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Electric vehicles

Chinese Electric Vehicles Poised to Dominate UK Markets

Strategic Insights

— 2 min read

Western car brands are shifting their focus towards luxury models, giving Chinese electric vehicles (EVs) a competitive edge in the UK market. Chinese manufacturers have secured a lead in manufacturing smaller EVs, with strengths in battery supply chains, manufacturing efficiency, and software. The charity associated with motor sports' governing body, the FIA Foundation, predicts that China will continue to surge in the global passenger car sales market. Chinese brands have become increasingly popular in the UK, with about 10pc of new cars sold already coming from China. The shift towards luxury models by European and UK carmakers has left the affordable car market to Chinese manufacturers.

Key Takeaways:

  • The FIA Foundation predicts that China will account for 27pc of global passenger car sales, with a competitive edge in manufacturing smaller EVs.
  • Chinese manufacturers have strengths in battery supply chains, manufacturing efficiency, and software, making them well-suited for the affordable EV market.
  • Western car brands are shifting their focus towards luxury models, leaving the affordable car market to Chinese manufacturers.
  • Chinese brands have become increasingly popular in the UK, with about 10pc of new cars sold already coming from China.
  • The best British contender in the small-car market is the all-electric Mini, priced at £30,000.
  • The relatively low prices of Chinese cars are giving them an increasingly strong grip on UK markets, with 19,000 of 191,000 cars sold in June being made by Chinese brands.
  • Chinese manufacturers are now targeting the market for larger EVs, with MG, Jaecoo, Xpeng, and Genesis offering both small and larger EV models.
  • Jaguar Land Rover declined to comment on the threat from Chinese lookalikes, such as the Jaecoo J5.
  • There are more than 130 EV models available in the UK, with 33 priced under £30,000.

Statistics:

  • 27% of global passenger car sales are predicted to come from China.
  • 10% of new cars sold in the UK are already made by Chinese brands.
  • £17,000 is the starting price of the BYD Dolphin.
  • £16,000 is the starting price of the MG3.
  • 191,000 cars were sold in the UK in June.
  • 19,000 of the cars sold in the UK in June were made by Chinese brands.
  • 130 EV models are available in the UK.
  • 33 EV models available in the UK are priced under £30,000.
  • £4bn is being invested by the Department for Transport to support both industry and consumers in making the switch to electric.
  • Up to £3,750 off the cost of a new electric car is available through government discounts.
  • 83,000 public chargepoints are now available in the UK.

Sources:

  • FIA Foundation
  • RAC Foundation
  • AA
  • Department for Transport
  • The Telegraph (UK)

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