Chinese Brands Drive UK Car Market Growth in 2026
💡 Key Takeaway
September car sales rose 12% and Chinese brands are behind almost all of 2026's growth. What the shift means for UK car finance buyers.
The UK new car market is having a far better year than almost anyone predicted. 📈
And according to Autotrader, there's one clear reason why: Chinese car brands are responsible for virtually all of the growth in 2026.
With October's official figures due from the SMMT on Thursday 5 November, here's where things stand — and what it means if you're planning to buy on finance.
September: the strongest in nearly a decade
September is always a big month thanks to the new 76 plate, but 2026 delivered more than usual.
The SMMT recorded around 350,500 new car registrations, up roughly 12% on September 2025. That made it the strongest September since 2017 and extended the market's run of consecutive monthly growth.
Battery electric cars took around 28% of the month's sales, keeping EVs well above last year's levels.
The Jaecoo 7 takes the top spot
The headline grabber was the Jaecoo 7. It was the UK's best-selling car in September with 10,813 registrations, ahead of the Tesla Model 3 (9,929) and Ford Puma (6,958).
That's a remarkable result for a brand that only launched in Britain in early 2025.
Year to date, the Ford Puma still leads with 42,926 registrations, but the Jaecoo 7 is right behind on 39,473 — a gap of fewer than 3,500 cars. A genuine race for 2026's best-selling car is on. 🏁
The MG HS also sits sixth in the year-to-date chart, underlining how quickly Chinese-owned brands have moved into the mainstream.
"Virtually all the growth"
Speaking in October, Autotrader's head of strategy and insights Marc Palmer said the strength of the new car market has primarily been driven by Chinese brands.
His striking point: strip them out, and the rest of the new car market has been broadly flat in 2026.
Autotrader now forecasts around 10.17 million new and used car transactions this year — up 3.4% and the biggest market since 2019. It expects new car registrations of about 2.21 million, up 9.5%, with SMMT's own forecast slightly lower at around 2.18 million.
Who's buying — and how they're paying
This is where it gets interesting for finance. 💷
Autotrader says typical Chinese-brand buyers are younger, middle-income families, often with children at home. They tend to target monthly payments of £300–£400 — sitting between traditional volume brands and premium marques.
In other words, these buyers are shopping on the monthly figure, mostly through PCP. They're getting a lot of car — big SUVs, plug-in hybrid tech, long warranties — for a payment that used to buy a mid-spec hatchback.
Brand loyalty is fading too. Only around one in three drivers now returns to the same manufacturer, down from 40–50% historically. Buyers are making pragmatic, value-led choices.
What it means for you
1. Competition is pushing deals up
Established brands are under pressure to respond. Expect more deposit contributions, low-APR campaigns and 0% PCP offers, especially in the last two months of the year as makers chase registration and ZEV mandate targets.
2. Watch the residual values
On PCP, your monthly payment depends heavily on the Guaranteed Minimum Future Value (GMFV). Newer brands have less used-market history, so lenders may set more cautious residuals — or, in competitive campaigns, more generous ones. Compare carefully.
3. Diesel is fading fast
Autotrader reported diesel enquiries were down 19% year on year in September, with used diesels taking around 34 days to sell. If you're financing a diesel, factor in weaker future demand.
4. Year-end is a good time to buy
Dealers and manufacturers often push hard in November and December. If you're flexible on model, there are savings to be had.
The bottom line
2026 has become the year Chinese brands went mainstream in Britain. For buyers, that means more choice, sharper monthly payments and pressure on everyone else to keep up.
We'll be watching the October figures on 5 November to see if the Jaecoo 7 closes the gap on the Puma. 👀
Thinking about your next car?
At We Finance Your Asset, we help drivers in Reading, Berkshire and across the UK compare finance on any make or model — established favourite or new arrival.
Get in touch and we'll help you find a monthly payment that works for you. 🚗