Chinese carmakers led by BYD reported significant sales increases in the UK last month, despite a declining overall market. BYD's sales quadrupled year-on-year to 3,200 in July, even as total car sales fell by 5% to 140,000, according to data from the Society of Motor Manufacturers and Traders (SMMT).
The overall market contraction is attributed to a weak economy holding back consumer spending. Additionally, carmakers await clarity on which models qualify for new UK government grants of up to £3,750. Chinese manufacturers are excluded from these grants due to rules targeting countries with carbon-intensive electricity grids, but this has not deterred their aggressive push into Britain, one of Europe's most lucrative car markets.
BYD, competing with Tesla to be the world's largest electric vehicle maker, has undercut rivals on battery cars. Its UK sales in the first seven months of 2025 rose sixfold to 22,600. Chery, a state-controlled Chinese manufacturer, sold 19,000 vehicles under its Omoda and Jaecoo brands, up from zero last year.
In contrast, Tesla's UK sales slumped 59% in July to fewer than 1,000, despite a refreshed Model Y. Analysts cite political backlash against Elon Musk following his alliance with Donald Trump. Tesla's sales in the first seven months of 2025 fell 7% year-on-year.
Not all Chinese brands fared well. MG, owned by SAIC, saw sales drop 10% to 5,600 in July, though it remains the 12th biggest brand in the UK and the largest Chinese-owned brand. Other Chinese entrants like Xpeng and Leapmotor have sold only 164 and 790 units respectively in 2025, while Skywell sold just five cars in July.
