Chinese electric vehicle makers are accelerating their footprint in the UK auto market, with BYD and Chery reporting dramatic sales growth in July despite a broader contraction in car sales across the country.
According to new figures released by the Society of Motor Manufacturers and Traders (SMMT), Chinese carmakers defied a 5% decline in overall UK car sales, capitalizing on aggressive pricing strategies and growing brand recognition. BYD, now the world’s top battery electric vehicle (BEV) producer by volume, saw its UK sales quadruple year-on-year to 3,200 units in July alone. For the first seven months of 2025, the company has moved 22,600 vehicles, a sixfold increase over the same period last year.
Meanwhile, Chery, through its Omoda and Jaecoo brands, entered the UK with remarkable speed, selling 19,000 units so far this year after having no market presence in 2024. Their swift entry and volume delivery reinforce China’s rising competitiveness in premium design and vehicle manufacturing.
This surge comes despite structural headwinds. The UK car market is struggling with sluggish consumer spending and policy uncertainty surrounding a new government subsidy scheme that offers up to £3,750 for qualifying EV models. Crucially, Chinese brands have been excluded from this grant due to concerns about carbon-intensive electricity grids in their home production markets. Even so, Chinese carmakers continue to push forward, undeterred by regulatory barriers.
“Chinese EV brands are no longer just low-cost alternatives. They’re setting benchmarks in technology, range, and design, all while remaining highly price-competitive,” said a UK-based auto industry analyst. “Their rapid success, especially BYD’s, shows they are rewriting the rules of global EV competition.”
While China’s newcomers gained ground, American rival Tesla posted a steep 59% drop in UK sales in July. For the first seven months of the year, Tesla’s numbers slipped by 7% compared to 2024, even with the recent refresh of its flagship Model Y. Analysts suggest that the volatility may stem from logistics and timing of imports, but political distractions and brand fatigue in key Western markets may also be at play.
Not all Chinese EV brands saw gains. MG Motor, owned by state-backed SAIC and long established in the UK under its British legacy nameplate, recorded a 10% year-on-year decline to 5,600 units in July. Nonetheless, MG remains the largest Chinese-owned car brand in the UK and the 12th overall by market share.
Smaller players such as Xpeng and Leapmotor are also dipping their toes into the British market. Xpeng, which only entered the UK in February, has sold 164 premium EVs, while Leapmotor, backed by a distribution deal with Stellantis, has sold 790 units so far in 2025.
Ultra-niche entrants like Skywell, a joint venture between electronics firm Skyworth and bus maker Nanjing Golden Dragon, are still testing the waters. In July, Skywell sold just five vehicles in the UK, though its bold marketing promises “all-round health and pleasure cockpits” and “novel hugging seats.”
China’s Global EV Push Continues
The UK expansion is just one front in a broader global offensive by Chinese automakers. Their growing footprint in Europe, Latin America, and Southeast Asia marks a new chapter in China’s industrial strategy, from “Made in China” to “Driven by China.” With robust EV ecosystems at home and maturing supply chains, Chinese brands are leveraging economies of scale and innovation to capture international markets where legacy automakers once held dominance.
For China’s automakers, the UK is not just another export market, it’s a proving ground. And with BYD and Chery’s latest performance, they’ve already sent a clear signal: China’s electric mobility revolution is going global, and it’s picking up speed.