The UK’s tariff-free arrangement means Chinese EVs are much more affordable – for now - Lillian Suwanrumpha/AFP
The Sealion, Seagull and Dolphin. No, this is not the title of an unpublished children’s book. This selection of aquatic creatures is a range of car models poised to surge in sales this year.
Manufactured by Build Your Dreams (BYD), the cars are part of the Chinese influx flooding the UK’s electric vehicle market.
Omoda, Aiways, Nio, Seres, Haval, XPeng and Zeekr are among the other lesser-known names planning to launch or increase their presence in the UK.
As the rollout of new names continues, Auto Trader predicts Chinese-branded models could account for up to 25pc of Britain’s electric fleet by 2030.
But are they worth it? Telegraph Money delves into whether 2025 is the year to buy a Chinese electric vehicle (EV).
Are Chinese electric cars cheap?
Chinese EVs are notoriously cheap. Figures from Auto Trader show that new Chinese entrants have helped boost the number of sub-£30,000 EV options in UK showrooms – going from a lowly nine last year, to 29 at the turn of 2025.
Many RRP prices are much lower in China – for example, the list price of BYD Dolphin can be as much as £10,000 less than it is listed for in the UK.
Ginny Buckley, of Electrifying.com – a site specialising in EV and hybrid vehicles, said: “Chinese cars are almost always cheaper than European models, although there are some exceptions.
“For example, the Ora 03 was considered expensive and has had very slow sales. In response, £6,000 has now been knocked off its list price to bring it in line with the market.”
Due to the zero-emission mandate, European manufacturers have been forced to offer heavy discounts, meaning “their models are often just as affordable – if not cheaper – than the Chinese alternatives”, said Ms Buckley.
Will prices reduce in 2025?
The UK remains the only Western country not imposing tariffs on Chinese-made cars, allowing list prices to remain highly competitive. But there’s no guarantee it will stay that way.
David Henig, director of the UK Trade Policy Project, said: “The US might say it will put a 10pc tariff on goods from the UK unless the UK takes action against China.”
Sir Keir Starmer is also likely to face pressure from domestic industry to help manufacturers struggling to compete with Chinese EVs’ low production costs.
The Biden administration introduced 100pc tariffs on Chinese EVs last year and announced a ban on Chinese car-connected technology, while the EU, which could similarly push for the UK to back its stance, approved tariffs in October.
Brussels has imposed extra duties of 17.4pc on cars made by BYD, 20pc on those made by Volvo-owner Geely and 38pc for SAIC.
The measures – on top of existing 10pc tariffs – are designed to protect European carmakers, which have complained they are being unfairly undercut.
He wrote: “Chinese products, while cheap, are inferior in both the tangibles of quality of the interior, driving range and noise suppression, but also in more intangible qualities such as dynamic ride and handling.
“They also come from a different culture where hi-tech electronics, touchscreens and voice commands are considered highly desirable rather than confusing, distracting and generally a bad idea.”
As the years go on, however, it’s expected that the quality will improve. Prices are currently pushing downwards, but if Chinese carmakers achieve better quality, prices will likely begin to bulge.
Stuart Masson, of The Car Expert, offers a different perspective on the current state of Chinese cars. He said: “The reality is they’re not just cheap rubbish cars. Their quality is very good.
“The Chinese car industry has the same strengths and weaknesses as any other. If you’re buying a budget car, you’re not going to get the same quality as if you’re buying a premium car.”
Do British drivers trust Chinese electric cars?
A lack of trust and suspicion continues to prevail among British drivers.
Research by Auto Trader found 41pc of people aged 55 and over were concerned by data security and privacy risks in relation to Chinese motors.
Ian Plummer, of the marketplace, said: “Consumer 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.”
The MG brand could be a winning formula for Chinese EVs – a familiar and trusted brand in Britain but now owned by SAIC
Mr Masson said: “People are buying them on a practical level. It’s head-over-heart rather than on an emotional level.
“It will take time to change that. People will buy their car, realise that it’s actually pretty decent and be happy to buy another one. So it takes a generation of ownership, and ownership tends to be a four-year cycle.
“China has always been playing the long game, it isn’t worried about four-year cycles.”
The MG brand is still cosy and familiarly British, but it’s well-known to most that its rejuvenation has come under the ownership of SAIC – a Chinese government-owned car manufacturer.
The brand is trusted in the UK, showing that Chinese firms can hit a winning formula by taking on a legacy name.
Its new MG3, a hatchback which starts from £26,995, is predicted to “depreciate quite slowly”, according to What Car?, retaining more of its list price after three years than all of its rivals, including the VW Polo.
Ms Buckley said: “When it comes to residual values, MGs generally hold their value well, but cars from other Chinese brands are not yet on the market in large numbers. It’s hard to assess their long-term depreciation.”
For those pondering whether to buy a Chinese EV this year, Mr Masson said “there is no reason not to buy one unless you definitely don’t want to”.
Do Chinese electric cars spy on you?
Last autumn, the Biden administration raised the alarm about the growing prevalence of Chinese components in electric and future self-driving vehicles, as it outlined plans to ban components “with a sufficient nexus” to China.
The US Department of Commerce said that “malicious access” could allow enemies to “remotely manipulate cars on American roads”.
Ciaran Martin, the former head of the National Cyber Security Centre, GCHQ’s defence arm, last year dismissed concerns that someone in China could take control of thousands of cars. “They’re not capable of magic,” he said.
Others have suggested cars should be the least of drivers’ Big Brother concerns, with the vast array of household technology already being made in China.
Will the Chinese EV powerhouse continue?
One in three vehicles is now built in China, while the other two-thirds are full of Chinese components.
It’s not a new phenomenon, either. The Asian country has been the world’s largest car-producing country for the past 15 years, and it churned out more cars in 2024 than the UK has in the past quarter of a century.
Mr Masson said: “The scale is staggering and the high-cost Western world can’t compete with it. Whether it’s electric, petrol, diesel, fairy dust, there is no competition for that monster of an industry.”
Whether it will succeed remains to be seen. 2024 was its first full year in British showrooms, when BYD sold 8,788 cars – the equivalent to one in 200 vehicle sales. That’s half the number of units sold by Jaguar.
Ms Buckley said: “I’m not convinced we’ll see Chinese brands take over the car industry overnight. Some brands will succeed and become major players in the UK and Europe, but many will struggle.”
Is it worth buying a Chinese EV this year?
The growth of Chinese cars in the UK is undeniably causing a major shake-up in the industry, so watching what unfolds from afar could be the best option.
The Government’s zero-emission mandate, which compels car makers to sell rising proportions of EVs, will again play a role in legacy manufacturers to cut list prices.
In January, the average discount on a new EV was 11.5pc off the RRP, compared with 4.8pc two years ago, according to Auto Trader.
Yes, it could make sense to grab a low-cost Chinese model now in case tariffs are introduced, but the threat of Chinese brands swallowing up the market is also causing better-known brands to drop prices.
Ms Buckley said: “More affordable models like the Citroën ë-C3 and the upcoming Vauxhall Frontera are direct responses to the growing Chinese competition.”
Mr Plummer said: “These new entrants are setting new standards in car design, technology and production, forcing all brands to work harder to attract buyers.”
The same goes for China. A flood of new cars is hitting the British market this year, but China’s ability to significantly improve its technology in a short space of time could almost immediately render this year’s fleet out of date.
