Dealership Digest

Chinese brands boost UK electric vehicle market

By Madison R ·
Chinese brands boost UK electric vehicle market - electric vehicle
The UK’s EV Readiness Index scored 60/100 in the third quarter of 2026.

The UK’s electric vehicle (EV) market is becoming more appealing to drivers due to increased competition from Chinese brands, according to the AA. The motoring organisation’s EV Readiness Index, which assesses the favourability of conditions for drivers to switch to EVs, has reached its highest level yet, with a score of 60/100 in the third quarter of 2026.

This score is based on factors such as vehicle purchase prices, charging and insurance costs, the availability of charging, and AA roadside callout and repair statistics. The index has increased from 58.8 in the second quarter, indicating improving conditions for EV adoption.

Chinese Brands’ Impact on the UK EV Market

Chinese brands accounted for 15.8% of UK new vehicle sales in August, up from 5.5% a year earlier. A survey of AA members found that 47% believed the increased competition from these brands would benefit buyers. However, 42% of those surveyed said they would not consider buying a Chinese-made car.

Despite this, only a quarter of respondents believed established brands offered better quality than Chinese manufacturers. Dean Keeling, managing director of roadside services at the AA, noted that Chinese manufacturers are bringing sophisticated and competitively priced vehicles to market, which should make the established automotive industry take notice.

Keeling stated, “China has demonstrated that the transition to electric vehicles can happen at extraordinary pace when government, manufacturers, infrastructure and consumers move in the same direction.” He emphasized the importance of creating conditions that make consumers want and are able to buy electric vehicles, rather than simply imposing tougher sales targets.

The arrival of new manufacturers is also changing the traditional automotive model, with EVs requiring less conventional servicing and more work being carried out by mobile technicians. The AA, with its EV-trained patrols and mobile mechanics, can help provide the necessary roadside, maintenance, and aftersales infrastructure for these new entrants and their customers.

Market Trends and Statistics

The increased competition in the market has led to a slight fall in the average new EV purchase price compared to equivalent petrol cars. EVs are now 25% more expensive than petrol cars, down from 26% in the second quarter. In the used market, the gap has almost disappeared, with EVs only 1% more expensive than petrol cars.

Related Post: Chinese Electric Cars Offer More EV for Less Cash

Home charging costs remain favourable, with the cost of electricity obtained via home chargers 66% cheaper per mile than petrol. However, ultra-rapid public charging remains around 15% more expensive than petrol. Breakdown statistics are also favourable, with 88.1% of EV callouts attended by AA patrols being fixed at the roadside, compared to 83.5% for petrol vehicles.

The improvement in the EV Readiness Index coincides with the UK new car market share taken by EVs reaching 29.8% in August, according to the Society of Motor Manufacturers and Traders (SMMT). The AA notes that realistic targets, certainty, and a clear direction of travel are needed, particularly as the UK Government reviews its Zero Emission Vehicle (ZEV) mandate.

Edmund King, president of the AA, said, “The EV Readiness Index reaching 60 is another significant milestone. It shows that the conditions for going electric are steadily improving, but a score of 60 also tells us that we aren’t there yet.” He emphasized the need for targets to be realistic, achievable, and supported by consumer demand.

The UK Government’s review of its ZEV mandate is ongoing, and the AA is calling for a clear direction of travel to support the transition to zero-emission vehicles. As the market continues to evolve, it is likely that the role of Chinese manufacturers will remain significant, with their increasing presence in the UK market driving competition and innovation.

With the UK’s EV market share expected to continue growing, the AA’s EV Readiness Index will remain an important indicator of the country’s progress towards electrification. As the index continues to rise, it is likely that more drivers will consider making the switch to electric vehicles, driven by improving conditions and increasing competition in the market. The average new EV purchase price is now £28,600, down from £29,300 in the second quarter.

Future of Fleet

An event for the fleet industry is scheduled to take place on 6-7 October 2026, with a focus on the transition to zero-emission vehicles. The UK Government is currently reviewing its ZEV mandate, with the AA calling for realistic targets and certainty.

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