Chinese electric vehicles have made a splash in Europe with attractive prices and features, but new data shows their resale values are falling much faster than the industry average. This trend is raising concerns among buyers, leasing companies, and manufacturers alike.
Rapid Depreciation Hits Chinese EVs
A recent study from Germany’s DAT vehicle valuation group reveals that Chinese EVs and plug-in hybrids are depreciating at twice the rate of the industry average in Germany. This rapid loss in value is causing issues for owners, who are seeing lower trade-in offers, and for leasing companies, which are finding returned vehicles worth far less than anticipated.
Martin Weiss from DAT commented that “it is not enough to launch a good product.” He emphasized that brands also need strong support systems to maintain used buyer confidence.
Resale Value Comparison Across Europe
The challenge is not limited to Chinese brands. According to Indicata figures quoted by the Financial Times, the average three-year-old EV in the UK was worth just 38 percent of its original value as of last month. In Germany, France, and Spain, the figure was slightly higher at 46 percent.
For comparison, a same-age petrol car in the UK retained 45 percent of its value, while a hybrid kept 51 percent. These numbers highlight the particular pressure on EV resale values, especially as new models are introduced with significant discounts.
Competitor Comparison
Chinese EVs are not alone in the value race. Kia, for example, has narrowed its price premium over Chinese rivals to 15-20% and offers a well-established dealer and service network in Europe. The MG4 EV Urban, priced at £23,495, is promoted as a value-for-money alternative with a European-style hatchback design.
These competitors may offer more stable resale values and established support, which could appeal to buyers concerned about long-term ownership costs.
Regional Availability and Market Context
Chinese EVs have expanded rapidly in Europe, with their market share rising to around 7% in the first half of 2025, up from about 2% in 2022. However, overall car sales in Europe fell by 4.6% year-on-year in the first half of 2025, totaling 8,962,000 units.
The Jaecoo 7, a Chinese model, recently topped the UK sales chart for the first time, reflecting the growing presence of Chinese brands in the region.
Why this matters
The rapid depreciation of Chinese EVs in Europe affects not only private owners but also leasing companies and manufacturers, who may face unexpected financial losses. The data suggests that while initial purchase prices may be attractive, long-term costs could be higher than anticipated due to weak resale values.
With Chinese brands gaining market share but struggling to maintain used values, buyers should carefully consider the total cost of ownership, including potential trade-in or resale scenarios.
What this means for buyers
Prospective buyers of Chinese EVs in Europe should weigh the initial savings against the likelihood of significant depreciation. Comparing options like Kia’s EV lineup or the MG4 EV Urban, which may offer stronger resale values and established support networks, could help minimize long-term costs.
Those considering a new EV purchase should also monitor regional trends and be aware that frequent updates and aggressive discounting may continue to impact used values across the market.
Key Specs
- Depreciation Rate (Chinese EVs, Germany): Twice the industry average
- 3-Year-Old EV Value (UK): 38% of original value
- 3-Year-Old EV Value (Germany/France/Spain): 46% of original value
- 3-Year-Old Petrol Car Value (UK): 45% of original value
- 3-Year-Old Hybrid Car Value (UK): 51% of original value
- Chinese OEM Market Share in Europe (H1 2025): 7%
- Total Car Sales in Europe (H1 2025): 8,962,000 units
Source
Images sourced from: evsearch.ca, dreamstime.com, recharged.com
