Prices of brand new electric cars could plummet this year as Chinese car brands intend to flex their muscles to win over British buyers.

Auto Trader predicts a fierce price war will occur this year with carmakers slashing prices as more models from Chinese manufacturers arrive on UK shores.

Making the prediction in its latest Road to 2035 report, Auto Trader added it expects Chinese carmakers to hold a sixth of the UK electric car market by the end of the decade.

Brits have little awareness of brands such as BYD, GWM Ora and Nio with recognition levels ranking below 5%, but it is growing, said Auto Trader.

Traditional carmakers which sell a combination of petrol, diesel, hybrid and electric models, will likely be pressurised into cutting prices of EVs to both compete with Chinese brands and to meet strict new rules introduced earlier this month. Under the new ZEV mandate, at least 22% of new cars sold be each manufacturer must be electric. 

The report also highlighted the gap between prices of certain models in China and the UK, with cars such as the BYD Dolphin and GWM Ora 03 being significantly cheaper in their home market. The Dolphin is advertised at a starting price of £13,000 in China compared with a price of £25,000 in the UK, while the 03 is priced around £19,000 cheaper in China compared to Britain.

Auto Trader's Ian Plummer said: “The rise of China in electric cars will only add to that pricing pressure as they have the firepower to grab UK market share. Drivers considering taking the first step on their electrified driving journey have never been in a better position to benefit from falling electric vehicle prices than in 2024.”

Brands like BYD's arrival in UK is set to spark a price war