Chinese car makers have stormed into the British EV market as record numbers of drivers seek cheaper models — could there be trouble ahead?
‘I bought a cheap Chinese electric car that’s better than BMW'(Image: Luke Chilingsworth)
Two years ago, when Dr Dimitar Ormanov swapped his Honda Civic for a new vehicle at a Milton Keynes dealership, he had initially set his sights on a high-tech Tesla. However, upon discovering Chinese-manufactured BYDs on the forecourt — available at a fraction of the cost of Elon Musk’s electric brand — he knew exactly which direction he was headed.
Fast forward two years and he has no regrets about his Far Eastern purchase: “I am happier driving Chinese cars than Volkswagen, Mercedes or BMW,” he says today. Chinese cars are really well-made.”
Dimitar is not alone in this sentiment. This week, Chinese car maker BYD announced that the UK has become its second biggest market after sales here skyrocketed by 880% in September compared with the same period last year.
The company sold 11,271 cars in the UK last month, placing it above Land Rover, Mini and Tesla. In comparison, Vauxhall registered 12,120 cars last month, while Skoda sold 11,925 cars and Volvo sold 11,570 cars, reports the Express. It surely won’t be long before BYD surpasses them as well.
This year has seen a significant breakthrough for Chinese cars in the UK, with brands such as BYD, Omoda and Jaecoo making their mark and achieving genuine sales success. Experts believe this poses a major threat to Western manufacturers.
What is their appeal?
A recent study shows seven in 10 people are open to the idea of buying a Chinese model. Dan Aleksandrov, a BYD owner, reckons he understands the reason behind the surge in popularity. His Atto 3 is among numerous BYDs appearing throughout his Peterborough neighbourhood in recent weeks, alongside the Omoda, produced by Chinese manufacturer Chery.
Dan is impressed with BYD’s Vehicle-to-Load tech(Image: Luke Chilingsworth)
Demonstrating the vehicle’s leading features to the Express, Dan highlights that China has emerged as a frontrunner in what’s known as “vehicle-to-load technology”, enabling motorists to power everything from camping equipment to other electric vehicles (EVs) without needing a plug socket. His vehicle supports up to four sockets and can even charge my own Renault 4 using just one straightforward cable.
Dan also emphasises the benefits of BYD’s Lithium Iron Phosphate (LFP) “blade” batteries, which enable drivers to charge their vehicles safely to full capacity.
This technology is believed to be less prone to deterioration from 100% charges compared with most competitors, whose manufacturers encourage their customers to charge their EVs to approximately 80% to maintain battery longevity.
The price
BYD’s newest Atto 2 model begins at just under £31,000, making it almost £15,000 more affordable than the Tesla Model Y at £45,000. This is evidently proving successful, with BYD shifting 24,333 vehicles across its model range this year – in comparison with 26,951 sales of Teslas.
Mike Brewer, the well-known second-hand dealer and host of TV series Wheeler Dealers, anticipates that Chinese models will compel Western car firms to lower their prices in the future.
“It’s encouraging that on a consumer level at least people will get themselves into a decent, nice car now at a good price,” he comments.
Dan and Dimitar are proud owners of BYD Atto 3 electric cars(Image: Luke Chillingsworth)
Chery’s executives have reassured customers that the company’s models are of “quality” despite their budget price tags. They claim that their Chinese manufacturers can offer cost efficiencies in their supply chains due to the high production numbers involved.
Moreover, BYD boasts a “fully integrated supply chain” and an “in-house battery” development, which enables them to sell vehicles at much lower prices than Western brands.
The concerns
The price tags may be cheap, but keeping the car on the road could yet be a concern. Dimitar found that the cost of servicing his BYD was around £120 more than his previous petrol and diesel vehicles.
Then there is the issue of repairs, with some motorists reportedly experiencing delays in obtaining the necessary components for their broken down cars.
Andy Turbefield, head of quality at Halfords Autocentres, stated: “Access to parts may be an issue until a suitable supply chain can be set up in the UK. It can take six to eight weeks for parts to arrive from China via ship, more if trade routes are further disrupted by world events.
“However, manufacturers such as BYD now have their own ships to transport cars and parts to the EU and UK. Established carmakers such as Stellantis are setting up Chinese vehicle factories in Europe, Leapmotor being one, to ensure that they comply with rules of origin regulations. Several are now working directly with Chinese OEMs.”
Insurance coverage
The delays in obtaining parts could be causing issues with insurance coverage. Dimitar stated that “no one” was insuring BYDs when he first received the keys two years ago.
He eventually managed to secure a policy, but a year later was informed that the company would no longer underwrite BYD models, forcing him to start over.
Dan has also encountered problems securing coverage over the past year, although he emphasised that his prices have since decreased. Both men’s experiences are not unique.
The UK is now BYD’s second largest market(Image: Getty)
Bosses have been surprised at the sales success of Jaecoo in the UK(Image: Luke Chillingsworth)
The BYD Seal is one Chinese model that consumers are reported to have had difficulty insuring. Last year, BYD told a news site that it was “taking this matter very seriously and working with the relevant parties, including Thatcham Research [the UK’s only not-for-profit automotive risk intelligence organisation], to find a long-term solution”.
Ben Townsend, head of automotive at Thatcham Research, suggested that the issue was not the parts themselves but companies’ “insufficient knowledge about how the UK repair and insurance market works”. Another problem seems to be a cultural clash.
In China, due to low labour costs, even minor damage could lead to mechanics replacing the entire side panel. However, in the UK, the high labour costs associated with this repair would likely render the car unviable.
LV, one of the insurers Dimitar has previously struggled to secure coverage with, acknowledged there were some issues. The firm told the Express that it was “still assessing the insurance risk” as the models were relatively new to the market.
Another insurer, Hastings Direct, stated that there were “many factors which influence the offer of insurance and the price”.
Mileage limits still a concern
Concerns around electric cars’ range are still a stumbling block (Image: Getty)
While range anxiety is less of a concern for electric vehicles than it used to be, mileage limits still seem to be a significant hurdle for EV adoption.
A YouGov poll of 1,005 UK drivers revealed that 71% of non-EV owners cited the fear of cars running out of charge mid-journey as their primary concern. Tesla tends to have higher mileage than BYD models, with Dimitar admitting he has been caught out more than once when driving home: “I have to stop at Cambridge services just to make sure I’m going to get home safely. My wife bought a Tesla Model 3 and you don’t have to do that.”
However, Jaecoo and Chery’s Super Hybrid System is defying the trend, with estimated ranges of over 700 miles proving that China won’t be left behind on range.
Depreciation of values is another concern, particularly in the electric car market where valuations often plummet rapidly in the first few years of a vehicle’s lifespan. This is partly due to rapid technological advancements that render current EV models outdated.
Previous data suggests that the Atto 3 loses about 51% of its valuation over several years, dropping from £37,640 to £19,196 after covering 36,000 miles. Brand recognition also plays a role in pricing, with Chinese firms yet to establish reputations like major marques such as Porsche or Ferrari, who can still command high prices for their second-hand models.
Dimitar acknowledges this concern but emphasises his plans to adapt to ensure he doesn’t lose out. Over-the-air updates and extended battery life mean that the latest EVs from China will have a much longer lifespan than traditional combustion models.
Interference and privacy concerns
Concerns about Chinese interference and privacy have become significant issues in recent years, with the phone company Huawei being banned from the UK back in 2023.
The US has prohibited certain Chinese-made hardware and software from being installed in cars due to safety risks. Meanwhile, UK Government and military staff have been warned about the potential danger, with personnel at RAF Wyton advised to park cars with Chinese components at least two miles away because of fears of satellite navigation surveillance.
A recent survey revealed that two-fifths of drivers aged 55 and above have worries about data security and privacy when purchasing Chinese products.
Neither of the two owners we spoke to had legitimate concerns about this matter, though. Whilst Dimitar continues to be an enthusiastic advocate of BYD, he hasn’t ruled out owning a Tesla down the line.
“It’s got a unique charging network which is very good,” he says. “These guys from China need to take that onboard. But overall the cars are really good. I’ve been driving it and no problem. I’ll call you when the first MOT comes up!”
In a statement to the Express, BYD said: “BYD has carried out extensive benchmarking across the industry and we aim to offer competitively priced servicing for our cars. BYD has its own parts warehouse in the UK, supported by DHL, and therefore has strong availability on the majority of BYD parts.”
Regarding insurance, BYD added: “We did become aware of an issue when the brand launched in the UK in 2023, however we quickly took steps to ensure the problem was resolved as a priority. This includes working closely with Thatcham Research to provide insurance companies with the necessary information and data needed to provide insurance for BYD cars. We also now have a network of authorised repairers which makes it even easier to get affordable insurance for BYD vehicles.
“A key advantage of the BYD Blade Battery is durability, which means when charging the car will regulate the amount of power going to the battery to protect its long-term health.”