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.
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