Europe’s established car manufacturers should be braced for an electric vehicle (EV) “price war” ahead of an influx of new Chinese brands in 2023 and beyond, according to Grant Thornton.

The accounting and consulting organisation’s head of downstream automotive, Owen Edwards, said that Chinese carmakers were already waging war on their rivals in a trend that was set to accelerate as they increasingly targeted Europe as a region ripe for expansion.

The latest edition of Cox Automotive’s Autofocus industry report pointed out that BYD – launching in the UK this year – was the strongest-performing Chinese OEM in 2022, with EV and hybrid sales up 132% at 1.62m units.

BYD is now the world’s third-largest automotive company by value after Tesla and Toyota. 

Edwards said: “Europe is expected to experience an influx of Chinese brands over the next 12 to 24 months as Chinese EV OEMs supply cut-price product offerings into the premium and mass market, aiming to gain market share quickly.