Chinese electric vehicle models have surged to the top of the UK leasing market, with the Omoda E5 and Jaecoo E5 from automotive giant Chery leading the popularity charts throughout 2025 according to data from Octopus Electric Vehicles.
Chinese Dominance in 2025 Leasing Market
The Omoda E5 emerged as the most popular car for the entire year among customers leasing through Octopus EVs, the electric car leasing division of Octopus Energy. This Chinese-made model from Chery outperformed established competitors to claim the top spot in annual rankings.
Remarkably, the newer Jaecoo E5, which only launched in September 2025, demonstrated exceptional market traction by becoming the best-selling model in the final quarter of the year. This rapid ascent saw the Jaecoo E5 displace the Cupra Born from the quarterly top five list, with the Omoda E5 moving to second position for that period.
Annual Top Performers
For the full year 2025, the complete top five ranking from Octopus EVs featured:
- Omoda E5 (Chery)
- Tesla Model Y
- Mercedes EQB
- Cupra Born
- MG 4
Alvin Castillo, procurement director at Octopus Electric Vehicles, commented on the Jaecoo E5's remarkable performance: "I first saw the JAECOO E5 at the Shanghai Auto Show in April 2025 and it was immediately clear it could be a game-changer for the UK. We were the first to start selling it in September, and within just three months it had become one of our top-performing cars of the year."
European Fightback Expected in 2026
The landscape is anticipated to shift significantly in 2026, with established European manufacturers preparing to launch competitive new electric models that could challenge the current Chinese dominance.
Castillo explained: "Looking ahead to Q1 2026, the established European brands are expected to hit back at some of the newer entrants. Mercedes will release four new electric models, while the BMW iX3, the first of the Neue Classe, is particularly exciting."
Changing Market Dynamics
Industry experts predict several key trends that will shape the electric vehicle leasing market in the coming year:
- Hatchback Resurgence: While SUVs dominated 2025, 2026 is expected to see electric hatchbacks making significant gains with models like the VW ID Polo, Cupra Raval, Geely EX2, and new entrants such as the AION UT entering the competitive market segment.
- Affordable Luxury: The success of challenger brands like Chery demonstrates how luxury features are becoming more accessible. Castillo noted: "Customers moving to challenger brands are choosing the top specification, because luxury is now genuinely affordable."
- Vehicle-to-Grid Technology: Cars equipped with V2G capability, which allows electric vehicles to power homes, are expected to become more commonplace. Major manufacturers including BMW, Kia and Renault are introducing V2G-ready models this year.
Castillo highlighted the growing importance of this technology: "For years the industry has been talking about the potential of V2G, both for driver's bills and helping to support our energy system. Octopus' UK-first V2G tariff – Power Pack – showed that the technology is scalable, but we're now seeing new models enter the market that can tap into batteries sitting on driveways."
The electric vehicle leasing market continues to evolve rapidly, with Chinese manufacturers currently leading but facing increased competition from European brands introducing innovative new models and technologies throughout 2026.
