Chinese car sales could skyrocket in UK as Trump threatens tariffs

Drivers across the UK have been urged to brace for a range of new Chinese models as US President Donald Trump threatens to introduce more tariffs on models imported to America.

According to figures published by the Society of Motor Manufacturers and Traders (SMMT), nearly 100,000 Chinese-made cars were sold in 2024, representing five percent of the market. However, many are expecting this figure to rise sharply in 2025, with more brands launching in the UK as other countries continue to introduce expensive tariffs on the models.

Oliver Lowe, product manager for Jaecoo and Omoda (two of the latest Chinese car companies to reach the UK), said they hope to follow in the footsteps of the South Korean brands that entered the market in the 1980s and 90s.

He explained: “It’s similar to the position that Hyundai and Kia used to be in. People saw them and thought ‘Honda has a good reputation, but Hyundais are cheaper and have a strong warranty’.

“All Jaecoos will come with a seven-year, 100,000-mile warranty, plus we’re at a price point where we can take on anyone. We had one dealer tell us someone traded a Porsche Panamera in for one!”

According to the SMMT, MG was the UK’s most popular Chinese brand of 2024. The once British-owned firm sold 81,536 vehicles – more models than a wide range of Western brands, including Vauxhall, Skoda, and Renault.

Currently, one of the biggest incentives to buy a Chinese car is the generally lower prices they are sold at. To protect the local automotive industry, some countries have introduced tariffs on the models, causing many brands to focus more on nations such as the UK.

While this means that UK buyers are able to choose from a wider range of affordable models, it has created concerns that traditional brands could see a slump in sales as they struggle to compete.

Currently, the UK Government has oposed the idea of introducing a tariff on Chinese-made models. A Government spokesperson stated: “We are always vigilant to international developments and are very clear that any action over the implementation of tariffs has to be the right one for our domestic automotive industry.”

However, a growing number of countries have already introduced a tax on the models. These include America, with the previous Biden Administration introducing a 100 percent tariff on all EVs made in China, and Canada, which has an identical tariff.

The cars are also heavily taxed in EU countries, where models built by companies owned by the Chinese Government face the highest tariffs. Currently, models from MG are subject to the biggest tariff, with buyers paying a hefty 35.3 per cent.

However, without tariffs on Chinese-made models, many companies are using traditional methods to promote their vehicles to a potentially sceptical UK market.

Victor Zhang, executive vice president of Omoda & Jaecoo UK, hopes to gain a foothold by creating a strong network of franchised dealerships, often in place of Western companies that have moved towards online sales to save money.

He said: “Before we started, we considered the best dealership approach – many companies now do agency work. We’re focusing on franchised dealers, and that’s a win-win for both the customers and us.

“People often trust their dealership and have done for two or maybe three generations, and we want to maintain that confidence. Currently, we have 71 dealers in the UK – from the southern coast, up to Scotland – basically every major city in the country.”