Vauxhall UK MD wants "fair playing field" as cheap Chinese EVs surge

Vauxhall's new UK boss wants the government to create "a fair playing field" and look into whether Chinese car makers are using state subsidies to undermine established brands. It comes after they captured a record 12.8% of the UK market in September. “What we see is they are offering extraordinary value for money. I don't know how they're able to achieve that versus European manufacturers,” managing director Steve Catlin told Autocar. “Our request would be that if there are inequities, ie if they're able to get that amazing value through means that are not fair, then the government takes the opportunity to look them up and address it. We want to see a fair playing field in the UK market.” The market share for Chinese car makers in September – led by MG, BYD and Omoda/Jaecoo – surpassed that of the Korean brands, including Hyundai and Kia (10.6%) and approached the combined share of Japanese marques (14.9%), according to figures from the Society of Motor Manufacturers and Traders (SMMT). MG’s record sales month, at 14,577, put the SAIC-owned brand in eighth position and notably above Vauxhall in 11th, while strong sales for BYD placed it 15th with Omoda/Jaecoo in 16th ahead of Renault, Land Rover and Mini. The UK was BYD's biggest market outside China in September. The UK has so far chosen not to follow the approach of the EU, which imposed additional tariffs on Chinese-built EVs after determining that “the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers.” Hardest hit was MG parent SAIC, which has to pay 45.3% duty on EVs imported into the EU, with Geely at 28.8% and BYD at 27%. Chinese cars into the UK continue to pay a flat 10% duty. Catlin said the EU investigation could be a “good guide for the UK government” – and suggested that any investigation could be widened to include other drivetrains, including plug-in hybrids. Chinese brands accounted for more than a third of PHEVs sold here in September, with the BYD Seal U and Jaecoo 7 SHS topping the PHEV charts for the month. The SMMT, Britain’s largest automotive trade body, hasn’t joined the call for an investigation The organisation counts among its members Chinese car makers and generally favours fewer trade restrictions. “Free and fair trade has been the foundation of the UK industry’s success, and delivering a vibrant domestic market and strong manufacturing base are crucial to the sector’s health,” chief executive Mike Hawes told Autocar. Chinese car makers are “driving competition” in the UK car market and pushing established brands to “demonstrate their agility” by accelerating model development and reducing costs, Hawes said. "UK car buyers benefit from a choice of more than 50 global brands, and the market has always been open to new entrants,” he added. Vauxhall and the wider Stellantis group has demonstrated some of that agility by launching new, cheaper electrified cars such as the Frontera SUV, which offers either hybrid or electric drivetrains at the same price. “Our retail share has grown [in September], even with all of those new players coming into the market and being as aggressive as they are in terms of their go-to-market offers,” Catlin said. “They are adding competition in the marketplace that ultimately we need to respond to in the best way that we can.” European car makers with a stake in the Chinese car market, such as the Volkswagen Group, have opposed additional tariffs for Chinese car makers in Europe. “Measures that restrict trade, such as the introduction of countervailing duties/protective tariffs, are generally inappropriate for strengthening the long-term competitiveness of the automotive industry,” the German giant said in its annual report published earlier this year. Both BMW and Mercedes-Benz have also previously come out in opposition to tariffs. In January, BMW joined a legal challenge to the EU, along with Chinese EV makers, after its electric Mini Cooper and Aceman models were hit by the tariffs. The UK government has sought to help European car makers and those with a stake in the UK automotive industry through its new Electric Car Grant, focusing on the manufacturing impact on the environment. The government hasn’t explicitly said that Chinese car makers are excluded from the scheme, but so far no Chinese EV has qualified for the grant. Vauxhall manufactures electric vans and MPVs in the UK, but these don't qualify for the top £3750 grant, likely because their batteries are sourced from China. The British brand is hopeful that a long-range version of its Grandland Electric SUV due next year will qualify for the full amount after switching to a Europe-built ACC battery. The phenomenal success of the Chinese has been driven in part by the value of their vehicles compared with established competition. For example, the new Jaecoo E5 costs from £27,505, whereas the Kia EV3 with a similar battery size and power starts at £33,005. New entrants including BYD and Omoda/Jaecoo are rapidly expanding UK dealer locations, with BYD reaching 100 outlets and Omoda/Jaecoo more than 80. Stellantis meanwhile has helped its Chinese partner Leapmotor set up 50 dealerships, with the aim to hit 70 by the end of the year. All are existing Stellantis-brand dealers. As part of its investment in Leapmotor, Stellantis will help the firm localise production at a plant in Spain starting next year, thereby avoiding EU or UK tariffs.

main menu

Vauxhall UK MD wants "fair playing field" as cheap Chinese EVs surge

Chinese rivals are offering "extraordinary value" that European marques can't compete with, says Steve Catlin

Add your comment

More from Autocar

Top 10s

Latest car reviews

Top manufacturers

Quick search

Legal bits

About Autocar

main menu

Vauxhall UK MD wants "fair playing field" as cheap Chinese EVs surge

Chinese rivals are offering "extraordinary value" that European marques can't compete with, says Steve Catlin

Autocar Login Block

Add your comment

More from Autocar

Top 10s

Latest car reviews

Top manufacturers

Quick search

We recommend

Legal bits

About Autocar