British-built cars are losing ground fast, and the head of the UK’s car industry body says Chinese competition is a major reason why.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said UK vehicle manufacturers are under “extraordinary pressure” as Chinese brands offer good-quality cars at prices established manufacturers simply can’t match. His comments came as SMMT figures showed UK vehicle output fell 7.5% in the first half of 2026, to 385,979 units, with production for the domestic market down a sharper 13.2%.
Chinese-owned brands — led by SAIC’s MG, BYD, and Chery’s Omoda and Jaecoo ranges — now account for roughly 15% of new UK car registrations, up from around one in ten just a year earlier. That growth has been rapid by any measure: Chery’s Jaecoo 7 became the UK’s outright best-selling car in March, outselling long-established rivals like the Nissan Qashqai and Ford Puma.
Hawes said the response from established manufacturers has been heavy discounting to try to hold on to market share. It’s a pattern that’s been playing out across Europe too — Volkswagen recently said it would deepen its own cost-cutting to compete with Chinese rivals, even though the EU imposed tariffs on Chinese-built electric vehicles back in 2024. The UK, notably, has taken a different approach and has not followed suit with similar tariffs.
For drivers and operators thinking about their next vehicle, this shift matters beyond the headlines. Heavier discounting from mainstream manufacturers can mean better deals on forecourts in the short term, while the growing range and warranty terms on offer from Chinese brands — several now offer seven-year cover as standard — are giving operators genuine new options when it comes time to replace a vehicle.
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