China is no longer just the workshop of the world; it’s now the biggest car exporter on the planet, surpassing Japan and Germany. For UK dealers and finance brokers, that shift isn’t some far-off headline. It’s already shaping showroom conversations, finance applications, and customer expectations.
Here’s the story behind the numbers, why it matters for your business, and how you can adapt.
The Numbers That Tell The Story
- In 2023, China shipped over 4 million vehicles overseas, up from 2.5 million in 2022. That made it the largest car exporter globally, leapfrogging both Japan and Germany.
- EVs are at the heart of it. Around 30% of Chinese exports are electric, making China the world’s dominant EV exporter. Brands like BYD, SAIC (MG), Chery, and Geely are leading the charge.
- Growth hasn’t slowed in 2024 and 2025. Analysts expect China to pass 5 million exports per year by the end of 2025 if current trends hold.
That’s not just volume, it’s momentum. And momentum in the car market changes retail dynamics fast.
(Source: McKinsey)
Why Chinese Cars Are Selling, And Why That Matters In The UK
- Price-to-tech ratio is unmatched
Chinese EVs and hybrids often undercut European rivals by 15-30% while offering more kit as standard. For value-driven UK buyers, that’s hard to ignore.
- Brand awareness is growing fast
Ten years ago, most UK buyers hadn’t heard of BYD. Today, it’s Europe’s second-largest EV seller behind Tesla, with the Atto 3 and Dolphin gaining traction in UK showrooms.
- Legacy OEMs are losing their grip
German and Japanese exporters are struggling to compete on both volume and cost, especially in smaller EV segments where China is flooding the market.
- Finance is the enabler
Price is one thing, but the monthly payment is what customers really care about. Competitive PCP and HP packages will be the difference between browsers and buyers for Chinese brands entering UK forecourts.
What UK Dealers Should Watch
1) Stock planning is shifting
With Chinese brands ramping up UK launches, expect more affordable EV and hybrid stock to hit forecourts. For dealers, the challenge will be balancing that with the residual values of existing petrol and diesel stock.
2) Perception gaps are closing
Early worries about reliability and safety are fading. Many Chinese models now carry 5-star Euro NCAP ratings and warranties that match or exceed legacy OEMs. Dealers need to reframe sales scripts; these aren’t “cheap alternatives” anymore, they’re mainstream contenders.
3) Faster sell-through on EVs
Auto Trader data shows 3-5-year-old EVs like the Tesla Model 3 already sell within 17–20 days. As Chinese EVs filter into the used market, dealers should prepare for shorter stock cycles and plan finance products that support quick turnover.
What Finance Brokers Should Watch
- Residual values are uncertain: As more Chinese EVs land, forecasting future values is tricky. Conservative GFVs may initially be needed on PCP.
- Affordability is the sales hook: Customers moving from a £350/month diesel into a £299/month new EV with more tech will drive penetration, but brokers must explain TCO (total cost of ownership) clearly.
- Near-prime opportunities: With sharper upfront pricing, Chinese models may open the EV market to customers who previously couldn’t get approved for higher-value German EVs.
Strategies To Stay Ahead
- Train teams early
Don’t wait for stock to arrive. Educate sales and finance staff on BYD, MG (SAIC), Geely, and Chery models, including specs, warranties, service intervals, and charging performance.
- Tailor finance to new buying patterns
Younger buyers often discover Chinese EVs online first. Embed soft-search tools on VDPs so they can check eligibility without fear.
- Use bundles to protect margin
Pair competitive PCP/HP with warranties, service packs, and GAP insurance. This balances lower vehicle margins with finance and aftersales revenue.
- Watch residual value data closely
Partner with lenders (like Marsh Finance) who can update underwriting and GFVs in near real-time as resale trends become clearer.
China Becoming The World’s Biggest Car Exporter Isn’t Just A Trade Story
It’s a retail reality that UK dealers and brokers will feel in stock mix, finance demand, and customer conversations.
Handled well, it’s a chance to:
- Boost finance penetration with more affordable EVs
- Shorten sell-through cycles
- Attract new segments of buyers who previously felt priced out
Handled poorly, it could mean squeezed margins and mispriced risk.
Partner With Marsh Finance
At Marsh Finance, we’ve been helping UK dealers and brokers grow for over 50 years. Our flexible HP and PCP products are designed to boost finance penetration, support faster stock turnover, and keep customers driving away happy.
With real-time underwriting, tailored support, and a proven track record in dealer and broker partnerships, we’re here to help you stay competitive in a fast-changing market.
👉 Partner with Marsh Finance today