The UK car market is increasingly contested, with the EU losing ground to Chinese exporters. Once dominant, the EU’s share of UK vehicle imports has fallen below 70%, down from 90% in the 2010s. Chinese automakers, benefiting from lower production costs and advanced technology, have surged, with exports to the UK rising over 80% in the first half of the year.
Germany, in particular, is struggling with a prolonged industrial downturn and fears deindustrialisation. The EU is pushing for UK tariffs to counter Chinese subsidies, while Britain weighs public sentiment—voters may favour cheaper, tech-heavy cars over protectionism. Meanwhile, UK car production has plummeted from 1.7 million in 2016 to 700,000 in 2025, though the industry focuses more on energy costs and green policy than shielding itself from competition.
The race is no longer just about vehicles—it’s about economic sovereignty, supply chain control, and the future of manufacturing.
Source: Financial Times Companies · Summarized by HeadlinesBriefing