models and non-EU markets like the UK.
According to another set of data provided by Jato Dynamics, as of October, Leapmotor’s sales of electric vehicles in Europe soared by over 4,000%, a growth attributed to its joint venture with Stellantis NV, the parent company of Peugeot, Fiat, and Opel. During the same period, the sales of electric vehicles under Chery’s Omoda brand also increased by 1,100%.
