Affordable Chinese electric vehicles (EVs) are poised to dominate Britain’s roads as Western brands turn to luxury models, experts have said.
About 10pc of new cars sold in the UK already come from China, but that proportion is set to surge, according to the FIA Foundation, the charity associated with motor sports’ governing body.
“China, which now accounts for 27pc of global passenger car sales, has secured a competitive edge in manufacturing smaller EVs, with strengths across key aspects of EV production, including battery supply chains, manufacturing efficiency and software,” it said in a report.
“It means China has evolved from a net importer of passenger cars before 2020 to the world’s largest net exporter.”
European and UK carmakers have largely ceded the affordable car market to the Chinese and are instead focused on upmarket SUVs and other large cars, the report noted.
Range Rover is planning its new all-electric model launch in 2026 with starting prices predicted around £130,000 to £150,000.
Jaguar is converting into an all-electric luxury brand, with its first production version to be unveiled later this year and expected to be priced higher than previous models.
Steve Gooding, chief executive of the RAC Foundation, said: “Our love affair with Fiesta-sized cars might swiftly be rekindled if more small, keenly priced EV models start coming to market.
“But will the auto companies see this as being in their interest, given the higher profit margins they tend to earn on bigger vehicles?”
In the small-car market the best British contender is the all-electric Mini, made mainly at the BMW Group plant at Cowley, in Oxford, but with some versions built in China and Germany. Prices start at £30,000.
This compares with the £17,000 BYD Dolphin or the £16,000 MG3, both built in China.
Jack Cousens, head of roads policy at the AA, said the relatively low prices of Chinese cars were giving them an increasingly strong grip on UK markets. About 19,000 of the 191,000 cars sold in the UK in June were made by Chinese brands such as MG, BYD, Omoda, and Jaecoo.
Mr Cousens said the Chinese manufacturers were also now targeting the market for larger EVs.
He said: “MG, now Chinese owned, offers both small and larger EVs. Jaecoo, Xpeng and Genesis are doing well in the larger market. Look out for the Jaecoo J5 which is on the cusp of being released and looks like a Range Rover Evoque, but at a fraction of the price.”
Jaguar Land Rover declined to comment on the threat from Chinese lookalikes.
There are more than 130 EV models available in the UK, which are a mix of budget cars, family cars and SUVs. AA research suggests the market includes 33 priced under £30,000, with more set to launch in the UK in the coming months
Edmund King, AA president, said: “There is no doubt that over the last 20 years the size of vehicles, whether petrol, diesel or electric, has grown in line with the popularity of SUV models where consumers seem to like the higher seating position and extra space.”
The Department for Transport said it was acting to encourage uptake of small EVs.
A spokesman said: “We’re investing over £4bn to support both industry and consumers in making the switch to electric, giving drivers the confidence to choose the models that work best for them.
“This includes providing discounts worth up to £3,750 off the cost of a new electric car and rolling out more public chargepoints with 83,000 now available and over 100,000 more on the way.”
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