Legacy Brands May Have Given Up Competing With China’s Cheap EVs

Very few industry experts could have predicted how quickly Chinese car manufacturers would come to dominate the world of affordable EVs. In less than a decade, EVs from the People’s Republic have become industry leaders, so much so that legacy carmakers had largely ceded the affordable car market to the Chinese, or so says a new report out of the UK.

The report from the FIA Foundation, which is the charity arm of the FIA, notes that the rapid rise of small and affordable EVs from China are prompting European and British car manufacturers to shift focus to larger and higher-end vehicles.

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“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,” the report says. “It means China has evolved from a net importer of passenger cars before 2020 to the world’s largest net exporter.”

According to the report, this has led to European and British brands to cede the affordable car market. Of course, whether or not the car manufacturers themselves would admit this remains to be seen.

While EVs from China have been kept out of the US, they are becoming an increasingly common sight in the UK. Of all the new cars sold in the UK in June, roughly 19,000 of them were made by Chinese brands like MG, BYD, Omoda, and Jaecoo. Currently, there are more than 130 EV models available in the country and of these, 33 are priced under £30,000 ($40,200).

The surge in Chinese EVs could help to combat the swelling size of new vehicles. As noted by the chief executive of the RAC Foundation, Steve Gooding, “Our love affair with Fiesta-sized cars might swiftly be rekindled if more small, keenly priced EV models start coming to market,” he told Yahoo!.

Incentives from the nation’s Department of Transport could help to increase the number of small EVs on local roads. Discounts of up to £3,750 ($5,025) are available for new electric cars and more than 100,000 addition public charging locations are in the works.