UK car sales surged past the 2mn mark last year, reaching their highest level since before the pandemic, with Chinese manufacturers playing an increasingly pivotal role in reshaping the market. Registrations rose 3.5% to 2.02mn in 2025, mainly driven by demand for electric vehicles which made up 23% of sales. Chinese brands accounted for nearly 10% of all new cars sold, almost 200,000 vehicles, roughly double their share from the previous year. Their rapid expansion, particularly in the electric vehicle segment, has intensified competitive pressure on established European, Japanese, and Korean automakers, many of which are already grappling with regulatory demands and shifting consumer preferences.
UK car sales surged past the 2mn mark last year, reaching their highest level since before the pandemic, with Chinese manufacturers playing an increasingly pivotal role in reshaping the market.
Across the Eurozone, inflation eased to 2.0% in December, down slightly from 2.1% in November and precisely matching the European Central Bank’s long‑term target. Core inflation, which strips out volatile food and energy prices, also softened to 2.3%, compared to 2.4% in the previous month, reinforcing the view that price pressures are gradually normalising. While the ECB is expected to maintain steady interest rates in the near term, policymakers remain cautious, mindful of wage dynamics and geopolitical uncertainties that could re‑ignite inflationary pressures.
Across the Eurozone, inflation eased to 2.0% in December, down slightly from 2.1% in November and precisely matching the European Central Bank’s long term target.
Financial markets have taken the sharp rise in US–Venezuela tensions, including the US detention of Nicolás Maduro, with an unexpected degree of calm. Oil prices even edged lower, as traders concluded that Venezuela’s diminished production capacity would limit any immediate disruption to global supply. Analysts suggest the more meaningful consequences may unfold over time: Venezuelan debt has begun to attract interest on hopes of eventual political normalisation, and investors are closely watching whether the episode influences the US dollar’s safe‑haven appeal or boosts appetite for gold.
Our specialist's final thought
"The episode highlights how geopolitical shocks can ripple through markets unevenly and with a lag."
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