Record growth of Chinese cars in UK
Across the first half of this year, more than 8% - or 1 in 12 - cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric vehicles.Some industry grandees have warned that the UK industry will struggle to compete, and Britain might have to introduce quotas. Chinese firms and their franchises have been buying up car showrooms."Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market," said John Neill, former SMMT President and ex-chief executive of Unipart."If they are going to sell here we are going to have to get the Chinese to manufacture here."The government has so far faced little pressure from existing suppliers on copying the tariffs imposed by the EU, US, and Canada on electric cars. The majority of EU member states backed big taxes being imposed on imports of EVs from China, which can be as high as around 45%, and Canada announced its imposition of a 100% tax on Chinese made EVs.The EU and China are in negotiations to replace the tariff with a minimum price system.Some Chinese manufacturers are also in the process of opening factories in the EU which could export across Europe including the UK tariff-free.The SMMT said that one in four buyers of new cars in the UK are now purchasing electric cars - although the transition to electric has been driven by "unsustainable" discounting by manufacturers, says Mike Hawes, the SMMT's chief executive."As we have seen in other countries, government incentives can supercharge the market transition," he said.
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