BYD Drives UK EV Market Growth with 880% Sales Surge Amidst Favorable Tariff Landscape
Key Insights
Chinese EV manufacturer BYD reported an astounding 880% year-on-year sales increase in the UK for September, establishing it as the company's largest market outside China.
The UK's absence of tariffs on Chinese electric vehicles, a stark contrast to the EU and US, significantly contributes to its appeal for manufacturers like BYD.
Overall UK electric vehicle sales reached record highs in September, with both battery electric and plug-in hybrid registrations surging, though internal combustion engines still dominate new car sales.
Germany also experienced a 32% year-on-year rise in EV sales for September, yet market analysts express caution regarding the long-term growth trajectory against earlier forecasts.
Chinese electric vehicle (EV) giant BYD has announced an extraordinary 880% surge in its UK sales for September compared to the previous year, positioning the United Kingdom as its largest market outside of China. The company sold 11,271 vehicles in the UK last month, with the plug-in hybrid variant of its Seal U sports utility vehicle (SUV) leading the sales charge. This significant growth has propelled BYD's share of the UK market to 3.6% in September.
The UK's attractiveness to manufacturers like BYD is notably amplified by its current policy landscape. Unlike major economic blocs such as the European Union and the United States, the UK has not imposed tariffs on Chinese EV imports. This provides a crucial competitive advantage for BYD, which offers more cost-effective models compared to many Western rivals, enabling greater market penetration and consumer appeal.
The broader UK EV market also demonstrated robust growth, with figures from the Society of Motor Manufacturers and Traders (SMMT) indicating record-high electric vehicle sales in September. Pure battery electric vehicle registrations climbed to nearly 73,000 units, while plug-in hybrid sales experienced even faster growth. Despite this surge, petrol and diesel vehicles collectively still accounted for over half of all new car sales last month, highlighting the ongoing transition.
In Germany, the electric vehicle sector also saw a substantial uptick, with approximately 45,500 electric cars newly registered in September, representing 19.3% of overall sales. This marks a 32% increase compared to September 2024. However, Constantin Gall from consultants EY offered a cautious perspective, noting that while the growth rates are impressive, the overall sales volume remains significantly below original forecasts. He attributed the current growth largely to a market collapse in the previous year, suggesting that broader economic stagnation in Germany continues to temper a sustained recovery in new car sales.
BYD's UK manager, Bono Ge, expressed optimism about the brand's future in Britain, citing the recent opening of its 100th retail outlet and plans to launch additional hybrid and electric models in the coming months. This expansion strategy contrasts sharply with the challenges faced by Chinese EV makers in the EU and US, where tariffs of up to 45% have been implemented or maintained to protect domestic industries from perceived unfair state subsidies, effectively limiting their market access.