Consumers set to benefit from a flood of affordable Chinese electric vehicles as the UK’s no-tariff approach attracts more car makers
The Chinese are coming to a car showroom near you and they have electric vehicles they want you to buy.
As the UK becomes Europe’s biggest EV market and the third largest in the world Chinese manufacturers have their foot down hard and are steering a course for Britain’s car show rooms.
The UK is tariff-free unlike the EU and US, and with many EV enthusiasts already on the road and thousands more contemplating the move from petrol and diesel to electric, Chinese car makers are set to flood the UK with affordable battery powered cars.
The latest to arrive is XPENG which has unveiled its G6 model and plans to offer its more expensive X9 later this year. The Tesla-styled vehicle is for sale at a fraction of the price of Elon Musk’s better publicised offerings
Dr Brian Gu of XPENG Motors said the combination of the UK’s large market, many of whom are already familiar with ev’s, and tariff-free access made the UK an attractive proposition as the Guangdong-based company seeks to expand.
“We are excited to bring a new era of smarter, more sustainable mobility to the UK market and globally,” he said. XPENG are confident its vehicles “will resonate with UK consumers, offering exceptional quality, innovation, and an outstanding driving experience.”
XPENG’s ev’s are going on sale for just under £40,000 but that is around £7,000 cheaper, which it hopes will give it an advantage against the rival cars it is competing against.
The first XPeng dealerships in the UK are due to open next month, with the brand aiming to have 20 locations by the end of the year. Its distribution of the XPeng G6 is being handled by Solihull-based firm International Motors Limited.
While the UK EV market is growing with nearly 1 in 5 new electric cars registered last year the industry body the Society of Motoring Manufacturers and Traders (SMMT), warns that consumer demand is slowing and has called for incentives to stimulate the market.
The SMMT says sales were still short of a government mandated target for domestic manufacturers to achieve 22 per cent of all sales. That figure rises to 28 per cent this year.
Motoring experts say affordable Chinese built electric cars could well be key to the UK’s move to zero-emission vehicles. Figures from Auto Trader show that new Chinese models have boosted the number of EV’s which cost less than £30,000 from nine last year, to 29 in January.
Crucially, the Chinese vehicles are also winning over UK customers. New research, again from Auto Trader found that four in ten consumers are willing to consider a Chinese car brand.
The greatest support for them comes from the 17-34 age group, with more than half (57%) attracted by factors including innovative technology and affordability. This contrasts with just one in four (25%) of over 55s.
The same research showed that there was a big jump in the number of retail car showrooms stocking a Chinese new model aimed at cornering the first-time buyers market – up from 34 in January 2024 to 173 by the end of the year.
Affordable Chinese ev’s are expected to help further drive down prices for UK buyers this year, as manufacturers compete tomeet the mandated 28 per cent sales targets by offering discounts.
Last month the average discount on a new EV was 11.5 per cent off the recommended retail price by comparison with the 4.8 per cent off two years ago. Car dealers say discounts can be as high as 28 per cent for some brands.
Ian Plummer, Auto Trader’s commercial director, said: “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.”
