Chinese automakers such as BYD Company Limited and Chery are gaining traction among UK consumers, benefiting from lower tariffs and high receptiveness to emerging brands.
Recently, Doug Keith drove an electric vehicle out of his dealership in Leeds, northern England, and immediately pressed the accelerator. The car was a BYD Seal Excellence, capable of accelerating from 0 to 60 mph in just 3.8 seconds—a key selling point. Another advantage was its price: around £48,000 ($64,400), 20% cheaper than the top-tier Tesla Model 3.
Keith, with over four decades of car sales experience, recalled that when he opened BYD’s first UK showroom in 2023, consumers were skeptical about Chinese-made vehicles. Today, he operates six BYD-exclusive dealerships.
"Some people assume, ‘If it’s made in China, it must be cheap,’" Keith said. His response? "Where do you think your iPhone is assembled?"
Multiple factors are driving Chinese automakers’ rapid rise in the UK. Unlike the EU and the US, which impose high tariffs on Chinese EVs to protect domestic industries, the UK levies only a 10% import duty. Additionally, British consumers show low brand loyalty, and the country lacks a major domestic mass-market automaker.
According to the Society of Motor Manufacturers and Traders, Chinese brands—including BYD, Chery, and Geely—accounted for 13% of new car registrations last month, nearly doubling their market share year-on-year.
"This growth rate is unprecedented in the UK auto market," said Ian Plummer, Chief Commercial Officer at Auto Trader. He noted that BYD and Chery—which owns Jetour and Omoda—are expanding five to six times faster than early foreign entrants like Tesla in the 2010s or Kia in the 1990s.
The UK’s domestic auto manufacturing has been in decline for years, with annual production now at around 600,000 units—half of late-2010s levels. Major local producers include Japan’s Nissan, Jaguar Land Rover (owned by India’s Tata Motors), and Mini (under BMW Group).
China, now the world’s top auto exporter, ships vehicles to markets like Mexico, Brazil, Malaysia, and South Africa. Its EV production outpaces global competitors, and Chinese automakers excel at adapting to regulatory shifts and consumer preferences—particularly with popular plug-in hybrids.
With domestic overcapacity and intense competition squeezing profits, China has prioritized auto exports. However, this surge has triggered backlash in Western markets with large domestic industries. The US imposes a 100% tariff on Chinese EVs, effectively banning them, while the EU has slapped duties of up to 45%.
The UK, however, maintains no such barriers and seeks stronger trade ties with China. Its annual new car sales total about 2 million, with over 70 brands now competing—unlike Germany’s Volkswagen-dominated or France’s Renault-Peugeot markets.
Chinese automakers gained a foothold in the UK through SAIC Motor’s acquisition of MG Rover in the mid-2000s. SAIC shifted MG production to China and closed its UK plant in 2016. Today, MG leads Chinese brands with over 4% market share, while BYD holds just above 2%—matching Tesla.
BYD dealers highlight features like rotating touchscreens, voice control, and even in-car karaoke. "Customers are realizing BYD isn’t a budget brand," said Fauzia Siddique, a sales executive at BYD Leeds.
One recent buyer, Steve Wain, chose a £33,000 BYD plug-in hybrid SUV for its spacious interior and long battery range—key for his 300-mile trips from Leeds to Cornwall. Another, Roger Lyons, 60, traded his Audis for a BYD Seal Excellence after test-driving Porsche and Hyundai models. "It drives almost like a Porsche but with more tech," he said.
Encouraged by BYD’s success, Keith recently opened two new dealerships for Changan Automobile. His 28-outlet group expects 50% sales growth to £500 million next year, fueled by Chinese brands.
In September, his BYD Leeds outlet outsold all other local franchises. "For a brand that was unknown two years ago, this is remarkable," Keith said.