by Rapid Growth of Chinese Electric Vehicles
Chinese car manufacturers are rapidly dominating the world of affordable electric vehicles, which has come as a surprise to many experts. In less than a decade, electric cars from China have become industry leaders, forcing European and British automakers to focus on larger and more expensive models.
Impact on the European and UK Market
According to a report by the FIA Foundation, the rapid growth of affordable Chinese electric vehicles has led to European and British brands effectively abandoning the competitive struggle in the affordable car market. China now accounts for 27% of global passenger car sales and has advantages in battery production, manufacturing efficiency, and software.
China, which now accounts for 27% of global passenger car sales, has gained a competitive advantage in the production of smaller electric vehicles.
Position of Chinese Brands in the UK
In June, around 19,000 new cars sold in the UK were produced by Chinese brands such as MG, BYD, Omoda, and Jaecoo. This accounts for approximately 10% of the total number of new cars sold. There are over 130 electric car models available on the market, 33 of which cost less than £30,000.
Fighting the Trend of Increasing Car Sizes
The growing popularity of Chinese electric vehicles could help combat the trend towards larger new car sizes. Steve Gooding, Director of the RAC Foundation, noted that if more small and affordable electric cars appear on the market, it could revive interest in compact models.
Our love for Fiesta-sized cars could quickly be revived if more small, affordable electric models appear on the market.
Incentives for the Development of Small Electric Vehicles
The UK government is offering incentives to increase the number of small electric vehicles on the roads, including discounts of up to £3,750 for new electric cars and plans to install over 100,000 additional public charging stations.
These changes could significantly impact the structure of the automotive market, promoting the spread of compact and environmentally friendly vehicles. Chinese manufacturers continue to expand their presence by offering technologically advanced and affordable solutions, creating new challenges for traditional automakers. Their successes in the field of electric vehicles demonstrate how quickly global markets can change under the influence of innovation and competition.
