Jaecoo 7 is UK's favourite new car as sales of Chinese brands accelerate

The Chinese-owned Jaecoo 7 has emerged as the UK's most popular new car, eclipsing the Tesla Model 3 in sales. This remarkable rise for the Jaecoo 7 began in March 2022, though it had briefly been overtaken by competitors until September. Manufactured in China by Chery Automobile, the Jaecoo 7's boxy design and distinctive grille have become familiar sights on British roads.

Priced starting at around £30,000, it has earned the nickname "Temu Range Rover" on social media, comparing it favorably to the British luxury brand at a more affordable price point.

China has made significant progress in the UK car market, with Chinese brands including MG, BYD, and GWM together capturing 23 percent of the market in September. Although the first Chinese cars entered the UK market about 15 years ago, the growing popularity of electric vehicles has driven their increased popularity. The Jaecoo 7 is offered as a petrol or plug-in hybrid, with 10,813 new registrations in September alone.

Tesla's Model 3 came in second with 9,929 registrations, while the Ford Puma received 6,958 new registrations during the same period. Year-to-date, the Ford Puma remains ahead in the sales (42,926 registrations), followed by the Jaecoo 7 (39,473) and Kia Sportage (37,085). Electric vehicles accounted for a record 58.4 percent of new vehicle registrations in September, with 99,199 battery-electric vehicles (up 36.3 percent to a 28.3 percent market share) and 59,563 plug-in hybrids (up 55.7 percent) registered, in contrast to a 6.7 percent decline for petrol vehicles and an 11.5 percent increase for diesel cars. Hybrid vehicles (HEV) saw a 4.2 percent drop, down to 13.1 percent.

The surge in electric vehicle registrations in the UK is driven by unprecedented model choice, compelling discounts, and the government's Electric Car Grant, which offers £3,750 for new fully-electric passenger cars priced under £37,000. Since 2023, the number of BEV models on sale has more than doubled, reaching 178, alongside over 110 PHEV and 50 HEV models.

As a result, UK's electrified options now represent more than three-quarters of new cars available, despite representing only 26.2 percent of all registrations – significantly below the government's 2026 target of 33 percent. To meet this year's target, 265,000 additional BEV registrations are required in the final quarter, emphasizing the gap between targets and demand.

The Society of Motor Manufacturers and Traders (SMMT) noted that regulation needs to align more closely with market development to strengthen the UK's competitiveness, unlock new investments, support jobs, and create a sustainable market capable of delivering the necessary decarbonization. Despite the industry's commitment and billions of pounds invested in new models, technology, and incentives, uptake remains behind mandated targets.

The UK continues to face the world's toughest targets and highest energy costs compared to other nations.

Unlike in the European Union, Chinese EV imports in the UK do not face additional tariffs. Plug-in hybrids are not affected by trade levies but may soon face similar duties in the EU. Jaecoo and Omoda, owned by Chery, are exploring the possibility of assembling vehicles at Nissan's Sunderland factory, the UK's largest car plant, under a memorandum of understanding signed with Nissan.

Despite the potential tariffs challenge in the EU, Jaecoo's UK managing director Victor Zhang stated that the company is committed to remaining in the UK.