Knock-on effects from a price war currently taking place in China’s EV market could include pressure on used values in the UK, according to Indicata.
The analysis company said that Chinese manufacturers were facing oversupply problems domestically, which could see them sending more cars to Europe, and in particular to the UK, which has no additional tariffs on Chinese EVs.
While in the short term this could see UK buyers benefit from cheaper new EV prices, Indicata said pressure on used vehicle residual values could eventually result.
Indicata global business unit director Andy Shields said: “Chinese OEMs are facing massive oversupply and intense competition in their domestic market.
“They need to find markets outside of China to sell their vehicles, and Europe represents their most viable and profitable export destination.
“We’re looking at a potential shift in market dynamics. The excess supply of new Chinese products has the potential to continue increasing pressure on used vehicles in Europe because of lowering new car list prices and excessive supply.”
