An electric car price war is tipped to erupt this autumn as Chinese manufacturers start selling electric cars in the UK.
Lookers PLC (LSE:LOOK) is looking to satisfy the UK's growing demand for electric vehicles (EVs) with a range of Chinese models, as are other UK car dealers such as Vertu Motors (AIM:VTU), Pendragon Group (LSE:PDG), Caffyns PLC (LSE:CFYN) and Marshall Motor Holdings PLC (AIM:MMH).
A sign of things possibly to come is that historic British firm MG is now owned by Shanghai-based SAIC Motor, one of the biggest state-owned car manufacturers in China.
With 3% of the British electric car market, MG already outsells big brands such as Citron, Renault, Honda Motor (NYSE:HMC), and even BMW's Mini.
Only Tesla Inc (NASDAQ:TSLA) and Kia Motors Corp. (OTC:KIMTF) outsell MG in pure electric cars, where the price range starts at £24,000.
Geely, headquartered in Hangzhou, is the Chinese parent company of Volvo, Polestar and Lotus cars, another decent EV seller..
New kid on the block
New kid on the block is the Ora Funky Cat iand set to launch in autumn, taking on its closest competitor, the Mini Electric.
Ora is made by Great Wall Motors, China's leading manufacturer of SUVs and pick-up trucks, and in tandem with another Chinese group, BYD Auto, is reportedly in contact with UK dealer networks regarding the possibility of selling their models before Christmas.
BYD Auto recently dethroned Tesla Inc (NASDAQ:TSLA) as the world's top EV manufacturer, with reports indicating sales grew by 61% to 2.18mln units in its second quarter.
The firm now has its sights set on Europe and has confirmed three new models will be launched in the region prior to the end of 2022 to be showcased at this autumn's Paris Motor Show.
Benelux and Nordic countries will be first with British customers included in the subsequent phase, though only with one of the three vehicles, the company said.
As Ora and BYD - the latter already a player in British electric buses - competition among dealer groups for their business is exp[ected to be fierce.
Lookers said they are pursuing a number of exciting growth opportunities, including new brand partnerships, with Mark Raban, chief executive, saying, "There are new entrants coming from China.
"A number of conversations are going on. We are having a great experience with Polestar [the Swedish electric carmaker] and we all want to represent the new brands."
Price points
Ora Funky Cat is set to undercut the electric Mini and Volkswagen Group (XETRA:VOW) ID3 EV with a price tag of about £30,000, whereas BYD's Atto 3 will cost around £35,000, way less than Volkswagen's ID4 in the segment.
BYD has also indicated it may launch the smallest and most affordable electric models in Britain if customer demand is strong.