European Auto Market | UK July 2025: MG and BYD sales remain strong

In July 2025, the UK new car market delivered a mixed performance report—140,154 registrations not only represented a 5% year-on-year decline but also marked the lowest level for the same period since 2022.

Behind this data, the decline of traditional internal combustion engine vehicles became increasingly evident, with gasoline car market share dropping below 50% to just 47.3%, while diesel vehicles further shrank to 5.7%.

However, against the backdrop of overall demand contraction, plug-in hybrid and pure electric vehicles bucked the trend with year-on-year growth rates of 33% and 9.1%, respectively, collectively capturing nearly 34% of the market share, a direct reflection of the UK automotive market's deep-seated transformation.

Amid this powertrain transition, Chinese brands are becoming increasingly prominent. BYD's monthly sales reached 3,184 units, with a fivefold increase year-to-date, while Jaceoo and Omoda made their debut in the top 25 rankings. If MG has established itself through years of cultivation, BYD is aggressively entering the high-value-added market with its electrification technology.

From technological penetration to product recognition, Chinese automakers have achieved breakthroughs in both sales and brand influence, selling many vehicles in the UK.

Overview of the UK New Car Market:

Traditional Powertrains Decline,

New Energy Drives Structural Transformation

In July 2025, UK new car registrations stood at 140,154 units, a 5% year-on-year decline, not only lower than the same period in 2024 but also down 10.8% compared to pre-pandemic levels in 2019.

Despite short-term market pressure, year-to-date cumulative sales still saw a slight increase of 2.4%, reaching 1.182 million units, the best performance for the same period in nearly five years.

From purchasing channels:

◎ Private car buyers accounted for 36.8% of the market, up slightly from 36.2% in the same period last year, indicating sustained consumer confidence;

◎ Fleet sales and commercial vehicles showed divergence, with the former still dominating the market(59.5%), but growth slowed to just 1.6%; the latter grew by 10.4%, though its overall share remained low at 2.1%.

In terms of powertrain structure, traditional internal combustion engine vehicles continued to lose momentum.

◎ Gasoline car sales fell by 14.7% year-on-year, with market share dropping from 52.7% to 47.3%;

◎ Diesel vehicles declined by 7.9%, with share falling to 5.7%.

◎ Hybrid vehicles also underperformed, with a 10% year-on-year decline.

In contrast, plug-in hybrids and pure electric vehicles emerged as the two major growth drivers.

◎ Plug-in hybrids grew by 33% year-on-year, with market share rising to 12.5%;

◎ Pure electric vehicles grew by 9.1%, with market share increasing to 21.3%.

Year-to-date, plug-in hybrid cumulative sales have grown by 31.5%, while pure electric vehicles have increased by 16.8%, reflecting UK consumers' continued embrace of low-carbon, clean mobility solutions and the initial effects of policy guidance and infrastructure improvements.

From brand performance:

◎ Volkswagen remained the top brand, selling 13,452 units in July with a 9.6% market share, the only brand to exceed 10,000 units in a single month.

◎ Ford surged to second place with 16.5% growth, achieving a year-to-date market share of 5.9%.

◎ Kia, Audi, and BMW ranked third to fifth, respectively, but all experienced varying degrees of sales decline.

◎ Some standout brands like Skoda and Peugeot recorded growth of over 30% in July, with Peugeot increasing its market share by nearly 40% over the past year, indicating that mid-range brands are gradually encroaching on the market space of premium German brands.

◎ Meanwhile, Nissan, Toyota, and Mercedes-Benz all saw significant declines, reflecting a more diversified competitive landscape.

At the model level,

◎ The Kia Sportage once again became the best-selling model of the month, ranking second in year-to-date cumulative sales, just behind the Ford Puma.

◎ Nissan Juke and Mini Cooper ranked third and fourth, respectively, both recording double-digit growth;

◎ Volkswagen Tiguan, Peugeot 2008, and other compact SUVs maintained strong performance, while Volkswagen also secured multiple spots in the sales rankings with its Tiguan, T-Roc, and Golf models.

Overall, the UK market is accelerating its transition from traditional fuel vehicles to new energy models, with compact and urban SUVs remaining the main consumer preference. The stability of Japanese and German brands faces challenges, while mid-range European brands and select new energy brands are gradually gaining recognition.

Performance of Chinese Brands:

Multiple Breakthroughs, BYD Leads,

Jaceoo and Omoda Rise Rapidly

◎ In July 2025, MG ranked 12th with 5,637 units sold, a 9.5% year-on-year decline, but it remains the Chinese brand with the highest market share in the UK.

MG has deep brand roots in the UK, with a diverse model lineup and flexible pricing. Its HS and ZS series, representing fuel and plug-in hybrid models, continue to appeal to a segment of consumers.

◎ Chinese brands continue to gain momentum in the UK market. BYD ranked 19th with 3,184 units sold, a staggering 314.6% year-on-year increase, with year-to-date sales reaching 22,574 units, a fivefold surge, and a market share of 1.9%.

As one of the earliest Chinese new energy automakers to enter Europe, BYD is strengthening its brand recognition locally through its deep vertical integration in batteries and electric drive systems. Its main models, such as the ATTO 3(Yuan Plus) and Seal(Hai Bao), are gradually gaining visibility among UK consumers.

◎ Among new entrants, Jaceoo and Omoda made their debut in the UK mainstream sales rankings. Jaceoo ranked 21st with 1,915 units sold, while Omoda followed closely with 1,874 units, ranking 22nd. Having officially entered the UK market only at the beginning of this year, their rapid sales breakthrough is attributed to right-hand-drive adaptations and compliance adjustments tailored for the European market, as well as increasing UK consumer acceptance of compact SUVs and pure electric coupes.

◎ Leapmotor and XPeng, though currently with relatively low monthly sales of 248 and 8 units, respectively, represent exploratory market responses for smart EV startups entering the UK market for the first time.

From a model performance perspective,

◎ MG HS ranked 13th in monthly model sales with 1,678 units sold, a 31.4% year-on-year decline but still competitive in the compact SUV segment.

◎ BYD's main sales contributors have yet to break into the mainstream Top 10 model rankings, but given their higher average selling prices and focus on pure electric models, they still have potential for structural growth.

Over the past few months, Chinese brands in the UK market have evolved beyond being mere price competitors and are gradually forming differentiated value propositions.

◎ MG balances traditional and new energy models;

◎ BYD emphasizes electrification technology and smart cockpit advantages;

◎ Jaceoo and Omoda seek breakthroughs in user experience through differentiated styling, brand culture, and niche product strategies.

Summary

Plug-in hybrids and pure electric vehicles, with a combined 34% market share, are laying a solid foundation for this structural transformation.

The future of the UK automotive market is no longer dominated by internal combustion engines but is shifting toward electric propulsion and software-defined consumer logic. In this process, the most dynamic and disruptive variable comes from China. The transformation of Chinese brands from "price disruptors" to "technology pioneers" has already achieved a certain scale in the UK market.