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.
Add your comment