Chinese cars reach one in five UK new car sales as manufacturers cut jobs

Britain's car industry is under growing pressure from Chinese electric and hybrid vehicles, as cheap, high-spec models win a bigger share of the market while UK manufacturers cut jobs.

One in five new cars on British roads is now Chinese. The popularity of these cars has been driven by low prices and, unlike in Europe, the absence of tariffs in the UK. A clear example is the Jaecoo 7, a model that has become one of Britain's best-selling cars even though many drivers may not know the name. It has been nicknamed the Temu Range Rover, although it has no link to either Temu or Range Rover. It is Chinese, cheap and closely resembles a more expensive British rival.

Jaecoo is one of four brands launched in the UK in the past two years by the state-owned Chery Group. The company's UK boss rejected the idea that this is an overnight success, saying Chery had prepared for the UK entry for more than 20 years. He described Britain as a mature and sophisticated market and said the group would comply fully with local requirements. He also dismissed wider security and privacy concerns about Chinese technology, pointing to Chery's overseas business in around 100 countries over more than 20 years.

For British manufacturers, Chinese competition is the latest problem. They are already dealing with rising costs, the shift to electrification and American tariffs. Last month Britain's biggest manufacturer, Jaguar Land Rover, announced 4,000 job losses. An industry body called it an ominous sign and said conditions for the European and UK sector were probably the toughest it had ever faced. The competition has been good for consumers, increasing the number of models and brands and helping to drive down prices. For manufacturers, the question is whether they can compete.

There is one part of the UK car industry that still performs strongly, although its customer base is much narrower. Bentley has sold cars in Berkeley Square for almost 100 years. Its newest model, the Torqual, is its first fully electric car, with prices starting at £175,000. The car is British made in Crewe, but the battery is not. It uses a mixture of Korean technology and is assembled in Europe. Bentley says the Britishness of the car comes from its surroundings: the leather work, the stitching and the detailing. The company is German owned and run, but its boss says brand Britain remains strong at the top end. He said people around the world look for a British car, comparing it to a Swiss watch that comes with the place where it is built.

That heritage may help sell cars to the super rich. The wider British car industry remains at a crossroads. Thousands of jobs may depend on keeping up with China.