In June, 1 in 10 cars sold in the entire United Kingdom were manufactured by Chinese companies. This represents a major breakthrough in market share for Chinese auto brands. This development fits a global pattern as the UK is swept up in a rapidly increasing tide of vehicles produced by Chinese OEMs. Last year, the share of Chinese cars sold in the UK stood at only 6%, highlighting a notable shift in consumer preferences and market dynamics.
The surge in Chinese vehicles comes at a time when the UK’s percentage of car sales made in China is slightly lower than Spain’s, which recorded 9.2% for the same period. Chinese brands sold more than 8% of all vehicles in the UK in the first half of this year. That’s every 12th car sold! According to industry projections, 2023 and 2024 will see Chinese cars making up around 5% of overall UK sales.
Now, the likes of BYD, Jaecoo and Omoda are entering the UK market with all guns blazing. They’re laser focused on electric vehicles and winning market share by the minute. While the vast majority of Chinese cars sold in the UK are EVs, they are not exclusively relegated to this camp. Whether this will be enough has been aided immensely by the increase in popularity of electric vehicles within the UK, boosting these brands even further.
Sure enough, industry analysts are paying attention on this front. Felipe Munoz, a well-known automotive industry analyst, drew attention to the opening this creates for Chinese manufacturers. In the absence of tariffs on Chinese vehicles, they have a free run at the UK market. This new talent has created concern among those veterans of the industry. John Neill, the former President of the Society of Motor Manufacturers and Traders (SMMT) and former chief executive of Unipart, is one. Neill warned that the expanding footprint of Chinese manufacturers would pose an existential risk to the local automotive ecosystem.
As competition intensifies, some industry leaders have suggested that the UK might need to introduce quotas to safeguard its domestic car industry. The potential impact of Chinese manufacturers opening factories in the European Union further complicates matters, as they seek to export vehicles tariff-free across Europe, including the UK.
In June, consumers in the UK bought 18,944 cars from Chinese-owned manufacturers such as MG and Polestar. This surge, perhaps more than any other metric, illustrates the growing footprint these manufacturers have in the Hoosier state and surrounding markets. Now, Chinese brands are capturing the heart of British consumers. Yet their growing influence on today’s changing automotive landscape has started an open, intentional dialogue within the industry.