Chinese brands tighten grip on UK new car market in March

Chinese car brands are continuing to reshape the UK new car market, with another storming set of registrations in the all-important month of March. According to data released by the Society of Motor Manufacturers and Traders (SMMT) this morning, the UK new car market grew 7% year-on-year in March. But the bigger story is that continued growth from Chinese giants BYD[1] and Chery Group (Chery[2], Jaecoo[3] and Omoda[4]) now accounts for more than the market's overall growth, meaning established brands are losing ground.

Two years ago, BYD was only just launching its first cars in the UK and Chery Group did not yet exist here at all. Now, their combined year-to-date registrations are ahead of Volkswagen[5], the UK's biggest single brand and traditionally the dominant force in the UK market. Their growth is also greater than that of the market overall, meaning they are taking thousands of sales away from other brands rather than simply adding to total registrations.

March was the clearest example yet of how this is changing the market. While March 2026 was the best March of this decade so far, it was still well short of the pre-pandemic years of 2017 to 2019. The last few years have suggested that car buyers are no longer as interested in the traditional new number-plate frenzy as they once were.

Private sales continue to drive growth

Continuing a consistent pattern from the last six months or so, overall market growth was led by private new car sales rather than fleet registrations.

While fleets still accounted for 55% of all new cars registered in March, their market share slipped from 57% a year ago. This largely reflects fleet acquisitions plateauing after two years of solid post-Covid growth, which in turn followed a two-year period where fleet numbers fell sharply during the pandemic. Private sales grew by 10%, comfortably ahead of the overall market growth of 7%, but these numbers are still well down on pre-pandemic levels when private buyers used to outnumber fleets in March.

Source: SMMT

EVs and plug-in hybrids growing, with more to come?

Both electric cars and plug-in hybrids posted strong growth in March.

Battery-electric cars were up 24%, while plug-in hybrids surged by 47%. That meant electrified vehicles - battery-electric, plug-in hybrid and conventional hybrid models combined - accounted for more than half the market in March, while petrol and diesel registrations both declined. EVs still need sustained growth this year if manufacturers are to stay on track with government-mandated sales targets, so March was a better month for the industry.

However, given the recent spike in petrol prices following the conflict in the Middle East, many may have been expecting a more dramatic showing. Because of supply chain timings, any real increase in demand caused by higher fuel prices is likely to feed through more clearly into the April and May results, with March only providing an early glimpse. Indications from within the industry are that EV demand has increased dramatically, with strong growth in orders being taken.

However, it will take a month or two for those cars to arrive and be registered. Plug-in hybrids have now been enjoying a renaissance for the last 12 to 18 months, led largely by BYD, Chery Group and MG. With the latest generation of plug-in hybrids capable of around 50 miles of electric driving, they allow many households to do most day-to-day journeys on battery power while keeping a petrol engine in reserve for longer trips.

Source: SMMT

Good month, bad month

March was another strong month for the leading Chinese brands, with BYD, Jaecoo and Omoda all posting huge gains.

The pressure they are applying to the market is broad-based, but it is most severe among mainstream volume brands. It was a good month for Alpine[6], BYD[7], Citro?n[8], Cupra[9], GWM[10], Jaecoo[11], Leapmotor[12], Mini[13], Omoda[14], Smart[15], Suzuki[16], Tesla[17] and Xpeng[18]. All of these brands outperformed the overall market by at least 10%.

Going in the other direction, it was a bad month for Abarth[19], Alfa Romeo[20], Chevrolet[21], Dacia[22], DS Automobiles[23], Fiat[24], Ford[25], Genesis[26], Honda[27], KGM[28], Lotus[29], Maserati[30], Maxus, Mazda[31], Mercedes-Benz[32], Nissan[33], Peugeot[34], Porsche[35], SEAT[36], Skywell[37], Subaru[38], Toyota[39] and Volkswagen[40]. All of these brands underperformed against the overall market by at least 10%. That means the following brands were about where we'd expect them to be: Audi[41], BMW[42], Hyundai[43], Jeep[44], Kia[45], Land Rover[46], Lexus[47], MG, Polestar[48], Renault[49], Skoda[50] and Vauxhall[51].

On top of this, we also have new brands who weren't around 12 months ago and therefore are not included in the above, such as Changan[52], Chery[53] and Geely[54]. Jaguar[55] is also still missing in action as the company retools for its EV relaunch later this year. Jaecoo recorded the largest absolute growth, adding more than 10,000 cars compared to last March, which is not surprising given that the brand had only just launched a year earlier. Going in the other direction, Ford had the biggest drop, losing almost 4,500 units compared to last March and sliding back after a stronger performance over the last six months.

Jaecoo 7 tops the charts

If you need a clear example of the Chinese grip tightening on the UK car market, the Jaecoo 7[56] is it.

With more than 10,000 registrations in March, the mid-sized SUV was comfortably the UK's best-selling car in the most important month of the year. That is especially significant in a month when private registrations outpaced fleet growth, suggesting this is not simply a fleet-driven story.

Source: SMMT

The Jaecoo 7 topping the charts also fits with the broader plug-in hybrid growth story. Along with the MG HS[57], it shows how quickly Chinese and Chinese-linked brands are moving into the mainstream of the UK market rather than remaining niche players on the edge of it.

Legacy best-sellers like the Ford Puma[58], Nissan Qashqai[59], Kia Sportage[60] and Vauxhall Corsa[61] are still performing strongly, but they are increasingly having to share space with newer entrants that barely existed in the market a year or two ago.

March confirms that Chinese brands are no longer a niche addition to the UK market.

They are now a structural force within it, and established brands are being squeezed as a result.

References

1. ^ BYD (www.thecarexpert.co.uk)
2. ^ Chery (www.thecarexpert.co.uk)
3. ^ Jaecoo (www.thecarexpert.co.uk)
4. ^ Omoda (www.thecarexpert.co.uk)
5. ^ Volkswagen (www.thecarexpert.co.uk)
6. ^ Alpine (www.thecarexpert.co.uk)
7. ^ BYD (www.thecarexpert.co.uk)
8. ^ Citro?n (www.thecarexpert.co.uk)
9. ^ Cupra (www.thecarexpert.co.uk)
10. ^ GWM (www.thecarexpert.co.uk)
11. ^ Jaecoo (www.thecarexpert.co.uk)
12. ^ Leapmotor (www.thecarexpert.co.uk)
13. ^ Mini (www.thecarexpert.co.uk)
14. ^ Omoda (www.thecarexpert.co.uk)
15. ^ Smart (www.thecarexpert.co.uk)
16. ^ Suzuki (www.thecarexpert.co.uk)
17. ^ Tesla (www.thecarexpert.co.uk)
18. ^ Xpeng (www.thecarexpert.co.uk)
19. ^ Abarth (www.thecarexpert.co.uk)
20. ^ Alfa Romeo (www.thecarexpert.co.uk)
21. ^ Chevrolet (www.thecarexpert.co.uk)
22. ^ Dacia (www.thecarexpert.co.uk)
23. ^ DS Automobiles (www.thecarexpert.co.uk)
24. ^ Fiat (www.thecarexpert.co.uk)
25. ^ Ford (www.thecarexpert.co.uk)
26. ^ Genesis (www.thecarexpert.co.uk)
27. ^ Honda (www.thecarexpert.co.uk)
28. ^ KGM (www.thecarexpert.co.uk)
29. ^ Lotus (www.thecarexpert.co.uk)
30. ^ Maserati (www.thecarexpert.co.uk)
31. ^ Mazda (www.thecarexpert.co.uk)
32. ^ Mercedes-Benz (www.thecarexpert.co.uk)
33. ^ Nissan (www.thecarexpert.co.uk)
34. ^ Peugeot (www.thecarexpert.co.uk)
35. ^ Porsche (www.thecarexpert.co.uk)
36. ^ SEAT (www.thecarexpert.co.uk)
37. ^ Skywell (www.thecarexpert.co.uk)
38. ^ Subaru (www.thecarexpert.co.uk)
39. ^ Toyota (www.thecarexpert.co.uk)
40. ^ Volkswagen (www.thecarexpert.co.uk)
41. ^ Audi (www.thecarexpert.co.uk)
42. ^ BMW (www.thecarexpert.co.uk)
43. ^ Hyundai (www.thecarexpert.co.uk)
44. ^ Jeep (www.thecarexpert.co.uk)
45. ^ Kia (www.thecarexpert.co.uk)
46. ^ Land Rover (www.thecarexpert.co.uk)
47. ^ Lexus (www.thecarexpert.co.uk)
48. ^ Polestar (www.thecarexpert.co.uk)
49. ^ Renault (www.thecarexpert.co.uk)
50. ^ Skoda (www.thecarexpert.co.uk)
51. ^ Vauxhall (www.thecarexpert.co.uk)
52. ^ Changan (www.thecarexpert.co.uk)
53. ^ Chery (www.thecarexpert.co.uk)
54. ^ Geely (www.thecarexpert.co.uk)
55. ^ Jaguar (www.thecarexpert.co.uk)
56. ^ Jaecoo 7 (www.thecarexpert.co.uk)
57. ^ MG HS (www.thecarexpert.co.uk)
58. ^ Ford Puma (www.thecarexpert.co.uk)
59. ^ Nissan Qashqai (www.thecarexpert.co.uk)
60. ^ Kia Sportage (www.thecarexpert.co.uk)
61. ^ Vauxhall Corsa (www.thecarexpert.co.uk)