Jonathan Reynolds weighs Chinese EV tariffs after sales soar
Jonathan Reynolds is reportedly weighing up whether to impose tariffs on Chinese EVs as the business secretary grapples with a surge in imports.
Ministers are concerned that Chinese carmakers are “dumping” subsidised vehicles into the UK, the Times reported, and are considering adopting the 45 per cent tariff levied on Chinese cars by the EU.
“We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests,” a government spokesperson said.
Andy Burnham is also understood to be under pressure from the EU to impose tariffs on Chinese EVs if the UK wishes to be treated as a “trusted partner” under its new “Made in Europe” policy, which aims at reducing imports into Europe and encouraging more European-made goods.
British carmakers have been concerned that the UK would be excluded from the scheme, setting new barriers to the supply of crucial parts and equipment across the Channel.
Chinese EV surge
More than 300,000 Chinese cars have been sold in the UK so far this year, setting a fresh record as European rivals lost ground.
Chinese carmakers made up five of the top 25-performing brands in the first nine months of the year, data from The Society of Motor Manufacturers and Traders (SMMT) has revealed, accounting for just under a quarter of the market by volume.
MG, the heritage British marque that was bought by Chinese owners in 2006, was the best-performing Chinese brand, accounting for just shy of 80,000 registrations. That was followed by BYD with 68,000.
Jaecoo, which came third with 59,000 registrations, also produced the single best-selling model in the UK in the month of September, with more than 10,000 units of its ‘7’ SUV sold.
Chinese carmakers in the UK, all of whom only sell electric vehicles, were also able to take advantage of a wider push away from combustion engines as Brits shun petrol and diesel cars amid rocketing fuel prices.
Plug-in hybrid registrations surged 55.7 per cent to take a record volume and share at 17.0 per cent. Battery electric vehicle (BEV) demand, meanwhile, climbed 36.3 per cent in September to a record high volume of just under 100,000 units, with market share up five percentage points to 28.3 per cent.