Demand for Chinese electric vehicles continues to climb across the UK, but that rapid growth could soon stall. A new report suggests the country may follow the European Union’s lead by introducing tariffs on EVs imported from China.
The EU is driving the push for tariffs. Officials have reportedly warned British ministers that failing to impose duties on Chinese vehicles could see the UK excluded from the ‘Made in Europe’ scheme. That outcome would make it significantly more expensive for British carmakers to sell vehicles in the EU.
The Sunday Times reports that UK business secretary Jonathan Reynolds has begun preparing a tariff package ahead of next month’s UK-EU summit. Britain has so far been unwilling to introduce such measures, but the sharp rise in Chinese vehicle sales now appears to be changing its position.
Jaecoo Leads the UK Sales Charts
Recent sales figures highlight the strength of demand for Chinese cars in the UK. Nearly a quarter of all new vehicles sold in September came from China. The Jaecoo 7 led the market with 10,812 sales, even surpassing the Tesla Model 3.
Often dubbed a ‘Temu Range Rover,’ the Jaecoo 7 is available in the UK with a 1.6-liter turbocharged petrol engine or a 1.5-liter plug-in-hybrid powertrain. September marked its second month as the UK’s best-selling car this year. It remains unclear whether any proposed UK tariffs would cover Chinese combustion-powered vehicles, although doing so could be important if Britain wants to slow the expansion of Chery, BYD, and other brands on its roads.
The EU currently applies tariffs of up to 45 percent to Chinese electric vehicles. Following their introduction, Chinese manufacturers quickly shifted attention from EVs toward plug-in hybrids. European lawmakers are now reportedly considering extending the tariffs to hybrids as well.
British lawmakers appear to be treating the EU’s warnings seriously. Last week, the Society of Motor Manufacturers and Traders said the Made in Europe rules pose a threat to UK vehicle production. If the latest report is accurate, Britain may soon have to choose between closer alignment with Europe and continued openness to China.
Chinese vehicle sales have climbed sharply in the UK, with the Jaecoo 7 becoming the country’s best-selling new car in September. The surge has prompted consideration of tariffs, partly in response to pressure from the European Union and concerns over the future of Britain’s access to the Made in Europe scheme. Any measures could affect both electric and hybrid models.
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