Chinese car brands shift UK strategy from EVs to hybrids and petrol
Chinese manufacturers are expanding UK sales of plug-in hybrids and petrol models after using affordable EVs to enter the market, industry experts say, with internal combustion powertrains now dominating their line-ups.
Chinese car manufacturers have quietly shifted their UK strategy away from pure electric vehicles, with petrol and hybrid models now outselling their EVs, according to industry specialists who say the initial wave of low-cost electric cars served as a gateway for broader market entry.
Data covering seven Chinese brands selling at scale in the UK between 2024 and 2026 shows petrol accounted for 199,700 registrations, or 32.1% of their collective total, just ahead of EVs at 194,000 and 31.2%. Plug-in hybrids followed at 144,300 and 23.2%, while self-charging hybrids reached 83,700 and 13.5%. Powertrains involving internal combustion in some form made up 427,700 units, or 68.7% of the seven brands' combined sales.
A senior fleet industry source described the early EV push as a "Trojan Horse" that allowed new entrants to establish themselves before expanding into other powertrains. "Everybody's been worried about Chinese electric cars," the source told Autocar. "They haven't realised that China has developed the engines and the hybrid drivetrains at lightning speed, and they're now as good, if not better, than the Europeans."
The source added that Chinese brands initially planned to sell only EVs but have since recognised the appeal of plug-in hybrids, which are now arriving "in stunning numbers". Omoda and Jaecoo illustrate the trend: between 2024 and 2026, plug-in hybrids made up 43.2% of their powertrain mix and petrol 37.9%, while EVs accounted for just 15.7%. The Jaecoo 7, available with petrol and plug-in hybrid options, was the UK's third best-selling car year-to-date as of July, according to SMMT registration figures.
Philip Nothard, head of insight at Cox Automotive, said a softening of the UK's Zero Emission Vehicle Mandate could further benefit Chinese entrants. "The pending ZEV Mandate consultation could indirectly support Chinese new entrants even more, because any softening of it would allow them to go even harder and longer on plug-in hybrid and hybrid growth," he said. Nothard noted that Chinese manufacturers operate on much faster model cycles than established rivals, allowing them to react quickly to regulatory deadlines. "They can have a car on the road in 12 to 18 months," he said, "whereas the established manufacturers are thinking, 'To get where I need to be by 2030, I need to start building my production lines and supply chains today'."
The fleet source said other manufacturers have used similar tactics, offering desirable EV models to fleet customers only if they placed the full range on their choice lists. Fleets find EVs attractive because of low company car tax, but the source warned that plug-in hybrids will become significantly more expensive over time. Benefit-in-kind rates for EVs currently stand at 4%, rising gradually to 9% by 2029-2030, while all plug-in hybrids will be taxed at 19% that year. "When your tax can double, triple or quadruple, that's something that I think could be another kind of Dieselgate," the source said.
The European Union applies tariffs of up to 35.3% on Chinese EVs in addition to its standard 10% import duty and is reportedly considering similar measures for plug-in hybrids. Nothard argued the UK would struggle to follow suit because of Chinese investment in domestic manufacturing, pointing to Chery's role in safeguarding jobs at Nissan's Sunderland plant. "I think it'll be very difficult for the UK government to then sanction any kind of tariffs against the Chinese manufacturers," he said, "because they'll just go 'Okay we'll pull out of the R&D we've got here, and we'll pull out of Nissan – how do you want to play it?'"
