Chinese giant BYD is dramatically growing its share of the British car market as sales of electric vehicles (EVs) pick up.
The company – which sells EVs and hybrids – sold 1,759 vehicles in August, up from 438 during the same month last year.
During the first eight months of 2025 sales jumped from 4,110 to 24,333 to take its market share from about 0.3pc to 1.9pc, according to the Society of Motor Manufacturers and Traders (SMMT).
The surge came as sales of electric cars grew by 29.5pc in August, bucking an overall decline in the market of 2pc led by falling petrol and diesel car sales.
On Thursday the SMMT cautioned that August was usually a quieter month for sales due to number plate changes that occur in September.
But the lobby group said EV sales were also being boosted by a wider range of models, heavy discounting by manufacturers and the launch of the Government’s new grant scheme.
Many drivers remain wary of switching to EVs because of their steeper upfront cost, at around £48,000 on average compared to about £22,000 for petrol cars, according to the Electric Car Scheme.
However, Chinese manufacturers have sought to exploit this opportunity by offering some of the lowest-priced EVs on the market, posing a major challenge to brands such as Ford, Volkswagen and Fiat that have traditionally offered budget-friendly cars to the masses.
For example, while Ford’s cheapest new car offering, the Puma, currently starts at around £29,000 before grants, BYD’s Dolphin Surf starts at just under £19,000.
At the same time, experts say Chinese brands – previously viewed with suspicion by consumers – are surprising many drivers with plush-looking interiors and impressive technology offerings.
Tanya Sinclair, the chief executive of Electric Vehicles UK, said: “UK motorists are discerning consumers.
“They want the best possible combination of value, tech and quality in an electric vehicle.
“Today, it’s not only legacy manufacturers who can deliver this.
“BYD, along with countless other emerging brands, are providing drivers with an unprecedented choice of EVs at all price points.”
BYD – which stands for “Build Your Dreams” – overtook Tesla in 2024 to become the biggest seller of EVs globally.
It first began selling cars in the UK in March 2023 and executives have sought to build its profile – for example, by sponsoring the Uefa Euro football tournament in 2024.
The company’s UK sales remain dwarfed by more established European brands such as Volkswagen and BMW, which have sold 78,987 and 115,474 cars respectively this year.
But its growth in just 29 months underscores the way in which the car market is being shaken up by challenger brands as traditional marques struggle with the transition to EVs.
Many of Europe’s biggest carmakers are being squeezed out of the market in China, where more than half of all sales are now electric and brands are competing on price.
In the UK, the SMMT said the car market saw sales fall 2pc overall to 82,908 in August.
That was led by a 14.2pc drop in petrol car sales and a 16.6pc drop for diesels.
Along with the 29.5pc rise in EV sales, plug-in hybrids were another bright spot rising 69.4pc. However, sales of these remained smaller than EVs overall, at 9,803 compared to 21,969 for the month.
Mike Hawes, the chief executive of the SMMT, said: “August was the best month yet this year for EV market share and – while it is often volatile due to low overall volumes – the overall trend is positive.
“September will be critical with the new number plate factor typically driving around one in seven new car registrations for the year.
“There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric.
“With more models being added to the Government’s electric car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”