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As the EU considers restricting Chinese electric vehicle sales, the UK may find itself unintentionally supporting Chinese dominance in the EV market, raising questions about the UK’s post-Brexit trade strategy, its commitment to net-zero emissions, and whether it should prioritise domestic production over cheaper Chinese imports.<\/p>\n
Speaking to Express.co.uk, Jason Farrell, a certified master technician at Mechanic’s Diary, said: “As the EU contemplates restricting Chinese electric vehicle sales, the landscape of the car industry is set to evolve dramatically.<\/p>\n
“These decisions are not merely political or economic \u2013 they are the heartbeats of the automotive world. Such moves change how manufacturers strategise, how consumers buy and what the future roads look like.<\/p>\n
“If the EU goes ahead with this, on one side, the EU is trying to protect its homegrown industries and, perhaps, encourage the production of local electric vehicles. On the other hand, the UK seems to be in a different lane, potentially providing inadvertent advantages to Chinese EV makers.”<\/p>\n
He added: “But where does this leave British carmakers? If the UK embraces Chinese EVs more openly, it might benefit from an influx of newer technologies and potentially more competitive pricing.<\/p>\n
“British carmakers would face stiffer competition domestically, pushing them to innovate faster or risk being sidelined. That’s why it’s not just about the cars. It’s about the technology, the manufacturing and the entire ecosystem.”<\/p>\n
In June, Chinese carmakers, including Chery, began talks with UK officials about manufacturing cars in the UK.<\/p>\n
Chery plans to sell cars in the UK and is considering making them here too. This could boost the UK’s struggling car industry. They might partner with European companies, use existing factories, or build new ones.<\/p>\n
It is a response to the saturated Chinese car market and a chance to tap into Europe’s market. The location depends on deals and incentives from European nations.<\/p>\n
Britain’s appeal includes green energy options, but high electricity prices remain a concern.<\/p>\n
Don’t miss… <\/strong> We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n Before the EU’s announcement, German car industry executives were already anticipating some form of action against Chinese electric vehicle manufacturers. The probe has heightened concerns that China may respond with punitive measures against European carmakers, including tariff hikes on European cars imported into China.<\/p>\n German automakers like BMW, Mercedes-Benz, and Volkswagen have enjoyed considerable success in China, with premium brands appealing to wealthier Chinese consumers. BMW and Mercedes-Benz sold a significant portion of their vehicles in China last year. However, a reliance on that market makes them vulnerable to potential trade disruptions.<\/p>\n Gregor Sebastian, an analyst at the Mercator Institute for China Studies, told the Financial Times that top-end German brands could be the hardest hit by new import tariffs, as most cheaper cars are already produced in China.<\/p>\n He said: \u201cA lot of the foreign automotive production or foreign automotive industry in China is actually heavily localised, but the exception is really the top premium segments.”<\/p>\n The situation could particularly affect Mercedes-Benz, which imports roughly 20 percent of its cars sold in China, compared to about 10 percent for VW and BMW.<\/p>\n Even German carmakers with substantial local manufacturing operations in China are feeling uneasy. Volkswagen has faced increasing competition in China and delays in launching new electric models.<\/p>\n This EU probe coincides with growing concerns within the European car industry about the rise of Chinese automakers on their home turf. French car manufacturers, including Peugeot-owner Stellantis and Renault, have warned about the challenges posed by Chinese rivals offering more affordable models in Europe.<\/p>\n One potential risk for European carmakers is China’s control over the supply chains of crucial battery raw materials like lithium.<\/p>\n Over the past decade, the Chinese government has heavily invested in battery material processors and producers, bolstering its domestic electric vehicle (EV) industry.<\/p>\n Meanwhile, China is making significant strides in the global electric vehicle market. Data from Moody’s Analytics reveals that China has already surpassed Germany in overall car exports and is on track to become the world’s top exporter, surpassing Japan.<\/p>\n China’s dominance in the EV sector is no coincidence. It stems from a strategic push by the Chinese government to leapfrog Western competitors by focusing on new energy vehicles, particularly battery-electric vehicles. China’s scale, subsidies, and investments in key EV components have allowed its manufacturers to undercut global competitors.<\/p>\n
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