Chinese car manufacturing giant BYD has declared the UK its largest market outside of China, following an extraordinary 880% surge in sales there in September compared to the previous year. The company reported selling 11,271 cars in the UK last month, with the plug-in hybrid version of its Seal U sports utility vehicle (SUV) accounting for the majority of the transactions.
Favorable Market and Record EV Adoption
This boom coincides with figures from the Society of Motor Manufacturers and Traders (SMMT) showing that sales of electric vehicles (EVs) hit a record high in the UK in September. The UK market is particularly attractive to companies like BYD because the country has not imposed tariffs on Chinese EVs, unlike other major global markets such as the European Union and the U.S.
BYD, which is known for offering more affordable models than many of its Western competitors, saw its share of the UK car market jump to 3.6% in September. The company is poised for further expansion, having recently opened its 100th retail outlet in Britain. BYD’s UK manager, Bono Ge, stated that the brand’s future in Britain looks “hugely exciting,” with plans to launch more new hybrid and electric cars in the coming months.
Sales Breakdown and Global Context
SMMT figures indicate that while overall EV sales in the UK reached a record high, with sales of pure battery electric vehicles climbing to nearly 73,000, sales of plug-in hybrid cars grew even faster. Despite the strong surge in electric and hybrid models, petrol and diesel vehicles still made up more than half of all new car sales last month. The top-selling cars overall in September included the Kia Sportage, Ford Puma, and Nissan Qashqai, but two Chinese models—the Jaecoo 7 and BYD Seal U—also secured spots in the top 10.
Globally, despite experiencing slowing sales in China, BYD remains well ahead of its U.S. rival Tesla. Its sales have also outperformed European competitors, including Jaguar and BMW. Meanwhile, the European Union announced in October last year that it would impose levies of up to 45% on Chinese EV imports, a measure intended to shield European car makers from what the EU believes are unfair Chinese state subsidies. Similarly, high tariffs have effectively shut Chinese car makers like BYD out of the U.S. market, a policy backed by both President Donald Trump and his predecessor.
The UK government attempted to boost EV adoption in July this year by allocating £650 million ($875 million) for discounts for car buyers, allowing claims of up to £3,750 on purchases of brands including Nissan, Peugeot, and Vauxhall. However, the scheme explicitly excludes Chinese-made vehicles due to the emissions generated during their manufacture. BYD has publicly criticized this decision, arguing that it will damage the UK’s car market in the long term.
What The Author Thinks
The UK market’s welcoming absence of tariffs is the clear catalyst for BYD’s explosion in sales, but the government’s refusal to extend EV subsidies to Chinese-made vehicles is a futile attempt at protectionism. The consumer data shows that demand for affordable EVs is overwhelming, proving that buyers will prioritize cost and availability over nationalistic purchasing incentives. By trying to block BYD from subsidies while allowing it to flood the market, the UK is ensuring its citizens get cheaper cars but simultaneously confirming the Chinese company’s dominance, potentially hindering the long-term competitiveness of its subsidized European and Japanese rivals.
Featured image credit: Farrel Atharic via Unsplash
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