Ministers accused of ‘giving China free pass’ to flood UK with cheap cars

Ministers have been accused of giving Chinese car makers a ‘free pass’ to flood the UK with cheap imports after figures showed a huge increase in their share of the market. Industry data revealed 24,357 vehicles were sold by ten Chinese brands in Britain in September – a key month as demand is boosted by new number plates. That was more than ten times the 2,347 sold – by just three brands – in September 2024. It brought the market share of Chinese cars to 7.8 per cent from less than 1 per cent a year before.

And that is before accounting for the likes of MG – a familiar British brand name, but one that is now Chinese-owned, with the cars made in China. MG sold 14,577 vehicles in the UK in September. Demand for new Chinese entrants has been boosted by the shift to electric cars, a market that has become dominated globally by Chinese manufacturers. 

The US and EU have tried to stem the tide by putting up steep tariff barriers, but Britain has not – something critics fear will leave the UK industry exposed to dumping by Chinese car companies.

Professor Jim Saker of Loughborough University, president of the Institute of the Motor Industry, said UK car makers were at a disadvantage, adding China’s market penetration was a ‘direct result of UK Government policy’. Chinese car makers are locked out of the US by 100 per cent tariffs and face EU import levies of up to 35 per cent, making zero-tariff Britain increasingly attractive.

At the same time, the UK is forcing car makers to hit a constantly rising quota of electric vehicles as a proportion of total UK sales. ‘By imposing penalties for companies that don’t hit the EV targets they are directly hitting those such as Toyota, Ford, Vauxhall and JLR, who have invested in the UK over the past 35 years,’ Saker said.

‘The Chinese manufacturers are being given a free pass into the UK with no responsibility to invest here. This appears to be what the British Government wants.’ The likes of BYD, Jaecoo and Omoda, until recently little known in the UK, are increasingly common sights on Britain’s driveways and in car showrooms. BYD sold 11,271 vehicles last month, just shy of Vauxhall’s 12,120, according to the Society of Motor Manufacturers and Traders (SMMT).

And motorists drove 6,489 new Jaecoo cars off forecourts – a market share of just over 2 per cent. A year earlier it sold none. SMMT boss Mike Hawes backed the UK’s open door policy, saying: ‘UK buyers benefit from a choice of more than 50 brands from around the world, and Britain has long been a competitive market welcoming global manufacturers.

‘Chinese brands comprise a small but growing proportion of new car sales – one in 12 in 2025. ‘Free and fair trade is the foundation of the UK industry’s success. Delivering a vibrant domestic market and manufacturing base are crucial to the sector’s health.’