Chinese entrants step up charge into UK's electric vehicle market - but trust barriers remain
London, UK January 30, 2025 – Affordable high-tech Chinese electric car brands are winning over younger UK consumers and emerging as key players in the nation’s transition to zero-emission vehicles (ZEV), according to the latest Auto Trader research.
As Chinese brands like BYD, GWM, and Omoda gain ground in the UK market, new research shows four in ten UK consumers are willing to consider a Chinese car brand. The greatest support for Chinese brands comes from the 17-34 age group, with 57% attracted by factors including innovative technology and affordability compared to just 25% of over 55s.
By the time the UK’s ban on the sale of new petrol and diesel cars comes into force in 2030, new entrants – dominated by Chinese brands – could account for up to 25% of the UK EV market or 400,000 cars on the road according to the Road to 2030 Report. This comes despite suspicions among older, consumers who harbour concerns about data security, quality and pricing. The research found 41% of 55+ consumers were concerned by data security and privacy risks when buying Chinese products, with 43% of the same age group mistrusting the quality of goods.
The Chinese charge comes as the UK overtakes Germany to become the biggest EV market in Europe and the third biggest worldwide. The UK also remains tariff free to Chinese manufacturers, in contrast with EU markets, while new US President Donald Trump has scrapped EV sales targets altogether.
Chinese new entrants have helped to raise the number of sub-£30,000 new EV options from nine to 29 between 2024 and 2025, with examples including the Leapmotor T03 (£15,164) and GWM ORA 03 (£24,995). Moreover, Chinese manufacturers have not yet fully flexed their pricing power in the UK market, with many RRP prices lower in their home market. For example, the BYD Dolphin RRP in China can be as much as £10,000 less than the UK.
New Chinese entrant share of enquiries on Auto Trader for new cars more than doubled last year, up from 1.3% in 2023 to 3.4% in 2024. Last year also saw a mammoth jump in the number of retailer sites stocking a Chinese new entrant car according to Auto Trader data – up from 34 in January to 173 by the end of the year.
Across all price bands, lower production and battery costs are bridging the price gap between EVs and traditionally fuelled vehicles. Since the beginning of 2024, the price premium on the average recommended retail price of a new EV over the equivalent ICE model has fallen from 35% to 24%, equivalent to a £3,600 drop.
Chinese brands are increasingly pivotal players in the UK’s electric transition. Their ability to offer affordable, high-quality electric vehicles, is winning over the younger drivers who will play a vital role in driving the widespread adoption of electric vehicles. But the rise of Chinese brands comes with challenges.
Consumers' trust in the quality and safety of these new entrants remains mixed, particularly among older buyers. To succeed, Chinese brands will need to focus on reassuring consumers through strong safety ratings, data security, expert reviews, and customer service that they are as good as the more trusted traditional manufacturers"
Affordable Chinese models are expected to play a part in driving down new EV prices for UK buyers further in 2025, as manufacturers strive to meet an EV sales target of 28% under the Zero Emissions Vehicles mandate by offering discounts. In January, the average discount on a new EV was 11.5% off the RRP – compared with 4.8% two years ago – with discounts as high as 28% for some brands.
Plummer added: “The intense competition in China has closed the price gap between EVs and ICE, a trend we expect to see here soon. These new entrants are setting new standards in car design, technology, and production, forcing all brands to work harder to attract buyers.
"In the long term, this will lead to more sustainable and affordable EV production, essential for a successful transition and cleaner air. These new players have the products and confidence to challenge established brands, sharpening competition and benefiting consumers."
Follow us on our social channels to keep up with the latest news, insights and company developments.
If you would like to be added to our News & views mailing list, or have any media-related enquiries, please contact our press team:
Sign up to our email alerts service:
Join our news & views mailing list
or submit media-related enquiries:
