Bloodbath in Chinese domestic car market could seep into UK
A ‘bloodbath’ in the Chinese domestic car market could seep into Europe and the UK, according to new research carried out by Indicata.
It has reported that there are now more than 100 different EV brands in China.
This has created a ‘bloodbath’ of oversupply, with Chinese manufacturers having to slash EV prices by up to 34%. Even leading manufacturer BYD cut prices by 25% due to excess inventory.
This could have a significant impact on the UK new and used car market, with many Chinese manufacturers now realising they can sell EVs more profitably in Europe – and particularly the UK.
Massive oversupply
Andy Shields, Indicata’s global business unit director, said: “Chinese OEMs are facing massive oversupply and intense competition in their domestic market. They need to find markets outside of China to sell their vehicles, and Europe represents their most viable and profitable export destination.
“Whilst there are tariffs in place for BEVs in the EU, it’s still possible for Chinese manufacturers to sell BEVs in Europe more profitably than in their home market. The UK market is particularly exposed as there are currently no additional tariffs on Chinese BEVs.”
Chinese EV manufacturers are now targeting 50% of sales from international markets, with exports accounting for 33% of China’s total EV production in the first four months of 2025.
Shields concluded: “We’re looking at a potential shift in market dynamics. The excess supply of new Chinese products has the potential to continue increasing pressure on used vehicles in Europe because of lowering new car list prices and excessive supply.”
