Chinese electric car makers could force UK brands to face ‘serious difficulties’

According to a new study, 51 percent of car dealers think the arrival of new Chinese electric vehicle companies will force some established manufacturers out of business.

Major manufacturers like BYD, Nio and XPeng are already dominating sales in China and Eastern Asia, with bold plans to launch in Europe.

Slightly less than a third of car makers believe some existing brands are already falling behind in the electric revolution.

Around 36 percent said the next few years would see more established and mainstream brands would fold as a result of tougher competition.

These car dealers predicted that European car makers would be affected most, followed by US vehicles and Japanese cars.

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Paul Burgess, CEO at Startline Motor Finance, highlighted how the success of MG in recent years had made a deep impression on dealers.

In response, Chinese manufacturers like Ora and BYD were becoming more visible on a global scale, especially in Europe.

He added: “The competitiveness of the forthcoming products appear to range from broadly competent to really very good and, depending on factors such as pricing, brand awareness and customer support, they could make a very real impact on the market.

“The Chinese also enjoy other advantages such as ready availability of batteries and are entering the UK market as EV-only entities, meaning they will circumvent the proposed ‘EV Mandate’ on sales figures being introduced by the Government.”

In contrast, existing manufacturers are in varying states of competitiveness, with some having efficient plans to roll out worldwide, while others are looking in the long term.

There are also fears that carmakers who have relied so heavily on petrol and diesel models in the past will lag behind and ultimately fail in their pursuit of electric vehicles.

Mr Burgess said: “It is presumably these businesses that dealers have in mind when predicting that some car makers will hit serious difficulties.”

The research found that only a quarter of owners say there is room in the market for new and existing manufacturers to co-exist in the same market.

BYD – or Build Your Dreams – is the world’s top-selling electric car maker, having sold over 900,000 EVs in 2022, overtaking Elon Musk’s Tesla for the top spot.

The brand is backed by American billionaire Warren Buffett and sells its entry-level Seagull EV for around £9,000, despite having an impressive range of 252 miles.

Another Chinese manufacturing giant, Nio, is aiming to be the world’s leading premium electric car brand, with plans to launch in the UK this year, with a new vehicle set to be rolled out this week.