The Brits snapping up cheap Chinese EVs – ‘better than BMW’

When doctor Dimitar Ormanov traded in his Honda Civic for a new motor at a Milton Keynes dealership two years ago, he envisaged driving away a high tech Tesla. But after encountering Chinese manufactured BYDs on the forecourt – for a fraction of the cost of Elon Musk’s electric brand – he knew exactly in which direction he was headed.

Two years on he has no regrets about his Far Eastern purchase. “I am happier driving Chinese cars than Volkswagen, Mercedes or BMW,” he says today. “Chinese cars are really well made.” Dimitar is in good company. This week, Chinese car maker BYD announced the UK had become its second biggest market after sales here surged by 880% in September compared with one year earlier.

The company sold 11,271 cars in the UK last month, placing it above Land Rover, Mini and Tesla. In comparison, Vauxhall registered 12,120 cars last month, while Skoda sold 11,925 cars and Volvo sold 11,570 cars. Surely it won’t be long before BYD overtakes them, too.

It’s been a breakthrough year for Chinese cars in the UK, with brands such as BYD, Omoda and Jaecoo cutting through to achieve genuine sales success in what experts believe is a major threat to Western manufacturers. But what is their appeal? A recent study shows seven in 10 people are open to the idea of buying a Chinese model.

And Dan Aleksandrov is one BYD owner who believes he knows why. His Atto 3 is one of several BYDs to pop up around his neighbourhood in Peterborough in recent weeks along with the Omoda, made by Chinese manufacturer Chery.

Showing off the car’s top-performing features to the Express, Dan explains that China has become a leader in so-called “Vehicle-to-Load technology”, which allows road users to top up anything from camping appliances to other electric vehicles (EVs) without access to a plug. His car runs up to four sockets and even has the capability to top up my own Renault 4 by connecting one simple cable.

Dan also points out the positives of BYD’s Lithium Iron Phosphate (LFP) “blade” batteries that allow owners to charge their cars safely to 100% capacity. The technology is understood to be less susceptible to degradation from 100% charges unlike most rivals whose manufacturers urge their drivers to charge their EVs to around 80% to preserve battery life.

Then there is the cost. BYD’s latest Atto 2 model starts at just under £31,000, which is almost £15,000 cheaper than the Tesla Model Y at £45,000. And that’s clearly paying off with BYD selling 24,333 vehicles across its model range this year – compared with 26,951 sales of Teslas.

Mike Brewer, renowned second hand dealer and host of TV series Wheeler Dealers, predicts Chinese models will force Western car firms to reduce their prices down the line. “It’s encouraging that on a consumer level at least people will get themselves into a decent, nice car now at a good price,” he says.

Chery’s bosses have reassured its customers that the company’s models are of “quality” stock, despite their budget price tags. According to them, their Chinese manufacturers  can offer cost efficiencies in their supply chains due to the high production numbers involved.

In addition, BYD has a “fully integrated supply chain” and an “in-house battery” development, which allows them to sell vehicles much lower than Western brands. The price tags may be cheap, but keeping the car on the road could yet be a concern. Dimitar said he found the cost of servicing his BYD was around £120 more than his previous petrol and diesel vehicles.

Then there is the issue of repairs, with some road users reportedly finding delays in components required for their broken down cars.

Andy Turbefield, head of quality at Halfords Autocentres, said: “Access to parts may be an issue until a suitable supply chain can be set up in the UK. It can take six to eight weeks for parts to arrive from China via ship – more if trade routes are further disrupted by world events.

“However, manufacturers such as BYD now have their own ships to transport cars and parts to the EU and UK. Established carmakers such as Stellantis are setting up Chinese vehicle factories in Europe, Leapmotor being one, to ensure that they comply with rules of origin regulations. Several are now working directly with Chinese OEMs.”

However, the delays in getting parts may be leading to problems with insurance cover. Dimitar claims “no one” was insuring BYDs when he first got the keys two years ago. He eventually secured a policy but a year later was told the firm was no longer underwriting BYD models, sending him back to the drawing board.

Dan has also experienced issues securing cover over the last year, but stressed his prices have since come down. Both men are not alone in their experiences.

The BYD Seal is one Chinese model that consumers are said to have had trouble insuring. BYD told one news site last year that it was “taking this matter very seriously and working with the relevant parties, including Thatcham Research [the UK’s only not-for-profit automotive risk intelligence organisation], to find a long-term solution”.

Ben Townsend, head of automotive at Thatcham Research, said the issue was not the parts themselves but companies’ “insufficient knowledge about how the UK repair and insurance market works”. The other problem appears to be a clash of cultures.

In China, low labour costs mean only slight damage would see mechanics replace the whole side panel. But the high labour costs required to complete this job in the UK would see the car written off as unviable.

LV, one of the companies Dimitar admitted struggling to secure cover with in the past, admitted there were some issues. The company told the Express it was “still assessing the insurance risk” as models were relatively new to the market. Another insurer, Hastings Direct, said there were “many factors which influence the offer of insurance and the price”.

Although range anxiety is less of a concern than it once was for electric vehicles, limits on mileage still appear to be one of the major stumbling blocks around EV adoption.

In a YouGov poll of 1,005 UK drivers, 71% of non-EV holders said the fear cars could run out of charge mid-journey was their biggest worry. Tesla tends to have higher mileage than BYD models with Dimitar admitting he has been caught out on more than one occasion when driving home.

“I have to stop at Cambridge services just to make sure I’m going to get home safely. My wife bought a Tesla Model 3 and you don’t have to do that.” However Jaecoo and Chery’s Super Hybrid System is bucking the trend with estimated ranges of more than 700 miles proving that China won’t be left behind on range.

Another concern is depreciation of values. This has been a general worry for the electric car market, with valuations often falling far faster in the first few years of a vehicle lifespan than traditional petrol or diesel models, partly as rapid increases in technological development outdate current EV models.

Previous data has suggested the Atto 3 loses around 51% of its valuation over several years, dropping from £37,640 to £19,196 after 36,000 miles on the road. Brand awareness is also an issue when it comes to price, with Chinese firms yet to have reputations of major marquess such as Porsche or Ferrari who can continue to demand high fees for their second-hand models.

Dimitar admits it is a worry, but stresses he has plans to adapt to ensure he is not short-changed. Over-the-air updates and a long battery duration means the lifespan of the latest EVs from China will be much longer than combustion models from decades gone by. Concerns around Chinese interference and privacy has become a major issue in recent years with phone company Huawei banned from the UK back in 2023.

The US has banned certain hardware and software made in China from being installed in cars over safety risks. Meanwhile, UK Government and military staff have been warned of the danger, with employees at RAF Wyton instructed to park cars with Chinese components at least two miles away due to fears of sat-nav surveillance.

A recent poll found that two-fifths of motorists aged 55 and over are concerned by data security and privacy when buying Chinese products. Neither of the two owners we spoke to had valid concerns about this issue, however.

While Dimitar remains an enthusiastic supporter of BYD, he still wouldn’t rule out a Tesla in the future. “It’s got a unique charging network which is very good,” he says. “These guys from China need to take that onboard. But overall the cars are really good. I’ve been driving it and no problem. I’ll call you when the first MOT comes up!”

In a statement to the Express, BYD said: “BYD has carried out extensive benchmarking across the industry and we aim to offer competitively priced servicing for our cars. BYD has its own parts warehouse in the UK, supported by DHL, and therefore has strong availability on the majority of BYD parts.”

On insurance, BYD added: “We did become aware of an issue when the brand launched in the UK in 2023, however we quickly took steps to ensure the problem was resolved as a priority. This included working closely with Thatcham Research to provide insurance companies with the necessary information and data needed to provide insurance for BYD cars. We also now have a network of authorised repairers which makes it even easier to get affordable insurance for BYD vehicles.

“A key advantage of the BYD Blade Battery is durability, which means when charging the car will regulate the amount of power going to the battery to protect its long-term health.”