Chinese Cars Forecast to Capture 10% of UK Market by 2025

Published: 31 December 2025. The English Chronicle Desk. The English Chronicle Online.

Chinese cars are forecast to make up one in every ten new vehicles sold in the UK during 2025, highlighting a rapid rise in market presence. Analysts say the surge in Chinese car sales, including brands like MG, BYD, and Chery, is reshaping the UK automotive landscape. According to Matthias Schmidt, an expert in European electric vehicles, Chinese manufacturers are poised to surpass 200,000 sales in Britain this year, meaning Chinese cars could capture 10% of total market share.

Across western Europe, Chinese vehicles are gaining traction, with Spain and Norway also recording approximately a tenth of new car purchases from Chinese brands. This trend reflects China’s dominance in electric vehicle (EV) production, backed by extensive government subsidies, lower manufacturing costs, and control over critical lithium-ion battery supply chains. Analysts warn that European countries risk losing automotive jobs if domestic brands fail to compete effectively with Chinese imports.

Norway has seen the highest EV adoption, largely due to strong purchase incentives, whereas the UK market growth includes both hybrids and fully electric Chinese models. Tu Le, founder of Sino Auto Insights, noted that Chinese manufacturers are approaching Europe strategically, identifying regions receptive to their vehicles while navigating local resistance. The UK’s tariff-free approach to Chinese imports has created a prime opportunity for these brands, allowing them to expand market share rapidly.

The Society of Motor Manufacturers and Traders reported 187,800 Chinese-brand cars sold in the UK during the first eleven months of 2025, doubling the previous year’s total. Schmidt emphasized that the UK lacks domestic mass-market champions, leaving space for Chinese brands to dominate. With Rover defunct and Vauxhall integrated into Stellantis, Chinese cars fill the gap for UK consumers unable to engage in patriotic purchasing choices.

Japanese manufacturers, including Nissan and Toyota, have experienced declines in UK market share despite local production. Honda and Suzuki also saw reduced sales, while Mitsubishi exited the UK market entirely. Meanwhile, EU tariffs on electric vehicles, ranging from 17% to 38%, have limited pure electric car competition but left hybrids largely untaxed, enabling Chinese brands to undercut European competitors.

Analysis shows less than 40% of Chinese-brand vehicles entering western Europe during late 2025 were fully battery electric. EU regulatory adjustments now permit 10% of car sales to include internal combustion engines after 2035, softening the previously strict electric vehicle ban. European manufacturers argued that continued petrol and diesel sales are essential to fund the transition to battery vehicle production.

Industry experts warn that delaying Europe’s EV transition could allow Chinese manufacturers to extend their competitive lead. Schmidt projects Chinese car market share across Europe could approach 10% between 2028 and 2030, with their battery vehicle market presence peaking at 13%. This rapid growth highlights the increasing influence of Chinese automotive technology, design, and pricing strategies across the continent.

The rising popularity of Chinese vehicles in the UK reflects both cost efficiency and innovative approaches to hybrid and electric models. Analysts predict continued growth in the coming years, driven by competitive pricing, government support, and consumer openness to alternative brands. With no significant domestic alternatives, Chinese cars are filling a void in the UK market, signaling long-term changes in automotive buying behaviour and industry dynamics. The trend underscores China’s growing clout in the global automotive sector and suggests that European manufacturers must adapt quickly to remain competitive.

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