The Great Divide: Why Chinese Electric Cars are So Much Cheaper Than in the UK

The electric vehicle (EV) revolution is in full swing, but not all countries are experiencing it in the same way. While China has become the world's biggest exporter of cars, with a booming domestic market, consumers in the UK are facing a very different picture. The cost of an electric car in the UK is, on average, more than twice the price of one in China. This disparity isn't just a matter of currency exchange; it's a reflection of deeper economic and market factors that have a significant impact on affordability for the average consumer.

According to data from global automotive experts, the average new electric car in China costs around £27,153, while the average price in the UK is about £62,000. This massive difference is even more stark when looking at specific models. For instance, the BYD Dolphin is available in China for roughly £13,000, but its UK starting price is around £25,000. Similarly, the GWM ORA 03, known as the Funky Cat, costs about £12,000 in China but sells for £31,000 in the UK.

To truly understand this price gap, we need to compare it to the average earnings in each country. In 2024, the average annual salary in the UK is approximately £37,430. In China, the average yearly wage is 124,110 CNY, which converts to about £13,500.

When we put these figures side-by-side, the contrast in affordability is staggering.

While it may seem that the Chinese EV is a larger percentage of the average salary, the entry-level cars tell a different story. China has a wide range of incredibly cheap EVs that are not available in the UK. For example, the Wuling Hongguang Mini EV starts at just $4,000 (around £3,200). A Chinese worker earning the average salary could potentially purchase a basic EV for a fraction of their annual income.

So, why are these prices so different? A key reason is the significant government support for the EV industry in China, with state authorities providing an estimated £57 billion in incentives to domestic companies. This, combined with a far cheaper cost of labour, allows manufacturers to produce vehicles at a much lower price point. Additionally, logistical costs and high tariffs in the UK add thousands of pounds to the final price. The UK imposes a 10% tariff on imported Chinese-made EVs, a cost that is passed on to the consumer.

The result is a market where Chinese consumers can purchase an electric car for 8% less than the most affordable gasoline-powered model, while UK buyers must pay 92% more for the cheapest EV compared to the least expensive combustion car. This "great divide" highlights the challenges faced by the UK in its transition to a fully electric vehicle market, as it struggles to compete with the affordability and scale of Chinese production.

There is another concern that is circulating regarding the Chinese electric vehicles, this relates to security – this was recently highlighted in an article written by the BBC:

Security, spyware and hacking concerns

But irrespective of how desirable Chinese cars are in comparison with European rivals, some experts believe we should be wary of them – for security reasons.

Most modern vehicles are internet-enabled in some way – to allow satellite navigation, for example – and drivers' phones are often connected to car systems. Pioneered by Tesla, so-called "over-the-air updates" can upgrade a car's software remotely.

This has all led to concerns, in some quarters, that cars could be hacked and used to harbour spyware, monitor individuals or even be immobilised at the touch of a keyboard.

Earlier this year, a British newspaper reported that military and intelligence chiefs had been ordered not to discuss official business while riding in EVs; it was also alleged that cars with Chinese components had been banned from sensitive military sites.

Then in May, a former head of the intelligence service MI6 claimed that Chinese-made technology in a range of products, including cars, could be controlled and programmed remotely. Sir Richard Dearlove warned MPs that there was the potential to "immobilise London".

Beijing has always denied all accusations of espionage.

A spokesperson for the Chinese embassy in London says that the recent allegations are "entirely unfounded and absurd".

"China has consistently advocated the secure, open, and rules-based development of global supply chains," the spokesperson told the BBC. "Chinese enterprises operating around the world are required to comply with local laws and regulations.

"To date, there is no credible evidence to support the claim that Chinese EVs pose a security threat to the UK or any other country."

Source BBC Article -