The UK’s new car market has smashed through one million sales in the first half of 2025, but the landscape is changing faster than ever. Figures from car data analysts CAP paints a picture of a sector in flux, where new Chinese brands are piling pressure on established players, electric cars are grabbing a bigger market share, and used EV values remain in a dramatic slide that’s costing the industry millions.
The big news is that CAP’s latest figures show Chinese carmakers accelerating into the UK mainstream. MG leads the pack with 42,617 new registrations so far this year, followed by BYD (19,390 units), Jaecoo (8,399), and Omoda (6,941). And there’s no slowdown in sight, with Chery and Changan entering UK showrooms this month and whispers of more brands waiting in the wings.
These brands are rolling in with well-equipped EVs at prices that often undercut European and Japanese rivals, prompting CAP to warn that Chinese carmakers ‘will upset an already unstable market.’ For price-conscious buyers, this new wave of competition could be a game changer.
Buyers move away from petrol and diesel
In the first six months of 2025, total new car registrations stand at 1,042,219 units. Petrol still accounts for the biggest slice of the market but has slipped to 48.5%, down from 55.4% in the same period in 2024. Diesel continues its retreat, now standing at just 5.6%.
Electric vehicles (EVs) have grown to 21.6% of new car sales, up from 16.6% in 2024, while hybrids have nudged up to a combined 24.4%. It’s clear buyers are moving steadily away from pure combustion engines, but the road to full electrification remains anything but smooth.
Used EV prices still in freefall
The new car market may be evolving, but the used market is where some of the biggest shockwaves are felt, especially for electric vehicles. CAP reveals EV values have plummeted nearly 69.7% since September 2022, leaving a glut of used EVs at jaw-dropping discounts.
Take the now-discontinued Fisker Ocean, for example, where the battery pack alone is now worth more than the entire car on the used market. Or the Jaguar I-Pace, which suffers a £16,800 hit versus a petrol F-Pace on three-year-old examples, a staggering 48.8% drop. Even more mainstream fare, like the Vauxhall Mokka-e, sees a £3,400 discount compared with its petrol sibling.
While these collapsing values spell pain for the industry, CAP insists there are, ‘great used EV buys to be had’ for savvy consumers, and we’d agree. Meanwhile, average used car prices dropped a modest 0.6% between June and July, suggesting some stability away from electric cars.
What this means for you
If you’re in the market for a new car, there’s never been more choice – and more confusion. Chinese brands are bringing well-specced EVs to market at prices that undercut familiar names. That’s good news for your wallet, but it’s wise to research these newcomers carefully, from warranty support to resale values. Parkers is a good place for that.
For used car buyers, especially those curious about going electric, this could be a golden moment. Used EVs have fallen off a cliff price-wise. That Jaguar I-Pace you were eyeing might now fit the budget, provided you’re comfortable with battery health checks and potentially higher insurance costs.
Petrol and hybrid buyers will find a steadier market, though bargains are less dramatic. And if you’re looking for a used van, the story’s less rosy, with weak demand for EVs and overall prices trending down gently.
Editor’s View: We are seeing a seismic shift towards Chinese cars
It’s no exaggeration to say the UK car market is undergoing one of its biggest shake-ups in decades. The arrival of Chinese brands is arguably the biggest disruptor since the Japanese invasion of the 1970s and 1980s, except this time it’s happening at lightning speed, powered by EV tech and aggressive pricing.
Back in the early 1970s we saw something similar with the arrival – at scale – of the Japanese carmakers. Between 1970 and 1973 they went from nowhere to taking 15% of the market. At that point the government stepped in and capped the sale of Japanese cars here to protect the local industry. Will it happen again, or does it not matter that we don’t have an equivalent domestic volume car making industry anymore? We’ll see.
Meanwhile, the used EV market is like a roller coaster that’s yet to find the brakes. For buyers, that means bargains aplenty, but also big risks if you don’t do your homework. My advice is the same as ever: keep your eyes open, do the sums carefully, and don’t be swayed by shiny screens and clever adverts alone. The deals are out there – but so are the pitfalls.
Keith Adams – Parkers Editor
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