The story with hybrid and plug-in hybrid cars is similar to the one with EVs. Chinese cars offer better residual values, but on significantly lower average prices.
| Fuel type | Brand ownership category | Avg. OTR price (£) | Avg. residual value (% of OTR) |
| Electric | Chinese | £38,647 | 44.57% |
| Chinese-owned | £56,188 | 40.59% | |
| Non-Chinese | £55,827 | 43.41% | |
| Plug-in Hybrid | Chinese | £35,159 | 46.68% |
| Chinese-owned | £65,798 | 45.56% | |
| Non-Chinese | £75,284 | 44.94% | |
| Petrol | Chinese | £28,311 | 48.27% |
| Chinese-owned | £59,981 | 45.59% | |
| Non-Chinese | £52,662 | 45.86% | |
| Hybrid | Chinese brands | £26,778 | 48.71% |
| Chinese-owned | £25,995 | 45.03% | |
| Non-Chinese | £45,277 | 47.84% |
China’s assault on the premium car market
Although Chinese newcomers have targeted the cheaper, volume end of the market very successfully up to this point, that is far from the extent of their ambitions. We are starting to see more models from China aiming to compete with premium European marques, and this could present new challenges on residual values.
The likes of Denza, Xpeng and MG’s IM sub-brand are already selling cars in the UK, but volumes are too low to be reflected in this predicted future value data. Selling higher priced cars in premium sectors, where desirability and brand equity carry more weight, may prove to be a tougher task for the Chinese.
The data gives some insight into this, because the ‘Chinese-owned’ brands segment includes models from Volvo, Polestar, Smart and Lotus; the established brands Geely has assembled to challenge in the premium car market. Electric cars from the Chinese-owned brands are 45 per cent more expensive than the average price of cars from Chinese domestic brands, with four per cent lower retained values.
We are already seeing established European and Japanese brands emphasising their heritage and exploring retro design themes as they try to underline their points of difference. Of course, technology is also hugely important in the upper echelons of the market, and here Chinese models may have an edge. In the end, as always, the market will have the final say.
Don’t miss the best of Auto Express on Google! Make us a preferred source. Click here…
