Business Secretary Jonathan Reynolds is reportedly considering whether to impose tariffs on Chinese electric vehicles (EVs) as the UK grapples with a significant increase in imports. Ministers are concerned that Chinese carmakers are “dumping” subsidised vehicles into the UK, according to The Times.
The government is reportedly considering adopting a 45 per cent tariff, mirroring the rate levied on Chinese cars by the EU. A government spokesperson stated, “We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests.”
More than 300,000 Chinese cars have been sold in the UK this year, marking a new record. Data from The Society of Motor Manufacturers and Traders (SMMT) shows that Chinese carmakers made up five of the top 25-performing brands in the first nine months of the year, accounting for just under a quarter of the market by volume.
MG, a British marque acquired by Chinese owners in 2006, was the best-performing Chinese brand with nearly 80,000 registrations, followed by BYD with 68,000. Jaecoo recorded 59,000 registrations and had the best-selling model in September, with over 10,000 units of its ‘7’ SUV sold.
Chinese carmakers, who exclusively sell electric vehicles in the UK, have benefited from a broader shift away from combustion engines. Plug-in hybrid registrations surged by 55.7 per cent, while battery electric vehicle (BEV) demand climbed 36.3 per cent in September to just under 100,000 units, with market share increasing to 28.3 per cent.