Chinese makers such as BYD are considering a push under their own brand name

Leading car dealerships are negotiating agreements with big Chinese car makers to enter the market and plug the gap left by stuttering supplies of European cars.

The deals, expected to be finalised within months, are in the works as prices for family cars soar and leave a gap in the market for modestly priced family motors.

Chinese makers such as BYD and Great Wall are understood to be considering a push under their own brands, having observed that British buyers have been open to new entrants to the car market such as Tesla.

Buyers can already snap up a motor from a Chinese-owned brand, but usually in the guise of a more familiar name, such as Volvo, now owned by China’s Geely, or MG, which is owned by SAIC.

Executives at big dealers now expect to sign orders in the coming months and say that Chinese branded cars will be seen on British forecourts from the first quarter of next year.

It comes as European manufacturers focus their limited capacity on luxury models. Mercedes, Volkswagen and BMW are prioritising the more lucrative top of their ranges over mass-market models amid a protracted shortage of microchips.

At the same time, prices for more modest cars have shot up. In 2010, models like the Chevrolet Spark and VW Fox offered drivers the chance to own a car for less than £7,000.

Now the cheapest new cars in the UK like the Kia Picanto, Dacia Sandero and Citroen C3, start at about £12,000 and average at £14-15,000. The Vauxhall Corsa, last year’s most popular model, goes for an average price of about £22,000, having had its own 46pc surge in price since 2019, according to data from Auto Trader. 

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