Chinese electric vehicle manufacturers have achieved a historic milestone in Britain's automotive market, surpassing Western brands in the affordable segment for the first time.

It follows the latest FIA Foundation analysis, which revealed that Chinese companies now command approximately 10 per cent of new car sales in the UK, with this figure expected to rise dramatically over the coming years.

The shift marks a fundamental change in global automotive dynamics with China transitioning from being a net importer of passenger vehicles before 2020 to becoming the world's largest net exporter.

The report detailed how UK and European manufacturers have been lagging behind China in offering budget electric vehicles, instead choosing to concentrate on premium SUVs and larger vehicles with higher profit margins.

Chinese electric vehicles have now accounted for 10 per cent of the UK market share

Meanwhile, market data from June found that approximately 19,000 vehicles out of 191,000 total sales that month came from Chinese brands including MG, BYD, Omoda and Jaecoo.

Chinese manufacturers offer electric vehicles starting from £16,000 for the MG3 and £17,000 for the BYD Dolphin, significantly undercutting Western alternatives.

Jack Cousens, the AA's head of roads policy, attributed the growing market presence directly to these competitive price points.

The organisation's research identifies 33 electric vehicle models currently available below £30,000 in the UK market, with additional "budget-friendly" options scheduled for launch in the coming months.

Jaguar is currently taking a year-long hiatus from UK production to focus on electric vehicles

Industry experts have expressed concern about Western manufacturers' strategic retreat from the budget vehicle segment.

Steve Gooding, chief executive of the RAC Foundation, told The Telegraph: "Our love affair with Fiesta-sized cars might swiftly be rekindled if more small, keenly priced EV models start coming to market.

"But will the auto companies see this as being in their interest, given the higher profit margins they tend to earn on bigger vehicles?"

The FIA Foundation's analysis outlined how China has established dominance across critical areas, including battery supply chains, manufacturing efficiency and software development, securing what the report describes as a "competitive edge" in producing smaller electric vehicles.

The price gap between Chinese and Western electric vehicles has also become a problem, with the UK’s most affordable domestic option being the all-electric Mini, manufactured primarily at BMW's Oxford facility, with prices beginning at £30,000.

Premium manufacturers have positioned themselves even further from the budget market with Range Rover's forthcoming all-electric model, scheduled for 2026, carrying anticipated starting prices between £130,000 and £150,000.

Jaguar's transformation into an exclusively electric luxury brand is set to debut later this year, with models expected to exceed previous price points.

Now, Chinese manufacturers have started targeting the premium segment of vehicle production while maintaining their budget offerings.

The Jaecoo J7 has seen a huge uptake in consumer interest | OMODA AND JAECOO

Mr Cousens highlighted the Jaecoo J5, describing it as resembling "a Range Rover Evoque, but at a fraction of the price." Brands like MG, Xpeng and Genesis have successfully entered the larger vehicle market.

Edmund King, AA president, added that vehicle sizes have increased over two decades across all fuel types, with car brands tailoring their latest offerings to consumer preferences, which could justify the push towards SUV models.

In response to the market changes, a Department for Transport spokesperson stated: "We're investing over £4billion to support both industry and consumers in making the switch to electric, giving drivers the confidence to choose the models that work best for them.

"This includes providing discounts worth up to £3,750 off the cost of a new electric car and rolling out more public charge points with 83,000 now available and over 100,000 more on the way."