Peter Vosper: Will the Chinese change the face of the global motor industry?

There has been much in the news about the rise of the Chinese brands in the global motor industry, but the news that BYD had overtaken Tesla in 2024 to become the world’s best-selling maker of electric vehicles, and since it entered the European markets two years ago, has grown faster than any new brand before, which is concerning European car manufacturers.

“We want to be number one in the British market within 10 years,” says Steve Beatie, Sales and Marketing Director for BYD UK. Their new Dolphin Surf is available for under £19,000 and is expected to attract a new wave of electric car buyers in the U.K.

It may not be as easy as BYD suggests. There are expected to be no fewer than 10 Chinese brands in the UK by the end of the year. Chery, who are second to BYD in China, have already arrived in 2024 with their Omoda and Jacoo products but will bring two cars from the Chery brand under £20,000 by the end of 2025. Stellantis are also selling their Leap (a joint venture with a Chinese partner), and Ora have a dealer set-up across the UK. Xpeng, Zeekr, Nio and Changan are also poised to add to the choice.

MG, Volvo and Lotus are already well known in the UK and are recognised for quality and competitively priced products. MG is a British company, but most of their product is built in China, although there are rumours, they may set up an assembly plant here. MG has two cars in the top ten best seller chart this year and has over 4 per cent of the market.

“Chinese brands are making massive inroads into the European market,” says David Bailey, professor of business and economics at Birmingham Business School. “[China has] a huge cost advantage through economies of scale and battery technology. European manufacturers have fallen well behind,” he warns. “Unless they wake up very quickly and catch up, they could be wiped out.”

However, this could be good news for consumers, leading to high-quality and affordable electric cars, and the rivalry with the USA has turned their attention to Europe. Some experts are concerned Chinese vehicles could represent a security risk from hackers and third parties, but this is unlikely to change their approach and the consumers interest unless European manufacturers provide competitive products quickly.

They need to satisfy first-time buyers and those who need cars for work, family visits, and generally getting around. Since the demise of many small, efficient cars, new products such as the Renault Clio and Fiat Panda need to become more available. Many buyers would like to change their cars, but the cost is a barrier. One the Chinese may provide the solution for.