Chinese-made electric cars now account for a third of the UK market

Chinese-made electric cars now account for a third of the UK market

The UK automotive market serves as a primary export destination for the EU automotive industry, accounting for nearly a quarter of Europe’s electric vehicle exports. Recognition of Chinese vehicles within the UK market is steadily increasing. Following Brexit, the depreciation of the pound sterling has rendered Chinese vehicles more competitively priced in the UK market.

ACEA data indicates that despite a 10% import tariff imposed by the UK, Chinese-manufactured electric vehicles still command one-third of the UK’s electric vehicle market. Under comparable conditions, European manufacturers would clearly lose their competitive edge in the current economic climate.

Consequently, on 20 June this year, the European Automobile Manufacturers’ Association (ACEA) urged the UK to postpone for three years the restrictive provisions on electric vehicle trade scheduled to take effect six months later. This delay aims to mitigate competitive pressure from third-party automotive importers outside the EU and UK. Failure to do so could result in European manufacturers incurring tariff losses totalling up to €4.3 billion and potentially reducing electric vehicle production by approximately 480,000 units.

From 1 January 2024, these rules will become stricter, requiring all battery components and certain critical battery materials to be produced within the EU or UK to qualify for tariff-free trade. Sigrid de Vries, Director General of ACEA, stated: ‘Europe has not yet established a secure and reliable battery supply chain to meet these stricter rules.’ ‘This is why we are asking the European Commission to extend the current phased implementation period by three years.’

Significant investments have been made in Europe’s battery supply chain, but establishing the required production capacity takes time. In the meantime, manufacturers must rely on imported batteries or materials from Asia.”

Based on ACEA member data, the 10% tariff on electric vehicles during the 2024-2026 period would cost nearly €4.3 billion. This would be detrimental not only to the EU automotive sector but also to the broader European economy. De Vries cautioned: The implementation of these rules will have severe consequences for Europe’s electric vehicle manufacturing sector as it faces increasing competitive pressure from abroad.”

Additionally, ACEA data indicates: China’s passenger vehicle exports to Europe reached €9.4 billion in 2022, making it the EU’s largest import source by value, followed by the UK at €9.1 billion and the US at €8.6 billion. Below is a detailed overview of the EU’s primary passenger vehicle import origins, categorised by market share.

The UK and EU automotive markets are expected to continue growing in the coming years, providing ample room for growth in Chinese auto exports. Furthermore, with the continuous improvement of Chinese auto quality and the advancement of intelligent and connected technologies, the competitiveness of Chinese auto brands in the UK and EU markets will be further enhanced.

The EVCC, a charging communication solution for export by domestic brands, enables direct conversion between electric vehicles, charging stations, and battery power sources based on national standards to communication protocols compliant with European CCS2, American CCS1, and Japanese standards, enabling the export of new energy products that meet national standards for charging.