The real reason why UK is 'standing aside' as cheap Chinese EVs flood market

A growing number of motoring experts are voicing their divided opinions on whether the UK should follow various countries in introducing heavy tariffs on electric vehicles made in China.

In recent months, the EU, USA and Canada have announced tarrifs on electric cars made in the country, which are currently being sold for low prices, in a bid to protect local industry.

Matthias Schmidt, founder of the motoring consultancy Schmidt Automotive, warned that without a tariff in place, the UK is becoming a bigger target for China, boosted by the Government's mandate on electric vehicles.

He explained: "The UK remains an extremely profitable market for the Chinese manufacturers, whereas margins in the European Union will effectively be in the single digits or close to zero after tariffs.

"The ZEV [zero emission vehicle] mandate is a huge tailwind for them. The Chinese can effectively clean up when it comes to regulatory credits."

Due to cheaper labour costs in the country, Chinese car companies are often able to sell their models for much less in export markets.

Currently, some of the cheapest electric models sold in the UK, including the BYD Dolphin at £26,195 and MG4 at £26,995, are made in China, whilst Western brands like Dacia, Tesla and Polestar also make some of their vehicles in the country to keep the cost down.

Whilst some argue that this makes electric models more affordable to motorists, others claim that tariffs are necessary in order to keep cars from Western brands competitive.

Nevertheless, an unnamed Whitehall source published in The Telegraph revealed that the Government is unlikely to introduce a tariff on Chinese electric cars in the UK, claiming that the industry is not interested.

They added: "It's something that is under constant review. But we want to support our domestic car industry, and the industry is telling us that tariffs are not something they want.

"You don't want to shoot yourself in the foot for no discernable benefit."

Responding to the tariffs announced by the EU, the Chinese Government has threatened to introduce similar restrictions on luxury models and other products coming from Europe, such as cheeses and alcohol.

With 80 percent of all cars made in the UK exported, some motoring experts believe the threat will prevent the Government from introducing their own tariff.

Others have also argued that the low prices of electric models coming from China could also help the Government meet its ambitious sales quotas of EVs ahead of the total ban on new petrol and diesel models in 2030.