Why Chinese carmakers are miles ahead

From BYD to XPENG, Chinese carmakers are accelerating past the competition.

Rightly or wrongly, the words ‘Made in China’ haven’t historically inspired a lot of confidence.

But when it comes to cars, our perceptions are definitely shifting gear.

In recent years, we’ve seen BYD move from unknown underdog to global powerhouse. They’ve outsold Tesla in Europe as recently as 2024 and show no signs of hitting the brakes.

But when it comes to conquering the car market, we reckon China is only just getting started.

And BYD aren’t the only superstar carmaker worth watching. Say hello to the Chinese carmakers that are already going the extra mile:

• XPENG
• JAECOO
• OMODA
• Dongfeng
• GWM
• Li Auto
• Geely
• Leapmotor

But who are these exciting newcomers and why are they making our familiar carmakers nervous when it comes to EV innovation?

The underdog takes the lead

China’s automotive journey is giving us total tortoise and hare vibes.

While Western manufacturers like Ford, General Motors and Mercedes-Benz had factories in Shanghai in the early 20th century, China itself was slow to jump on the automotive bandwagon.

The second Sino-Japanese war and then the Cultural Revolution stalled early efforts to get it up and running.

So, it wasn’t until the 80s that things started to speed up.

Domestic production of private passenger cars was incredibly limited, but China imported a lot of cars from places like Japan and the USA.

So many, in fact, that it created a massive trade deficit. That’s when China decided to change direction.

Using partnerships with brands like Volkswagen and American Motors Corporation (AMC), it strengthened key local players like SAIC, Dongfeng and Changan.

While other countries cruised ahead confidently, China built domestic expertise and infrastructure at breakneck speed. 

From making a few hundred cars per year in the 1950s, to over two million by 2001.

That’s probably why China’s had the largest automotive industry globally since 2008.

And last year, the mainland became the biggest automotive market in the world in terms of sales and ownership. That’s bigger than Japan.

Even bigger than the USA.

Definitely bigger than the UK.

Fair to say if the automotive industry had a finish line, this tortoise would’ve already won the race.

Fortunately, there’s always room for new developments.

And the Chinese automotive industry is enjoying another leapfrog moment in the form of the electric vehicle (EV) revolution.

The great EV power shift

While big players like Toyota and Ford were still debating if EVs were a viable road forward, China was already building them.

Government policies drove early EV adoption from the 2010s, with heavy state investment in battery tech and charging infrastructure.

Pioneers like BYD took their cutting-edge battery expertise and applied it to the electric car market.

An absolutely genius move.

Because building batteries is a completely different skillset than building engines – and by hopping on EV adoption early, China pulled miles ahead.

Now it’s playing Uno-reverse on the joint ventures that helped them initially.

Manufacturers that once helped it start ramping up car production, are now looking to China for help with EV development. 

Case in point: the Tesla Model Y might’ve been the UK’s best-selling car in 2024, but there’s a hidden surprise under the bonnet (well, in the ‘frunk’).

The battery? Made and designed by BYD.

Now Ford, Renault, Stellantis, Jaguar Land Rover and others have all started new joint ventures to access Chinese tech and know-how.

But it’s not just better batteries that is making Chinese manufacturing attractive.

China is making cars that  boast trailblazing technology and EVs that have better batteries, while still being genuinely affordable to the masses. 

And that’s a hard package to resist, especially with the new luxury car tax hitting any vehicle over £40,000.

Here’s how the market is stacking up right now (comparing both electric and petrol models):

China is doing well at making their cars affordable, but familiar names like the MG4 and Renault 5 are following their example.

With carmakers recognising the increased need for economically priced EVs, we bet there’ll be more to come.

But trace the ownership of some of these well-known brands back and you’ll find Chinese ownership, or partnerships.

The new joint ventures aren’t to help China anymore – it’s to help those lagging behind to make better, more economical cars and EVs.

BYD and beyond

China isn’t just selling their expertise to manufacturers. It’s challenging them for pole position in the increasingly electric car market.

Chinese names and Chinese cars are going global.

We've been singing BYD's praises since they arrived in 2022. You've probably spotted their cars – the ATTO 3, DOLPHIN, and SEAL – making waves on high streets.

But they're not the only standout.

The 'big four' (Dongfeng, FAW, Changan, and SAIC) have deep roots in China's automotive industry. They're not exactly newcomers, but they may have stronger UK presence as China tackles the global market under their own badges.

SAIC currently only sells through its subsidiaries (MG and Maxus), but Dongfeng is selling its own name in the UK, and Changan launches later this year.

Chery established two new brands – JAECOO and OMODA – and they are selling like hot cakes on a cold day in the UK.

But the most exciting new brands to come out of China don’t consider themselves carmakers at all.

Take XPENG.

This start-up came to life in 2014 and though it has a wealth of automotive experience behind its founders, it defines itself as a tech company that just happens to make electric cars.

And to be fair, the technology on XPENG cars is innovative, to say the least.

With a big focus on self-driving cars, XPILOT tech uses a combo of lidar, radar and cameras for driver assistance. 

The XPENG G6 – an all-electric coupe SUV – launched here in March 2025 loaded with XPILOT ASSIST, along with all the comfort-features that come as standard.

Leapmotor has similar roots. Founded in 2015 by joint heads of a video surveillance tech company, one ongoing project involves integrating AI into all Leapmotor vehicles through their Lingxin 01 chip.

These new players position themselves as technological pioneers, not vehicle manufacturers.

They’re challenging established names, upending the status quo, and making all the big players we know and love just a little bit nervous.

Which Chinese carmakers sell in the UK now?

Probably more than you think.

BYD, XPENG, JAECOO, and OMODA have all reached our shores recently, with more set to follow.

But even brands not selling under their own name often have Chinese backing.

MG and Maxus are both SAIC-owned. While MG remains a British marque, it's no longer exclusively British.

Lotus, Volvo and Polestar are all Geely-owned, who also partnered with Mercedes-Benz to produce GWM ORA cars.

We're watching with bated breath to see who lands next.

Why Chinese cars should be on your radar

We're not saying Chinese cars are better than the beloved established brands.

But when it comes to EVs, China's been in the game longer. Manufacturers worked hard building expertise, infrastructure and innovation while European and American carmakers lagged behind, reluctant to change course.

The Chinese automotive industry is bringing seriously challenging packages:

• Genuinely affordable pricing
• Cutting-edge technology
• Powerful EV batteries and charging capabilities
• New and exciting models

While some manufacturers may catch up in the EV race, Chinese carmakers have pulled miles ahead of the curve.