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Chinese carmakers piling pressure on UK rivals, auto industry chief says
Chinese brands now hold about 15% of UK new car registrations, SMMT data show, as established automakers cut prices and costs to compete.
On Thursday, Society of Motor Manufacturers and Traders CEO Mike Hawes said Chinese-owned brands now account for about 15% of new car registrations in Britain, forcing traditional manufacturers to offer deeper discounts to compete.
Chinese brands have rapidly expanded their presence in Britain with competitively priced electric and plug-in hybrid models, while Germany's Volkswagen announced last week it would deepen cost cuts to remain competitive.
"They're under extraordinary pressure because the Chinese can produce good vehicles at a cheaper cost," Hawes said, as British vehicle manufacturing fell 7.5% in the first half of 2026.
Competition is only one factor affecting the industry, Hawes added, citing high energy costs and weak investment as additional pressures; no formal investigation into Chinese imports has been triggered by UK manufacturers.
Automakers across Europe are grappling with intensifying competition from Chinese rivals, though Britain has not introduced tariffs on Chinese-built electric vehicles that the European Union implemented in 2024.