The UK car market saw a significant shift in July, with data from the British Society of Motor Manufacturers and Traders (SMMT) revealing that new car registrations reached 156,571 units, a year-on-year increase of 11.7%. This marks the best performance since 2019 and the eighth consecutive month of market growth.
Electric vehicles were the primary driver of this expansion. Sales of plug-in hybrid vehicles rose by 33.6%, capturing a 14.9% market share, while hybrid vehicle sales grew by 11.6%, holding a 13.2% share. Pure battery electric vehicles (BEVs) saw a notable surge of 44.5% in sales year-on-year, achieving a 27.5% market share and setting a new sales record.
Among the top ten best-selling models, three were from Chinese automakers: the JAECOO 7 (2,709 units) and JAECOO 5 (2,481 units) under Chery, and the MG HS (2,703 units) from SAIC Motor. These three models collectively sold 7,893 units, accounting for over 5% of the total market share. JAECOO, Chery's overseas brand, entered the UK market in 2025 and is often described as a "budget-friendly Range Rover," priced at around £30,000. In March 2026, the JAECOO 7 achieved its first monthly sales crown in the UK with 10,064 units sold, accumulating total sales of 41,952 units by the end of March. During the first half of 2026, it sold 23,840 units, becoming the third best-selling model, surpassing long-established brands like Honda and Citroën.
The MG HS, a long-time favorite in the UK market, has frequently appeared on best-selling lists. Chinese automakers are steadily increasing their market share across Europe. In May 2026, five Chinese car companies—BYD, SAIC, Geely, Chery, and Leapmotor—sold a total of 138,410 vehicles in 31 European countries, up 65% year-on-year, surpassing Japanese brands for the first time. Japanese brands sold 130,400 units in May, a decline of 3% year-on-year. In June, Chinese automakers extended their lead, with the gap widening from approximately 8,000 units to about 13,000 units. In the first half of 2026, Chinese new energy vehicle sales in the UK reached 183,000 units, a year-on-year increase of over 110%, lifting their market share to 16.1%. The MG brand sold over 190,000 vehicles in Europe during the first half of the year, up more than 20% year-on-year. BYD reported overseas passenger car sales of 789,367 units from January to June 2026, a 70% increase from the same period last year. Chairman Wang Chuanfu forecasts that total overseas sales for 2026 will exceed 1.6 million units, more than 1.5 times the 1.04 million units sold in 2025.
Mike Hawes, Chief Executive of the SMMT, commented that the record-breaking sales of electric vehicles in July was a remarkable achievement. However, he cautioned that if automakers continue to rely on heavy discounts to avoid stricter penalties and distort market demand, the progress may be unsustainable. He warned that the underlying demand in the UK car market has not kept pace, and that a sustainable transition cannot be achieved through forced supply alone. Urgent reforms to the regulatory framework are needed; otherwise, the UK risks weakening its competitiveness and endangering jobs and livelihoods.
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