Chinese brands fuel UK new car market growth as buyers warm to new entrants

Chinese and other new entrant car brands are playing an increasingly significant role in the UK new car market, helping to drive a 9% year-to-date increase in registrations while reshaping consumer attitudes towards traditional automotive marques.

New research from Autotrader reveals that new entrant brands now account for 15.8% of all new cars sold in the UK in 2026, with Chinese manufacturers leading the charge as consumers become more open to alternatives to established European and Japanese brands.

However, the research suggests that while interest is growing, value remains critical. A survey of more than 2,000 UK drivers found that 30% of prospective buyers would expect a lower price when considering a new entrant vehicle. Of those respondents, 74% said they would require a saving of at least £3,000, while 38% would expect a discount of £5,000 or more compared with an equivalent model from a traditional manufacturer.

The findings highlight the rapid rise of Chinese brands in the UK market. Chinese EV giant BYD is now being considered by 22% of UK drivers, narrowing the gap with MG, which leads Chinese-owned brands on 28%.

Among newer arrivals, Jaecoo achieved a 15% consideration rate, while sister brand Omoda registered 10%.

Brand awareness has also surged. BYD’s recognition among UK consumers has more than doubled from 22% in December 2024 to 51% today, while Jaecoo has achieved awareness levels of 48%.

The research indicates a broader shift in consumer behaviour. The proportion of buyers who favour brands with a long automotive heritage has fallen from around 70% in 2024 to 55% today. Similarly, the number of consumers who say brand name influences their purchasing decision has dropped by 15 percentage points, rising to an 18-point decline among drivers aged under 44.

The appeal of European heritage is also waning. Just 14% of respondents said European origins were important when choosing a vehicle, roughly half the level recorded in 2024.

Younger motorists appear particularly receptive to Chinese brands, with 40% of under-30s saying they would consider a Chinese vehicle if offered at a competitive price. In contrast, only 11% of drivers aged 75 and over expressed the same view. Male drivers were more than twice as likely as female drivers to consider purchasing a Chinese-made car.

Price remains the strongest driver of interest, cited by half of respondents as the main reason for considering a Chinese vehicle. Safety ratings, extended warranties and strong aftersales support were also identified as important factors. However, concerns remain, with 23% of respondents citing issues such as data security and customer service as potential barriers to purchase.

Despite these reservations, consumer demand is translating into strong online interest. According to Autotrader data, six of the most in-demand new car models in June were Chinese vehicles.

The MG S9 was the most enquired-about new car on Autotrader’s platform, accounting for 3.2% of all leads. It was followed by the Jaecoo 7 on 2.2%, while the Jaecoo 8 and Chery Tiggo 8 also featured prominently in the top five.

At brand level, MG attracted the highest share of enquiries in June at 11.2%, ahead of BMW on 10.5%. Jaecoo ranked third with 7.4%, while Chery and Omoda also secured places in the top ten most-enquired-about brands.

The data also highlights the growing influence of Chinese manufacturers in the electrified vehicle market. Electric vehicles remained the most popular fuel type on Autotrader’s platform in June, accounting for 26.7% of enquiries, ahead of petrol at 23.5%.

However, plug-in hybrids recorded the strongest growth, with demand rising by 8.6 percentage points year-on-year, compared with 7.5 percentage points for battery electric vehicles. Chinese brands have been particularly successful in this segment, accounting for 43% of all plug-in hybrid registrations in the UK so far this year, compared with 20.9% of EV registrations.

Ian Plummer, Chief Customer Officer at Autotrader, said: “New brands are marching into the UK, but drivers are pushing for top value from all the new offerings.

“This is a market that has watched the likes of Hyundai and Kia build credibility over twenty years on a mix of price and warranty – now Chinese brands are being held to a similar standard. The brands that get the economics right will be the ones that scale.”

He added: “BYD is establishing itself in the UK faster than any brand we’ve tracked in a decade. A name that was virtually unknown to British drivers two years ago is now being considered by more than a fifth of the country. But this isn’t yet a story about Chinese brands in general taking off. Right now, it’s about two or three brands that have invested seriously in dealer networks, product and visibility that are stealing the march.”