Once treated as curiosities or written off entirely, Chinese cars have quietly secured a firm foothold in the UK’s market. By the end of 2025, vehicles imported from the Far East are expected to make up around 10 percent of all new car sales in the country. The days when Chinese models were casually dismissed by Western buyers now seem increasingly out of step with reality.

Read: Europe Tried To Block Chinese Cars But Ended Up Helping Them Instead

A new report from The Guardian, citing European EV analyst Matthias Schmidt, estimates that once the final sales numbers for 2025 are in, Chinese brands will have sold more than 200,000 new vehicles in the UK.

MG and BYD Drive the Surge

The lion’s share of that success comes from three names in particular: MG, BYD, and Chery. Meanwhile, as Chinese manufacturers have gained ground, demand for Japanese cars has noticeably slipped.

MG continues to lead the pack by a wide margin. It sold over 70,000 cars in 2025, keeping pace with its strong performance from the previous year. BYD has also stepped up in a significant way, increasing its UK sales from fewer than 9,000 in 2024 to more than 40,000 this year. Their presence on British roads is no longer novel.

Several other Chinese brands posted significant gains during the year as well. Jaecoo sold over 20,000 vehicles, while Omoda came close to that same figure. Chery, Polestar, and Leapmotor have also continued to find traction with UK buyers, though on a somewhat smaller scale.

At the same time, Japanese brands have seen their market share in the UK slip by nearly a full percentage point over the past twelve months. The decline isn’t dramatic, but it is measurable, and it mirrors trends playing out across the continent.

Why Tariffs Didn’t Slow Things Down

As The Guardian reported, Chinese car sales have risen across the European continent despite the imposition of steep tariffs. In an effort to protect domestic manufacturers, European lawmakers introduced these measures late last year, targeting EVs produced in China. However, the tariffs do not apply to hybrid or internal combustion models, and sales of those have surged accordingly.

The UK, now outside the EU, has proven especially receptive to these brands. With no major domestic carmakers remaining, the market is wide open.

“With no genuine domestic volume brands for UK consumers to choose from, UK consumers crucially can no longer participate in what is known as patriotic purchasing,” said analyst Matthias Schmidt. “In Germany and France, half of each country’s new-car market is effectively in the control of domestic brands. While in China, we now also see that two-thirds of the market is accounted for by domestic brands.”

We’ve become quite accustomed to hearing about impossibly cheap EVs coming out of China, easily undercutting those from Europe, the US, Japan, and elsewhere.

The Dacia Spring fits that mould in one sense, as it’s built in China, but it arrives wearing a European badge and undercutting everything else on the market. It’s the cheapest EV currently on sale in the UK, thanks to the new £3,750 ‘Dacia Electric Car Grant’.

Read: Dacia’s EV Tortoise Just Got A Hare Transplant

For the freshly updated 2026 model, the Dacia Spring starts at just £12,240 ($16,415 at current exchange rates) including all on-road charges.

That makes it cheaper than the long-reigning Dacia Sandero, which has typically held the title of Britain’s most affordable car, unless you count outliers like the Citroën Ami quadricycle. Even the Leapmotor T03, another low-cost Chinese EV, can’t quite match it on price, starting from £15,995 ($21,400).

In the UK, the high-riding hatchback with the crossover aesthetics is offered in two forms: the Expression Electric 70 and the Extreme Electric 100. The total, on-the-road price for the base model technically starts at £15,990 ($21,400), while the flagship model starts at £16,990 ($22,800).

However, both are available with Dacia’s £3,750 ($5,000) grant, bringing the prices down to £12,240 ($16,415) and £13,240 ($17,700), respectively.

What’s New For 2026?

Several important upgrades have been made to the Spring for 2026. For example, Dacia has revised the chassis, suspension, and brakes, aiming to make the EV “feel more secure, more composed, and more capable across a wider range of everyday situations.”

Additionally, both models now include a new 24.3 kWh lithium-ion phosphate battery.

Both the Expression Electric 70 and Extreme Electric 100 feature single electric motors, but as their names suggest, the base model is capped at 70 hp while the range-topper delivers 100 hp.

This version also includes copper-accented styling, electric rear windows, a larger 10.1-inch infotainment display with wireless Apple CarPlay and Android Auto, and a vehicle-to-load function. Both models can travel up to 140 miles on a charge.

This time last year, Jaguar revealed the wild Type 00 concept, the first look at its all-electric future and a statement of intent to compete with Bentley and Rolls-Royce.

As development of the production version continues, a matte red example of the concept has been spotted on London’s streets, marking the marque’s 90th anniversary and coinciding with the unexpected departure of its longtime design chief, the figure behind the brand’s polarizing rebrand.

The Type 00 was originally shown in Miami Pink and London Blue during the official launch. Earlier this year, the model was dressed in a French Ultramarine livery and made a surprise appearance during the Paris Fashion Week.

Read: Jaguar’s Future GT Has No Rear Window And No Patience For Cargo

The company has now unveiled a fourth color variation, London Red with a matte finish, as the concept makes its arrival in the UK capital. The new shade draws inspiration from the redbrick Victorian architecture of Kensington, one of London’s most recognizable neighborhoods.

Jaguar

The freshly repainted concept was photographed alongside a classic 1935 Jaguar SS outside the Chancery Rosewood Hotel.

For those wondering, no other changes have been made to the concept’s exterior. It still rides on the same 23-inch alloy wheels, while the minimalist cabin remains finished in white and gray upholstery accented by ambient lighting.

Photos shared by Jaguar UK Director Santino Pietrosanti on LinkedIn show the Type 00 parked alongside some exotic company, including a Bugatti Chiron, Rolls-Royce Cullinan Black Badge, Ferrari F8 Tributo, and Lamborghini Aventador SVJ.

Santino Pietrosanti / LinkedIn

The brand’s rebrand has been met with mixed reactions. Its ad campaign, oddly enough, featured no cars at all, leaving many scratching their heads. It was also rather odd that it initially showcased the Type 00 in a bright shade of pink, which didn’t do the car any favors.

Still, under London’s gray winter light, the matte red finish lends the concept a sense of gravitas. Out in the open, it naturally draws attention, albeit that’s not really surprising for a concept car. Much like the Tesla Cybertruck, its unconventional form challenges expectations so completely that people can’t decide whether they admire it or despise it. There seems to be little middle ground.

The Road Car

Prototypes of the production version suggest Jaguar plans to stay faithful to the concept’s striking proportions. The roadgoing model will, however, take a more practical shape with four doors and a longer wheelbase, built on the company’s new Jaguar Electrical Architecture platform.

More: Jaguar’s Future GT Has No Rear Window And No Patience For Cargo

As per recent reports, the EV should have a driving range of up to 430 miles (692 km) and support fast charging, adding 200 miles (322 km) of range in just 15 minutes.

Only time will tell if those who would ordinarily shop for a Bentley or Rolls-Royce will be willing to spend their money on a vehicle that looks as controversial as this.

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JLR Design Chief Axed

In separate news, it has been confirmed that Jaguar Land Rover design boss Gerry McGovern has departed from the brand. No official reason has been given for this high-profile departure, but it comes shortly after former chief financial officer at Tata, PB Balaji, was named as JLR’s new chief executive.

Citing insider sources, Autocar India reports that McGovern was “escorted out of the office” on Monday, with his contract being terminated with immediate effect. The man behind Jaguar’s relaunch has spend over two decades at JLR, being responsible for successful models including the new Land Rover Defender.

According to business economics professor at the University of Birmingham, David Bailey, McGovern’s exit marks a “symbolic end of an era.” He told The Guardian that it may also be a sign that Tata wants to exert more control over the British company.

Thanos Pappas contributed to this story.

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The UK government has just detonated a policy bomb under Britain’s electric-car market. Hidden inside the Chancellor’s Budget announcement is confirmation that both EVs and hybrids will face a new per-mile road charge, marking the first time electric motoring will stop being a tax-free ride.

After years of looking for a replacement for fuel duty as petrol and diesel sales decline, the Treasury has finally shown its hand.

Related: Your Green Plug-in Hybrid Is An Eco Sham, Study Finds

Britain is officially preparing to tax EVs for every mile they travel, shifting them into the same revenue-raising category as combustion cars even as it still claims to support the transition to cleaner transport.

How Will It Work?

Drivers of fully-electric cars will pay 3 p ($0.40) per mile and plug-in drivers are to be stung with a 1.5 p ($0.20) charge.

A driver covering up to 8,500 miles (13,700 km) will end up with a bill of around £255 ($336), the BBC reports, which is still roughly half of what a combustion-car driver would pay in fuel duty to drive the same distance.

The Office for Budget Responsibility (OBR) estimates the plan would bring in £1.1 billion ($1.45 billion) in its first year, a figure which could virtually double two years later, depending on how EV sales go. The trouble is, their take-up is expected to be hit by the introduction of this very scheme.

When and How?

The Budget didn’t include all the fine print. Important details such as how the number of miles driven will be accurately logged, comes later. But mileage-based charging is definitely coming, scheduled to kick in from April 2028.

Some US states, including Oregon, already have mileage-based charging schemes, as does New Zealand.

To soften the blow and keep drivers interested in EVs, the UK government is simultaneously raising the price threshold for the “expensive car supplement” on its VED from £40,000 to £50,000 ($53-66k) starting April 2026. That means a Tesla Model Y or Kia EV6 owner won’t be hit by punitive road-tax surcharges quite as quickly as before.

In other words: here’s a little carrot before we get to the pay-per-mile stick. Ministers will also extend the EV grant scheme – which offers subsidies of up to £3,750 ($4,950) – all the way to 2029-30, costing it around £300 million ($395 million) per year.

Chinese carmakers continue to accelerate their presence across Europe, steadily carving out a larger slice of the market. Once regarded as niche entrants, they now account for a 6.8 percent share of total European sales in October, with powerhouses like SAIC and BYD leading the charge while Tesla’s momentum falters.

Chinese Brands Gain Ground

In that month alone, around 75,000 vehicles from Chinese brands were sold across the European Union, the UK, and EFTA nations, which include Iceland, Liechtenstein, Norway, and Switzerland.

SAIC enjoyed a particularly strong month, with sales soaring from 17,552 in October last year to 23,860 this October. Across the January-October period, its sales have also risen 26.6 percent from 197,686 to 250,250 units.

Read: BYD’s European Expansion Is About to Explode

BYD is also enjoying a surge in demand and has almost triple Tesla’s sales. In October, the company sold a total of 17,470 vehicles across the region, a 206.8 percent rise from 5,695 last October. Year-to-date, its sales have increased by a monumental 285 percent, from 35,949 to 138,390 units.

Tesla’s Bloodbath

Things are not looking so pretty for Tesla. In October, its European sales slipped 48.5 percent from 13,519 units in the same month last year to just 6,964 in 2025. That means it fell even behind Porsche, which itself recorded a 26 percent sales decline but still usurped Tesla with 7,653 sales. Through the first ten months of the year, the American brand’s local sales have fallen 29.6 percent to 180,688.

Of the new cars sold by Chinese brands across the region in October, 36 percent were battery-electric vehicles. Of these, the small BYD Dolphin was the best-seller.

EU + EFTA + UK New Car Sales

Europe Sales Rise

Across Europe, new car registrations have edged up 1.4 percent, with battery-electric vehicles now holding a 16.4 percent share.

In the first ten months of 2025, 1,473,447 new battery-electric cars were registered across the EU. This growth owes much to the four largest markets, including Germany (+39.4%), Belgium (+10.6%), the Netherlands (+6.6%), and France (+5.3%), which together make up 62 percent of the total. In October alone, year-on-year battery-electric registrations rose by 38.6 percent.

Hybrid-electric cars continue to dominate as the most popular powertrain, holding a 34.6 percent share of the market. Between January and October 2025, registrations reached 3,109,362 units, led by Spain (+27.1%), France (+26.3%), Germany (+10.3%), and Italy (+8.9%).

Plug-in hybrids are also on the upswing, totaling 819,201 registrations, a 43.2 percent increase over last year. Demand has been especially strong in Spain (+109.6%), Italy (+76.5%), and Germany (+63.4%). Plug-in hybrids now represent 9.1 percent of all EU registrations, up from 7 percent a year ago.

Petrol-powered cars still hold 27.4 percent of the market, though their share has dropped from 34 percent last year as combustion sales continue to contract. Through October, petrol registrations fell 18.3 percent across major markets, with France down 32.3 percent, Germany 22.5 percent, Italy 16.9 percent, and Spain 13.7 percent.

Diesel continues its downward trend too, shrinking by 24.5 percent to a 9.2 percent market share.

Electric car owners in the UK may soon find their zero-emissions glow dimmed slightly by the Labour government. Chancellor Rachel Reeves is reportedly preparing a pay-per-mile tax for EVs to help plug the giant hole left by declining fuel duty receipts.

Related: UK Brings Back EV Discounts But Only If You Don’t Spend Too Much

With more drivers ditching petrol pumps for charging cables, the Treasury suddenly finds itself missing billions in the “please drive somewhere so we can tax you for it” department.

The reported figure being floated? Around 3 pence ($0.04) per mile, which at 8,000 miles (12,900 km) a year would equate to a £240 ($315) bill. T

he government is expected to argue that while UK EV drivers might be disappointed by the new charge, they’ll still get a better deal than drivers of petrol and diesel-engined vehicles who pay around £600 ($784) per year in fuel duty.

But there’s no doubt the news first reported by The Daily Telegraph, if true – and these kinds of stories are usually leaked from within government – will be another blow to EV drivers, who from this year have been forced to pay the annual Vehicle Excise Duty previously only payable by petrol and diesel drivers.

Factor in that £195 ($255) annual VED bill, and an EV owner covering 8k miles a year could be asked to pay £435 more to drive their car in 2028, when the scheme is alleged to go live, than they did in 2024.

On the positive side, the new Labour government did introduce grants of up to £3,750 for buyers of new electric cars three years after the previous government axed the original scheme.

It’s not clear how such a scheme would be monitored; reports suggest that it would be up to drivers to volunteer their own mileage estimate figures for the coming year, rather than the government electronically tracking them. If they were later found to have driven more or fewer miles than estimated, they could either get a rebate or a bill.

EV drivers aren’t the only ones left dismayed by the still-unofficial news. The UK’s Society of Motor Manufacturers and Traders (SMMT) said it recognized the need for a rethink over vehicle taxation.

However, it described pay-per-mile as “entirely the wrong measure at the wrong time,” one that would end up “deterring consumers and further undermining industry’s ability to meet ZEV mandate targets, with significant ramifications for perceptions of the UK as a place to invest.”