The United Kingdom increasingly dependent on Chinese electric cars: how BYD is reshaping the UK market

A Silent Revolution in the UK Automotive Market

The UK automotive market is undergoing a radical transformation. Data from the Society of Motor Manufacturers and Traders (SMMT) reveal a surprising figure: one in four vehicles purchased in the United Kingdom is from China. More precisely, Chinese vehicles captured 27.9% of the electric vehicle market in 2025, out of over 470,000 units sold. When considering all types of cars, imports from China reached a new record, accounting for 13.5% of the overall market—equivalent to one in eight cars. These numbers attest to the increasingly dominant role of Chinese manufacturers in the UK’s industry transition toward sustainable mobility.

The expansion has been particularly aggressive in the fully electric vehicle segment. Brands like BYD, Jaecoo, and Omoda have recorded increases of over 50%, with BYD multiplying its sales fivefold last year. The Chinese company also surpassed Tesla, establishing itself as the leading global electric vehicle manufacturer in 2025. Alongside these new entrants, historic brands like MG—although of British origin—are now classified as Chinese products due to their foreign ownership.

The Puzzle of Asian Penetration: More Than Just Commercial Growth

The market share of Chinese electric vehicles continues to rise sharply. In 2025, fully electric vehicles accounted for 23.4% of all new registrations in the UK, with a jump to 32.3% in December alone. This progress reflects the Labour government’s commitment to gradually eliminate new petrol and diesel cars by 2030, followed by hybrid vehicles by 2035.

However, this growth has raised questions about the sustainability of the UK’s dependence on Asian suppliers. The European Union and the United States have already taken significant countermeasures. According to the Center for Strategic and International Studies, the Chinese government invested at least 230 billion dollars (about 170 billion pounds) in the electric vehicle sector between 2009 and 2023—a massive public support that has raised international concerns over unfair subsidies and geopolitical risks. In response, Washington imposed a 100% tariff on Chinese electric vehicles, effectively excluding them from the American market, while Brussels introduced heavy import tariffs. The UK government, however, has stated that it does not intend to impose similar tariffs.

The Impact of Environmental Policies on Industry Balances

The UK automotive industry is under increasing fiscal pressure. Car manufacturers have had to heavily subsidize electric vehicle sales to meet regulatory targets. Last year, producers spent 5.5 billion pounds to subsidize electric vehicle prices, averaging £11,000 per unit sold. The SMMT has described this level of investment as unsustainable in the long term.

Despite these efforts, the sector has not met the set targets. In 2025, the share of electric vehicles sold was 23.4%, below the 28% target set by regulation. In 2024, the situation was even more critical: 19.6% achieved against a 22% goal. Drivers who do not meet quotas can buy credits from companies that exceed them or further reduce their fleet’s CO2 emissions. Those who deviate significantly risk a fine of £12,000 for each non-compliant vehicle.

An Overly Ambitious Mandate? Industry Calls for Revision

Mike Hawes, CEO of the SMMT, has criticized the mandate, stating that the requirements push the sector beyond actual consumer demand. He suggested that the planned revision of the mandate, originally scheduled for 2027, should be brought forward to 2025 to reassess the underlying assumptions.

Meanwhile, overall market data shows a slight recovery. Total new car sales in the UK increased by 3.5%, reaching 2.02 million units—the highest level since 2019, though still below pre-pandemic levels. Plug-in hybrid cars, which combine battery and petrol engine, experienced the fastest growth with a 35% increase. Fully electric vehicles increased sales by 24%, while traditional petrol and diesel cars declined by 8% and 15%, respectively.

The contrast with EU decisions is notable: Brussels postponed the ban on combustion engines from 2035 to 2040, citing implementation difficulties. The UK Labour government, however, resisted similar concessions, maintaining more restrictive targets. 2025 will require that one-third of all cars sold be zero-emission—an ambitious goal that will continue to pressure the UK industry and, paradoxically, further benefit Chinese manufacturers.