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UK Chinese car sales soar as tariff gap widens
Chinese-made car sales in the UK soared to 285,000 in 2025 as tariff-free plug-in hybrids undercut European rivals.
Image: TNW
Chinese-made car sales in the UK rose from 384 in 2015 to 285,000 in 2025, according to automotive consulting firm Mobility Global. The surge is accelerating: BYD nearly doubled its UK sales in the first half of 2026, exceeding 37,000 units, while Chinese brands now account for roughly 13% of new car registrations—double their share a year earlier.
Why Chinese automakers are gaining ground in the UK
The UK’s tariff policy has helped make it the most accessible major Western market for Chinese automakers. Britain applies no additional tariff on Chinese plug-in hybrid vehicles, while the EU charges countervailing duties of up to 35.3% on Chinese battery-electric vehicles and is preparing additional levies on plug-in hybrids. The US applies a 100% tariff.
“It becomes an excellent size market that’s progressing well towards electrification and is in demand for some cheaper vehicles with that void to fill.”
The pricing gap is significant. A Volkswagen Tiguan plug-in hybrid built in Germany sells in the UK for just over £43,000 ($58,000). The BYD Seal U, built in China, costs almost £10,000 less. Buyers speaking to CNBC at a Geely dealership in Maidstone cited better equipment at a lower price.
Canada opened its market to Chinese EVs in January with a 49,000-unit cap. The UK has no quota and no additional duties on Chinese plug-in hybrids.
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China’s export push
China’s domestic auto market is cooling. Retail sales fell 26% in the first half of 2026, while exports rose 72%, according to the China Association of Automobile Manufacturers. Former GM board member Jon McNeill said Chinese automakers are entering Europe with attractive prices and technology that outperforms what many European manufacturers offer.
Geely has stopped building new factories and is instead using Volvo’s existing plants to sidestep tariffs and absorb overcapacity. If Chinese market share continues to climb, pressure on the UK to align with EU tariff policy is likely to increase. For now, 285,000 cars sold in one year shows how quickly the market has shifted.
Frontier Editor
Dan is our resident futurist, covering electric mobility, space exploration, and the smart home. He's interested in atoms just as much as bits. Whether it's a new battery chemistry, a reusable rocket, or a protocol that finally makes IoT devices talk to each other, Dan breaks down the engineering that pushes humanity forward.
via TNW
