BYD Launches Cheapest Electric Vehicle in UK as Chinese Carmakers Battle for Affordability
The UK’s electric vehicle market has just gotten a significant boost with the launch of BYD’s newest model, the Dolphin Surf, priced at £18,650. This compact electric vehicle is set to take on the European market, particularly in the UK, where it will compete with other affordable EVs from established brands.
According to a report by the Financial Times, the Dolphin Surf is the British equivalent of BYD’s popular Seagull hatchback, which is priced at less than £6,000 in China. The launch of this new model marks a significant move by BYD, the leading electric vehicle maker, to take on the European market.
"Compact cars are the next frontier for electrification in Europe," said Stella Li, BYD’s executive vice-president, at a recent launch event in Rome. "The electric transition has been slower for small cars than for bigger sport utility vehicles." As reported by the Financial Times, Li noted that the compact car segment has remained stubbornly reliant on the internal combustion engine.
The International Energy Agency reported that of the 360 EV models available in Europe last year, only 33 were in the small car segment. However, an additional 23 compact models are expected to be launched this year. The Financial Times cited data from the International Energy Agency, highlighting the slow adoption of electric vehicles in the compact car segment.
Compact cars have taken longer to shift away from petrol engines due to thin profit margins and the difficulty of making them both affordable and profitable with the high price of batteries. However, Chinese brands have adopted a pricing strategy in Europe that is more restrained than in their home market, especially with Brussels imposing higher tariffs on imports of Chinese-made EVs since last year.
The Financial Times reported that BYD’s expansion into all car segments in Europe is set to accelerate its overseas growth. The market share of BYD and other Chinese brands in the UK and on the continent has grown from 2.9 per cent in the first quarter of 2024 to 4.8 per cent in the first four months of 2025, according to Schmidt Automotive Research.
Analysts say there is more room for prices to come down for smaller electric cars as western carmakers use cheaper lithium iron phosphate batteries to compete against Chinese rivals, which are increasing local production in Europe to avoid tariffs. "Once they start coming to the market, we will see price deflation," said automotive analyst Matthias Schmidt, as quoted by the Financial Times.
The UK, which has not imposed higher tariffs on Chinese EVs, now accounts for nearly a third of all Chinese-brand models entering western Europe. According to UK online marketplace Auto Trader, stocks of Chinese EVs for sale between January and April increased tenfold year-on-year, with more than 3,300 cars for sale. That represented nearly 3 per cent of new car stock for sale on the marketplace compared with 0.2 per cent a year earlier.
As reported by the Financial Times, some Chinese car executives fear the bruising price war in their home market could spill over into Europe. However, rising trade tensions between China and the EU are seen as changing the pricing dynamics in Europe.
In conclusion, the launch of BYD’s Dolphin Surf in the UK marks a significant move in the European electric vehicle market. As the market continues to evolve, it will be interesting to see how Chinese brands, including BYD, navigate the complex pricing dynamics in Europe. With increasing competition and new models being launched, consumers are likely to benefit from lower prices and innovative technologies.
