Experts are warning that a record number of electric vehicles from China could be “dumped” in the UK as popular brands look to avoid EU tariffs.
In July, the European Commission announced the introduction of anti-subsidy duties on China after being accused of benefitting from subsidies that could threaten the European car manufacturing industry.
Three of the largest production companies were slapped with hefty tariffs including BYD with 17.4 per cent, Geely with 19.9 per cent and SAIC facing tariffs of 37.6 per cent.
Other electric vehicle producers in China are also subjected to tariffs. Companies who cooperated in the investigation are subject to a 20.8 per cent weighted average duty, while non-cooperating companies face a 37.6 per cent duty.
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BYD is one of the most popular electric vehicle brands in China
REUTERS
The UK has not yet announced tariffs on electric vehicles being imported from China, although former Transport Secretary Mark Harper said the Government would not hesitate to protect the industry.
A number of Chinese brands looked to sell large quantities of vehicles to Europe this summer before the EU taxes were levied, including SAIC, which owns MG, and BYD.
Analysts have now suggested that Chinese brands could increase sales to non-EU countries without harsh tariffs, such as the UK, Norway, and Switzerland.
Matthias Schmidt, founder of Schmidt Automotive Research, said: “If the EU tariffs stick, we would expect the Chinese to prioritise the UK.
“The UK is implementing strict regulatory measures such as the zero emission vehicle (ZEV) mandate, so the Chinese brands stand to benefit from that because of their high mix of EV sales,” he told The Telegraph.
According to the Society of Motor Manufacturers and Traders (SMMT), BYD has already sold 3,672 vehicles this year, a staggering 1,940 per cent increase compared to the previous year.
Another popular brand, GWM Ora has sold 950 cars in the UK, while a handful of other brands plan to launch in the UK in the coming months.
Two Chinese brands are launching in the UK this year and have previously promised to launch with cars under the £30,000 price mark in a further blow to established European brands.
Innovation Automotive Electric Vehicles announced earlier this year that Seres and Skywell models would be hitting the UK, with Britons set to see a slight drop in price compared to other brands.
Commenting on the rollout, Gary White, general manager at IA Electric Vehicles, said: “Both brands are highly respected around the world and their technology, comfort and refinement are a perfect match for the UK marketplace.”
Prices seen on the online vehicle marketplace Auto Trader show that a BYD Atto 3 is on the market for £21,495 from an official BYD dealership in Manchester with just 25,000 miles on the clock.
The BYD Manchester dealership sells several Atto 3 models on Auto Trader with prices all less than £23,000 – significantly cheaper than most other electric vehicles on the market.
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BYD is rapidly expanding across the world
REUTERS
Other Chinese brands can also be found on Auto Trader, including a £13,989 GWM Ora Funky Cat and an £8,999 MG ZS electric vehicle manufactured by SAIC under the British moniker.