If there’s one clear thing about the automotive sector today, it’s that everything remains uncertain. The electric vehicle transformation has significantly shaken up the marketplace, and now international trade tariffs present obstacles that might threaten the very existence of certain businesses.
Before the tariff conflicts began, one of the major challenges faced by European and American car manufacturers was the steady growth of Chinese electric vehicle companies. Both the EU and the US responded with protective measures, yet one nation chose not to do so; instead, this country is emerging as an enticing marketplace: the UK.
Chinese vehicles aren’t commonly seen on American roads, and not many Chinese firms are considering introducing electric vehicles to the U.S. marketplace. President Joe Biden has imposed a full 100% tariff on imported Chinese electric cars as of 2024, coupled with extra levies introduced under the previous Trump administration. These measures have effectively closed off the U.S. automotive sector to new entrants without domestic manufacturing facilities. This situation seems set to persist for some time ahead.
Europe has proven to be a more favorable market for Chinese-owned carmakers, with companies like BYD, MG, Geely’s Polestar, Zeekr, Lynk & Co, along with Nio, XPeng, Aiways, Chery, and Great Wall Motors all entering the European Union. Recognizing the threat posed to local electric vehicle initiatives, Europe introduced additional import duties—up to 35.3%, atop the standard 10%—on vehicles from China, attributing these levies partly due to government subsidies deemed unfair competition. Despite reducing their ardor somewhat, this did not extinguish their ambitions entirely. Tariff rates fluctuate based on the extent of subsidies; thus, state-run enterprises such as SAIC face higher taxes at 35.3%, whereas private firms like BYD encounter lower ones at around 17%. Additionally, hybrid models were exempted from these increased tariffs, prompting Chinese producers to pivot towards developing hybrids within the EU marketplace.
European EV opportunities
Norway has served as Europe’s model for electric vehicle uptake, with 84.1% of March 2025 sales comprising solely battery electric vehicles (BEVs). When combined with other plug-in models (mostly plugin hybrid electric vehicles), this percentage rose to 93.2%. However, Norway remains a smaller nation with a populace of 5.57 million people and only 128,691 new passenger cars registered in 2024. Despite their significantly lower BEV market share, both France and Germany present more profitable opportunities due to their substantially greater populations. Yet in 2024, the situation showed some different trends.
The U.K. emerged as Europe’s leading BEV market.
With 381,970 units sold, it surpassed both France (291,143) and Germany (380,609). Despite direct subsidies ceasing a few years ago in Britain, this achievement was still reached.
Zeekr, a subsidiary of the large corporation Geely from China, originally showed hesitation towards entering the UK market and instead concentrated on smaller markets known for their significant electric vehicle sales. “Our initial focus when launching in our first markets—Norway, Sweden, and the Netherlands—was to solidify our brand presence,” explains Lothar Schupet, Acting CEO of Zeekr Europe. “We selected these small but highly receptive EV markets. The plan was then to expand into larger ones once we gained insight into consumer preferences. Countries like Germany, the UK, and France represent major European markets; failing here could significantly damage public confidence due to their sizable populations.”
In recent years, Chinese electric vehicle brands have typically debuted in Norway before expanding elsewhere. However, there has been a noticeable increase in their popularity in the UK as well. One standout example is MG, an auto marque owned by China’s massive SAIC Motor Corporation yet steeped in British tradition. This brand has performed remarkably well, particularly due to its battery-electric vehicles (BEVs). In March 2025, they secured a steady 4% share of the UK market, rivaling established manufacturers such as Ford and Mercedes-Benz with models like the MG4 leading the charge.
Nevertheless, BYD has made further advances, capturing 5% of the U.K. market since entering the country in March 2023.
BYD began marketing its products in Europe towards the end of 2022.
Indeed, BYD managed to sell more vehicles in March 2025 alone than they did throughout all of 2024. This trend seems poised to continue upward since the brand was previously missing what had been a highly sought-after model type within their electric vehicle lineup: an intermediate-sized sport utility vehicle. Recently, though, BYD introduced the Sealion 7 into this segment; however, its pricing places it directly in competition with Tesla’s dominant Model Y offering.
XPeng, another Chinese car manufacturer, demonstrated minimal interest in entering the UK market when it first expanded into Europe in 2021, beginning instead with Norway. However, the company introduced its G6 SUV to the UK in February 2025. This model serves as competition for the Model Y but comes at a price point lower than the comparable Tesla vehicle.
Leapmotor presents a somewhat distinct offering. Even though the vehicles available in Europe are made in China, the
A European entity has 51% of its ownership held by Stellantis.
The large European automaker previously produced its budget-friendly Leapmotor T03 model in Tychy, Poland; however, they stopped production by late March. According to Stellantis, “Although the firm continues to actively promote Leapmotor cars within Europe, it is currently exploring various production alternatives.” Some speculations suggest that this choice might have been swayed by Poland backing higher import duties imposed by the EU on electric vehicles originating from China. In contrast, Spain, where such tariff hikes were not supported, may become home to the upcoming assembly line for Leapmotor’s new B10 vehicle. Nonetheless, these developments do not impact the U.K., since both the right-hand drive version of the T03 and the C10 models have consistently been imported directly from China into Britain, with plans remaining unchanged for future supply.
More electric vehicle brands from China are heading to the U.K.
As the importance of the U.K. market increases, Zeekr is becoming clearer regarding its intentions to enter that region. “Clearly, we must focus on developing vehicles for right-hand driving,” states Schupet. “However, since we’ve already done this in countries like Malaysia, Singapore, and Australia, we’re off to a good start.” The opportunity looks promising as the U.K. won’t impose European-style tariffs, adding extra potential for growth. Nonetheless, this comes with some risks due to intense rivalry. All parties involved understand how lucrative the U.K. market can be.
Just about the same time that BYD introduced the Sealion 7 and Zeekr with its 7X (another midsize SUV), yet another major player from China entered the European market and also began operations in the U.K. Back in the 1950s, when car manufacturing started in China under a slightly different corporate identity, this pioneering firm was known as Changan. Now, they’re debuting three distinct labels across Europe: Deepal for mainstream appeal, Changan itself, and an upscale brand named Avatr aimed at the luxury segment.
The first car to reach the UK will be the Deepal S07.
As expected, this model falls into the category of midsize SUVs alongside vehicles like the Tesla Model Y. “The U.K. represents a growing market for electric vehicles,” remarks Bertrand Bach, who serves as the global design director at Changan. “While we’re rolling out our offerings throughout Europe, the U.K. holds significant importance within these plans.”
Zeekr has announced that they plan to enter the U.K. market within “the next 18 months,” implying a deadline sometime before the close of 2026. According to Schupet, “Our aim is not merely to become another brand originating from China entering the British market.” He adds, “While our pricing and overall offering have strong appeal due to superior construction standards, many buyers still perceive us as yet another new entrant from China. Nonetheless, under the umbrella of the Geely Group—which includes brands like Volvo, Polestar, and Lotus—we possess extensive insights into European consumer preferences.”
Schupet further elaborates, stating, “The development process for Zeekr vehicles involves collaboration across continents; specifically, these efforts take place in Gothenburg with an eye toward meeting European tastes and needs.”
Changan also operates a design center in Turin, established back in 2006 well ahead of the firm introducing its brands to Europe. According to Bach, “The Deepal S07 was crafted in Europe with an eye toward appealing specifically to European consumers,” adding, “it embodies a distinctly European ethos.” He emphasizes, “We understand that designing a vehicle for Chinese purchasers won’t necessarily resonate with European clientele.” For instance, Bach notes that the S07 model available in Europe boasts a more agile suspension system compared to its counterpart marketed in China.
The U.K. is becoming the preferred destination within Europe for Chinese car manufacturers. “Our enthusiasm about launching soon in the U.K. would not be so high if we did not perceive significant potential,” states Schupet. “There is a growing acceptance of electric vehicles. In 2024, the U.K. surpassed Germany by approximately 1,000 units. Additionally, it represents a premium segment. We aim to move swiftly to penetrate this promising U.K. market. We foresee immense opportunities.”
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