The first modern Chinese EV to reach UK roads in meaningful numbers was the MG ZS EV, which launched in 2020. The MG4, BYD Atto 3, and BYD Dolphin were introduced between 2022 and 2023. That means the oldest Chinese EVs in the UK market are now four to six years old, the used market has over 45,000 Chinese EVs available secondhand, and professional residual value analysts at CAP HPI, Cox Automotive and Indicata have published their first substantive reports on what these cars are actually worth at resale. For the first three years of Chinese EV sales in Europe, depreciation figures were estimates. Now they are real.
The picture that emerges from the data is nuanced. It is not as bad as the critics predicted, and it is not as good as the sticker price advantage might lead buyers to assume. Understanding it properly requires separating three groups of cars: MG (which has a longer track record and higher UK name recognition), BYD (the largest brand with the most used-car volume), and every other Chinese brand (where the data is thin, and the risk is genuinely harder to quantify).
The Numbers
Three-year depreciation: Chinese EVs vs the broader market, UK 2026
| Brand / Model | Retained after 3 yrs | Lost after 3 yrs | Source |
| Tesla Model 3 / Model Y | 48-55% | 45-52% | Cox Automotive / CAP HPI |
| Porsche Taycan | 45-52% | 48-55% | Cox Automotive |
| BMW i4 / iX | 40-46% | 54-60% | Depreciation Calculator UK |
| Average UK petrol car | ~53% | ~47% | Cox Automotive |
| Average UK EV (all brands) | ~39% | ~61% | Cox Automotive / Indicata |
| MG4 / MG ZS EV | 22-35% | 65-78% | CAP HPI / Depreciation Calc. |
| BYD Atto 3 / Seal | ~35-42% | ~58-65% | DriveAuthority / CarCostCheck |
| Other Chinese brands (est.) | ~22-30% | ~70-78% | CarWikiHub / CarHealth |
The headline finding is stark. According to Depreciationscalculator’s April 2026 analysis using Cox Automotive and CAP HPI data, Chinese-brand EVs, including MG, BYD, and Ora, are currently retaining only 22 to 35 percent of their original value after three years. That compares with 48 to 55 percent for the Tesla Model 3 and around 53 percent for the average UK petrol car. A buyer who paid £29,995 for an MG4 Long Range in 2023 and is now selling it could expect a used-car market value of approximately £6,600 to £10,500 in favourable conditions. A Tesla Model 3 buyer who paid a similar price in the same year would expect roughly £14,400-£16,500.
The absolute cash loss, however, is where the picture shifts in favour of Chinese EVs. A buyer who paid £29,995 for an MG4 and loses 70 percent of that value will lose approximately £20,997 over three years. A buyer who paid £44,990 for a Tesla Model 3 Long Range in 2023 and retains 52 percent loses approximately £21,595. The percentage gap is wide. The cash gap is narrow. For buyers comparing total cost of ownership rather than just the depreciation percentage, the lower purchase price of Chinese EVs offsets much of the residual-value disadvantage.
Depreciation percentages mislead. A Chinese EV losing 70% of its £30,000 purchase price costs less in absolute terms than a Tesla losing 48% of its £45,000 purchase price. The maths changes the conclusion.
Why Chinese EVs Depreciate Faster
Aggressive new-car pricing creates a moving floor
The most structurally important cause of depreciation in Chinese EVs is unique to this category of cars. Chinese cars are generally cheaper than their Western counterparts, and when BYD lowers the Dolphin’s entry price, the used-car market value of existing examples drops immediately. There is no equivalent mechanism for a Toyota or a BMW. Chinese manufacturers rely on aggressive pricing to build market share, but each new price reduction directly undermines the residual value of the cars already on UK roads. BYD cut prices on several UK models in 2024. MG has done the same. Every cut is a rational business decision and a simultaneous hit to used-car values.
Brand familiarity takes time to build
Used-car buyers are significantly more conservative than new-car buyers. A new-car buyer with a strong financial case can be persuaded to try an unfamiliar brand. A used-car buyer choosing between a three-year-old MG4 and a three-year-old Volkswagen ID.3 at similar prices will, in most cases, choose the ID.3 because the resale risk feels lower. CAP’s December 2025 analysis for Parkers describes this buyer resistance clearly: ‘Where scepticism remains is in the used market, and that buyer resistance is not unreasonable. Traditional used-car buyers care deeply about long-term support, parts availability and resale value, and those things take time to earn trust.’ The market is not being irrational. It is pricing in a risk premium for unfamiliarity that will reduce as track records build.
The broader EV depreciation problem compounds it
Chinese EVs are not depreciating in isolation. The overall UK used-EV market is under pressure. Indicata’s Q1 2026 Market Watch report identifies the ZEV mandate as the single biggest risk to EV residual values because it forces manufacturers to aggressively discount new EVs to hit sales targets, which immediately drags down equivalent used values. Used EV prices fell nearly 10 percent year-on-year into 2026 according to Electric Car Scheme data. Chinese EVs are absorbing both the general EV depreciation pressure and the brand-specific premium on top of it.
What is improving and why?
The data is not uniformly negative, and the trend line matters as much as the current position. Cox Automotive data shows that EVs under 12 months old retained approximately 56 percent of their original cost new by October 2025, up from 52 percent in January of the same year. That nine-month improvement suggests the steepest phase of EV depreciation may be passing. Used-EV supply is still high, but demand is growing as more buyers become comfortable with the technology and as charging infrastructure improves.
For Chinese brands specifically, MG has a meaningful advantage over newer entrants. CarHealth’s January 2026 report notes that MG benefits from volume: there are enough used MG EVs on the market that buyers can compare multiple examples and dealers can price them with confidence. The MG4, which has been on UK roads since 2022, is beginning to develop the kind of used-market depth that supports more stable residual values. BYD is building toward the same position but is two years behind MG in market maturity.
Battery warranty transferability is the single specification that most influences used-car values for any EV brand. MG’s seven-year, 80,000-mile warranty transfers to used-car buyers. BYD’s eight-year, 155,000-mile battery warranty does the same. A used MG4 or BYD Dolphin purchased with several years of battery warranty remaining is a meaningfully lower risk proposition than the same car with warranty expired. According to AutoHit’s depreciation guide, models with transferable long warranties and over 250 miles of real-world range consistently outperform at resale. Both the MG4 and BYD Seal meet those criteria.
What this means for buyers
If you are buying new and planning to keep the car for five years or more, current Chinese EV depreciation rates are largely irrelevant. You are not selling into the used market at the trough. The sticker-price savings are real from day one, the running-cost advantage compounds over the ownership period, and by the time you sell, the residual-value landscape will have shifted as brand familiarity builds. For a detailed breakdown of which models offer the best value at each price point under these conditions, see our guide to the best Chinese EVs under £35,000 in the UK.
If you are buying on a three-year PCP deal, the depreciation picture changes the calculation materially. The finance company sets a Guaranteed Future Value at the start of the contract, and for Chinese EVs that GFV is set conservatively to reflect current residual value uncertainty. The monthly payment advantage of a cheaper purchase price can be partially offset by a lower GFV, which effectively builds the depreciation risk into the monthly cost rather than making it visible at point of sale.
If you are buying used, the current depreciation situation is straightforwardly in your favour. A three-year-old MG4 Long Range that sold new for £29,995 can be found for £6,600 to £10,500. That is one of the most cost-efficient ways to access a five-star Euro NCAP-rated electric car in the UK. Check the battery warranty status, confirm the service history with an approved dealer, and use a car history tool to verify no outstanding recalls. The main read-through from CarHealth’s buyer guidance is straightforward: used Chinese EVs require more due diligence than used Japanese or German equivalents, but reward that diligence with exceptional value. The risk is not in the car. It is in buying without checking.
Editor’s Take
The depreciation picture for Chinese EVs is the most legitimate concern a prospective buyer can raise, and it deserves a straight answer rather than deflection. The straight answer, based on the available data, is this: Chinese EVs depreciate faster than Teslas, faster than Kias, and faster than the European mainstream. That is real, and it matters to buyers on short-term financing terms.
It does not make them bad purchases. The lower sticker price absorbs much of the absolute cash loss on depreciation. The running costs remain lower than petrol equivalents over any ownership period that involves meaningful home charging. And the trajectory is clearly toward improvement as these brands build years of UK and European market presence, used-car depth and ownership track record. The MG4 that was an unknown quantity in 2022 is becoming a known quantity in 2026. BYD is three years behind that curve. Every other Chinese brand is even further back.
Hillary started his automotive writing journey at HotCars, and has written for CarNewsChina, GlobalSUV, and many other top auto blogs.
He loves to read, play chess, and supports Liverpool during the weekends