China sets sights on UK car market as lack of tariffs puts British manufacturing at risk - 'Taking from everybody'

Hemma Visavadia

By Hemma Visavadia


Published: 20/01/2026

- 08:34

Nio, Aion and Zeekr are all set to launch electric vehicles in the UK this year

Chinese brands are set to dominate the UK electric car market this year with the launch of three new automakers in a blow to British manufacturers.

Research shows that due to the UK's decision not to impose tougher import tariffs on vehicles made in China, the electric car market hasdiversified.


Nio, Aion and Zeekr are the latest Chinese brands lining up to sell cars in Britain, which is now Europe's second-largest electric vehicle market.

China's domestic car market is fiercely competitive, with dozens of brands battling for customers, prompting manufacturers to look overseas for growth.

The UK became an attractive option, partly because British buyers appear more willing to try new and unfamiliar brands, as well as the Zero Emission Vehicle mandate, which is pushing drivers towards EVs.

Another key factor is that the UK no longer has a major home-grown mass-market car manufacturer, making it easier for overseas brands to enter the market and compete with long-established names.

Chinese firms such as BYD and Chery have already taken sales from brands including Toyota, Hyundai and Mercedes-Benz, showing how quickly the market is changing.

Zeekr, the electric car arm of Geely, is one of the latest companies planning a UK launch. It has already rolled out across 12 European countries, with Britain expected to follow either later this year or in early 2027.

Electric car charger and a Chinese flag

Chinese car brands BYD and Chery have seen UK sales exceed in the past year

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GETTY/REUTERS

Speaking at the Brussels motor show, Zeekr Europe's acting chief executive, Lothar Schupet, said the company wanted to cover more than 90 per cent of Europe by the end of 2026.

Zeekr said it would be positioning itself as an "accessible luxury" brand, offering premium-style cars at more competitive prices.

Figures from the Society of Motor Manufacturers and Traders show the combined share of Chinese car brands in the new car market doubled in 2025, rising from five per cent to 10 per cent.

Chinese manufacturers accounted for 18 per cent of all new car sales in December. BYD increased its market share to five per cent, up from just one per cent a year earlier.

The All-New Zeekr 7GT

The new Chinese vehicle is set to launch in the UK this year

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ZEEKR

The sales are helping support the wider UK car market, which has still not returned to pre-pandemic levels of around 2.5 million vehicle sales a year.

Both BYD and Chery have built large dealership networks across Britain. Nio plans to launch a smaller electric car under its Firefly sub-brand, while state-owned GAC is preparing to introduce its Aion range.

Chery, which already sells cars under the Omoda and Jaecoo names, is considering launching a third brand called Lepas.

Geely entered the UK market last year and has said it aims to sell up to 100,000 vehicles a year, enticing drivers with an eight-year warranty on its batteries.

The Geely EX5

The Chinese brand is expected to become more dominant in the UK

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GEELY

Other Chinese brands that arrived in 2025 include Changan, Xpeng and Leapmotor, which is backed by Stellantis.

Auto Trader's chief commercial officer Ian Plummer said new entrants, mainly from China but also from the US, could hold 20 per cent of the UK market by 2028.

He also warned that Chinese firms are not just selling electric cars, as many offer petrol and hybrid models too, allowing them to compete across the entire market.

"They're not just taking sales from one group," Mr Plummer told the Financial Times. "They're taking a bit of share from everybody."