Chinese car makers plant flag atop UK plug-in hybrid market

Chinese car makers have broken the stranglehold of Volkswagen, Ford and the premium brands on the booming UK plug-in hybrid market, taking the top two positions in May. The BYD Seal U took the top spot with 1576 sales, followed by the Jaecoo 7 with 1346 sales, according to figures from market analyst Jato Dynamics. The Volkswagen Tiguan was third, followed by the Ford Kuga and Range Rover Sport. The situation in the UK is being played out across Europe, where sales of Chinese PHEVs rose 421% to 30,400 in the first four months of the year, giving them an 8.3% of the PHEV market, Jato has revealed. The growth of the Chinese is even more remarkable when you consider how few models they actually offer. More than half of those sales came from the Seal U, a fifth came from the MG HS SUV and 16% came from the 7, according to Jato. (Sales of the Geely-owned Lynk&Co 01 SUV, a pioneer in the segment, have however tumbled as the brand reassesses its model plan.) China now has a greater share of the PHEV market than it does of the EV market in Europe, as makers diversify in response to the tariffs on Chinese-made electric cars. PHEVs aren't hit by those tariffs. “They are trying to offset the drops from their BEV models in Europe with these powertrains, which are equally competitive,” Jato global automotive analyst Felipe Munoz told Autocar. Chinese cars, along with new models from the Volkswagen Group, are driving growth of PHEVs across Europe, according to data from the bank UBS. The UK was the second largest PHEV market in Europe in May, after Germany, with sales up 51% to hit 17,899 for a 12% share, UBS figures show. German PHEV sales rose by a similar percentage to reach just over 25,000, while in Spain PHEV sales climbed 66% to 12,896 and in Italy they rose 52% to 8953. France was unique among the big five European markets in recording a fall in PHEV sales, after tax concessions were removed at the start of the year. “May was a month with strong momentum for Chinese brands,” UBS analyst Patrick Hummel said, noting their strong PHEV sales. “They’re no longer negligible in the competitive landscape.” For a long time, PHEVs were the preserve of premium brands, with contribution from the Volkswagen Group for larger models. Volkswagen, BMW and Land Rover were still the three biggest PHEV brands in the UK in May, according to SMMT figures. However, the Chinese have won over a more cost conscious buyer with a combination of keen pricing, long electric-only range and generous standard equipment. The Seal U, for example, starts at £33,315 with an official EV range of 50 miles. The 7 costs from £35,165 with a 56-mile EV range. Both are beaten by the HS, which costs from £31,995 with a 75-mile EV range. By contrast, the cheapest Tiguan PHEV (also with a 75-mile EV range) costs 35% more, at £42,665. The low official CO2 emissions figures of Chinese PHEVs gives them lower BIK tax ratings and thus makes them more appealing to fleet drivers. The UK's PHEV market was 70% fleet in May, SMMT figures show. More Chinese PHEVs are on the way. BYD has said it will add another two models to its European line-up; one of them is expected to be the new Seal 06 estate, revealed at the Shanghai motor show in April. Jaecoo owner Chery meanwhile has promised a slew of new PHEV models as it looks to pull a lead in the segment across Europe as part of a broader move away from pure-ICE models. Already confirmed for the UK is a PHEV version of the current Omoda 5, as well the larger upcoming Omoda 7. The Omoda 9 PHEV has already gone on sale. Between now and the first half of 2026, Chery will also launch models in its Tiggo SUV range in the UK, including PHEVs, as well as the new Lepas budget SUV brand. These use the T1X platform that incorporates the Chery Super Hybrid drivetrain. The forthcoming Freelander PHEV SUV, developed in conjunction with JLR, will also be T1X-based. The sharp growth of PHEV sales marks a remarkable reversal of fortune for the drivetrain, which has come under scrutiny by the EU for the wide discrepancy between lab-created CO2 figures and real-world usage. The drivetrain has been mocked by green groups for creating ‘fake electric cars’ chosen for their tax benefits rather than fuel savings, with their owners being under no obligation to plug them in. New rules governing the so-called ‘utility factor’ in the WLTP emissions testing however has forced car makers to increase the battery size to stretch the EV range. Meanwhile, feverish competition in China, along with a supply chain estimated to be around 30-40% cheaper than that in Europe, has vastly improved the electric driveability. For example, the electric motor in the HS is rated at 209bhp, higher than 1.5-litre petrol engine at 143bhp, encouraging drivers to use the engine as a range-extender back-up only. The Chinese have more up their sleeves. BYD is working on a range of new PHEVs with around 200km (124 miles) of EV range and the ability to rapid-charge at speeds of more than 150kW. Geely's Zeekr meanwhile has rolled out its so-called super electric hybrid technology on its new 9X large SUV, with 900V electricals promising ultra-fast charging of batteries up to 80kWh in capacity. On the battery front, Chinese battery giant CATL has developed low-cost sodium cells specifically for PHEVs and range-extender EVs, bringing fast charging and better low-temperature performance. Those signed up to the so-called Freevoy battery include Li Auto, Geely and Chery, CATL has said. The hope is that the PHEV drivetrain redeems itself to the point it becomes the saviour of the combustion engine. “PHEV has become the new battleground,” BYD's special advisor for Europe, Alfredo Altavilla, told Autocar recently. “Everybody is shooting for a revision of the so-called green deal that will open up markets also beyond 2035.” The danger in the short term is that the EU clocks the sharp rise in PHEVs from China and envelops them into the EV tariffs. “The question is how long will the EU wait to impose tariffs on these cars too,” Jato’s Munoz said. “Or have the Chinese makers learnt the lesson to go more gradually?"

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Chinese car makers plant flag atop UK plug-in hybrid market

The BYD Seal U and Jaecoo 7 SUVs took the top two spots in the UK's PHEV sales chart last month

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Chinese car makers plant flag atop UK plug-in hybrid market

The BYD Seal U and Jaecoo 7 SUVs took the top two spots in the UK's PHEV sales chart last month

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