One in 10 cars sold in UK made in China

In June, one out of every ten cars sold in the UK was made in China, according to new data from the Society of Motor Manufacturers and Traders. This is a significant increase from last year, when only six percent of cars sold in the same month were Chinese-made. Chinese car brands like BYD, Jaecoo, and Omoda are quickly gaining popularity in the UK, especially as electric vehicles become more common. In June alone, nearly nineteen thousand cars from Chinese-owned brands, including MG and Polestar, were sold in the UK. Over the first half of this year, more than eight percent of all cars sold in the UK were Chinese, up from five percent in 2023. This growth is happening at a time when other major countries, like those in the G7, are putting high tariffs on Chinese car imports to protect their own industries. Most of the Chinese cars sold in the UK are electric, but there are also some traditional petrol and diesel models. In comparison, Chinese cars make up a much smaller share of the market in other European countries. For example, in the first five months of this year, Chinese brands accounted for just over four percent of car sales in the European Union, less than two percent in Germany, and under three percent in France. Spain is an exception, with Chinese cars making up over nine percent of sales. Felipe Munoz, an analyst at Jato Analytics, explained that the UK is an attractive market for Chinese carmakers because the government has not imposed extra tariffs on their vehicles. The popularity of electric cars in the UK also helps Chinese brands. MG, which is owned by a Chinese company, is acting like a local brand, making it even more successful. Unlike France and Germany, the UK does not have a large domestic car industry to protect, which makes it easier for foreign brands to compete. However, some leaders in the UK car industry are concerned about the rapid growth of Chinese brands. They worry that British carmakers will struggle to compete and that the government may eventually need to introduce limits on the number of Chinese cars allowed in the country. Chinese companies and their partners have also been buying up car showrooms across the UK. John Neill, a former president of the Society of Motor Manufacturers and Traders, said that Chinese manufacturers are producing cars that are better, cheaper, and more innovative than many others. He suggested that if Chinese companies want to keep selling cars in the UK, they should consider building factories there as well. So far, the UK government has not faced much pressure to copy the high tariffs that the European Union, United States, and Canada have placed on Chinese electric cars. The EU has imposed taxes as high as forty-five percent on Chinese electric vehicles, while Canada has announced a one hundred percent tax. The EU and China are currently negotiating to replace these tariffs with a minimum price system. Some Chinese carmakers are also planning to open factories in the EU, which would allow them to sell cars across Europe, including the UK, without paying extra taxes. The Society of Motor Manufacturers and Traders reported that one in four new cars sold in the UK is now electric. However, the shift to electric vehicles has been driven by heavy discounting from manufacturers, which may not be sustainable in the long run. Mike Hawes, the chief executive of the Society, said that government incentives could help speed up the transition to electric cars, as has been seen in other countries. The UK car market is changing rapidly, with more Chinese brands and electric vehicles appearing on the roads every month. This trend is likely to continue as long as the UK remains open to Chinese imports and as more people choose electric cars for their next vehicle.