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China takes big chunk of UK's new car market
Tuesday, Jan 13, 2026 12:00 AM
Omoda Jaecoo showroom MG took second place in December, behind only VW – so why aren't European rivals pushing back?

In December, almost one in five new cars registered in the UK came from Chinese brands. For professional or armchair industry watchers, that is a staggering statistic. Never have we seen disruption on this scale.

The Japanese, the Koreans and even Tesla took years to gain a significant toehold here, and the Chinese have blown right past them in terms of share in an eye-opening 12 months.

The total Chinese share for 2025 was 9.7%, but last month’s 18.2% share was the culmination of phenomenal growth in the second half. Granted, it took MG a decade to find the right formula under owner SAIC, but boy have they cracked it, grabbing the number-two spot for December behind only Volkswagen.

Chery’s brands took barely a year to climb to seventh in December, while BYD in sixth was similarly speedy in elbowing past rivals of decades standing.

Just as notable is the lack of pushback from those rivals. The car industry is a vocal bunch when shifts threaten profitability, but there have been surprisingly few protestations at China annexing a fifth of Europe’s second-largest car market.

Compare that with the uproar over Japan’s threat to the status quo in the ’70s.

The UK hasn’t followed the EU in imposing extra tariffs on Chinese-built EVs, and as a result their sales have prospered, up 50% last year, for 29% of the UK EV market.

The EU’s case for tariffs was meticulously laid out, and the UK could make a similar case if it wanted to – but there’s just no appetite.

For one thing, the risk to British car exports to China is too great. “When there are investigations, China threatens to put on reciprocal action very quickly,” SMMT boss Mike Hawes said recently.

To investigate possible dumping or unfair state subsidies, the government would need a “very public declaration” from a major car maker, believes Hawes, and “every brand would be wary of doing that”.

For dealers and buyers, good-value offerings from Chinese brands were a godsend in a stagnant market full of expensive cars. Without them, there would have been no growth in the UK market last year.

But the fast erosion of established brands, especially those with a manufacturing interest here, could end up being a net detriment – especially given that questions still hang over the longevity of Chinese cars and even some of the brands themselves.