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Is China the dominant EV force after a positive May 2025 for Electric Cars?
The UK’s new car industry returned to positive health in May with the SMMT reporting the fleet drive making the registration volume rise (at a rate of 1.6%) year on year. While continuing to affirm their messages that the Government needs to reduce VAT on EV purchases for consumers and address VAT on public charging, there are recognitions that BEV uptake is continuing.
As per the SMMT report we saw 150,000 registrations with 32,738 BEVs forming part of this. What this means is that some 21.8% of the vehicles registered were all-electric, which is a 25% improvement on last year (2024). The reality is that manufacturers are still falling behind the mandate of 28% zero-emission for 2025 which the Government has now set in stone.
Whether this will lead to a) significant discounting in Q4 2025 on all-electric cars; or b) Government relaxing the rules and penalties, is yet to be confirmed. This underpins the argument that VAT reductions for EVs would allow for manufacturers to sell sustainably, without distressing their product, could actually occur.
The growth in sales is also bringing with it a new quandary on a more geo-political and economic scale. Specifically, we are now witnessing an increase in volume from Chinese brands, like the BYD group, which are purportedly supported by their own Government to grow and ultimately distort European markets and brands.
This is why the US and EU acted via import tariffs, to ensure domestic products were protected. However, you will see on the SMMT that the BYD team are not relenting with their enthusiasms. Some 14,807 BYD vehicles have been registered in the UK in 2025 so far, giving them a 1.74% market share. Other niche brands like GWM, Jaecoo, KGM, Omoda, Skywell and Xpeng are also forming part of our demographic too. This is not going unnoticed.
In a recent BBC article questions have been raised about the apparent success and impact of these emerging brands like the BYD with their new Dolphin Surf, which is now launching in the UK with a truly affordable price tag.
With their head of sales promising to make BYD the number one in the UK within 10 years, the Chinese conglomerate are not stepping down anytime soon. Success is so apparent that existing European brands may be wiped out, if there is no ability to match the economies of sale and battery technology.
As the Chinese market is more developed and mature, along with heightened competition through state-led funding, the brands over there are progressing more furtively.
More EVs are purchased in China than anywhere else in the world. Security concerns are now starting to emerge with allegations of spyware, hacking and monitoring via these vehicles. Remote controlled and able to monitor driver journeys (inside and outside the vehicle) even the UK Government has to consider how far it will permit this possible cultural change.
However, it isn’t correct to say that European brands are giving up. The German pioneers Mercedes are now launching an intelligent and game-changing product in the form of the CLA EV to revolutionise their current line-up.
Admittedly the Merc team have produced an array of winners and losers, with the EQA and EQB SUV reflecting what UK consumers and businesses really wants. The EQE and EQS less so really. However, the CLA, a true favourite in combustion and plug-in format, is now arriving in the form of lithium-ion batteries.
Described as the “most intelligent car produced” by their team the CLA can be built according to your requirements and specification on the Mercedes website.
While launching with the 250+ 2WD initially, the 350 4MATIC will follow in August 2025, to ensure a good choice of battery options are available. Taking the EQ technology Sport Edition as an example, this can be ordered in Alpine Grey, Patagonia Red, Cosmos Black, Sapphire Blue, Polar White and Night Black.
As standard it includes the illuminated Mercedes star, panoramic glass roof, animated grille, 4-way lumbar support, MBUX navigation, driver display, heated front seats, LED high performance lights, climate control, video camera inside, 18” alloys, comfort seats, leather steering wheel, heat pump, smartphone integration, reversing camera, parktronic plus and comfort suspension. All of this for £46,330.
Just head to our dedicated Mercedes CLA deals section, or just get in touch with our team on 01942 910 001 or by emailing us at [email protected]
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