Chinese carmakers have pulled ahead of their Japanese rivals in the UK new car market — a shift that would have sounded fanciful even three years ago, but is now backed up by hard registration data from across the trade.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that Chinese brands accounted for 9.7% of all new cars sold in the UK during 2025 — almost 200,000 vehicles. Across the same year, Japanese brands lost nearly a full percentage point of UK market share. Globally, the picture is even more dramatic: Chinese manufacturers recorded around 27 million vehicle sales in 2025, surpassing Japan’s roughly 25 million units for the first time since Japan took the top spot in 2000, according to research by Nikkei and automotive data firm MarkLines.
The shift in the UK has been driven by a handful of names rather than the whole field.
MG remains the biggest seller, with around 70,000 to 85,000 UK registrations in 2025 depending on the data source. The brand is owned by Chinese state-backed SAIC Motor but retains its British heritage and dealer network, which has helped it sit comfortably in the UK top ten of all brands.
BYD has been the standout story. Registrations climbed from 8,788 in 2024 to 51,422 in 2025 — a year-on-year jump of 485%. That was enough to put BYD ahead of Tesla’s UK registrations of 45,513 for the year. The brand’s growth has been backed by an expanding dealer network and high-profile awareness campaigns, including its sponsorship of the 2024 European Championships.
Jaecoo, part of the Chery Group, has come from almost nowhere. It registered 209 cars in the UK in 2024 and 28,232 in 2025. By March 2026, the Jaecoo 7 was identified by the SMMT as the single best-selling model in the UK that month, with 10,064 units registered.
Omoda has done much the same, with 19,855 registrations in 2025, enough to overtake Suzuki. The Omoda E5 was the UK’s best-selling salary sacrifice electric car in 2025, finishing ahead of the Tesla Model Y on that measure.
Lower down the order, Chery, Polestar, Leapmotor, GWM, Geely, Changan, Xpeng and Skywell all gained ground, though their volumes remain smaller.
What’s making the bigger industry waves is the squeeze on established brands. According to data analysed by The Car Expert, the combined year-to-date registrations of BYD and the Chery Group are now ahead of Volkswagen — historically the UK’s dominant single brand. Their growth is also outpacing the wider market, which means they’re not just adding to total sales but actively taking them away from existing players.
Japanese brands have not collapsed — Toyota, Honda, Nissan, Mazda and Suzuki all still sell strongly in the UK — but they’re holding ground rather than gaining it. Globally, both BYD and Geely have now passed established Japanese names like Nissan and Honda in production volumes, with BYD ranking sixth globally and Geely eighth in 2025.
A few factors explain the shift. Chinese brands have moved quickly on electric and plug-in hybrid technology, both of which are increasingly important in the UK market as the Zero Emission Vehicle mandate ratchets up. Pricing has been aggressive, with cars like the BYD Dolphin Surf available under £19,000 and the Jaecoo 7 PHEV offering a total range of around 745 miles for around £35,000. Warranty packages — seven years from MG, Omoda and Jaecoo, and comprehensive battery cover from BYD — have helped reassure buyers stepping into unfamiliar brands.
For UK private hire and taxi drivers, the appeal is straightforward. Low running costs, long warranties, plenty of standard kit and competitive list prices are exactly what’s needed when the car is your workplace. The MG4 has already become a familiar sight on rideshare apps, and BYD’s lineup is increasingly being taken seriously by fleet buyers and owner-drivers alike.
The big question for the rest of the year is how legacy brands respond. Discounts of more than £5 billion across the industry already played a part in pushing 2025 sales over the two million mark, according to Bloomberg. But discounting can only do so much when the competition is genuinely catching up — and in some segments overtaking — on the things that actually matter to buyers.
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Sources:
- Chinese sales surge sees new car sales top two million in 2025 — Motor Trader
- Chinese brands took 10% of new car market in 2025 — Electrifying
- How did Chinese car brands fare in the UK in 2025? — Car Dealer Magazine
- One In Ten Cars Sold In The UK Now Comes From China — Carscoops
- Chinese brands tighten grip on UK new car market in March 2026 — The Car Expert
- Chinese automakers overtake Japanese rivals in global vehicle sales — CGTN / Nikkei
- UK Car Sales Top 2 Million as Consumers Warm to Chinese Brands — Bloomberg
- BYD, Jaecoo and other Chinese brands to have ‘substantial impact’ on UK car market in 2026 — GB News
