Financial Watch: Chinese electric vehicles accelerate into the UK market

Chinese car manufacturers are targeting the UK, "said Ding Yazhi, a Global Times reporter in the UK. The Financial Times recently reported that Chinese car companies including NIO, Aion, and Jike are planning to launch related models in the UK this year. The report suggests that the UK market is crucial for Chinese car manufacturers looking to expand into overseas markets, as the UK has not imposed higher tariffs on Chinese made electric vehicles. In addition, due to the lack of local mass market car manufacturers, British consumers are more likely to accept new brands.
According to statistics from the British Association of Automobile Manufacturers and Traders, by 2025, Chinese brands represented by MG will have doubled their market share in the UK compared to the previous year, exceeding 10%. In December of last year alone, BYD and Chery's market share increased from 1% and 0.7% respectively a year ago to 5%, while the overall market share of Chinese brands reached 18% that month.
According to reports, Chinese car company Geely entered the UK market last year and expressed its hope to sell 100000 cars annually, and will provide an 8-year warranty for its electric vehicle batteries. Other entrants in 2025 include Changan, Xiaopeng, and Leapmotor.

Why are Chinese car manufacturers targeting the UK market? Automotive industry expert Zhong Shi stated in an interview with Global Times on the 26th that after Brexit, the UK's market access rules, regulatory system, and related processes have formed certain differences from those of the EU, with independent policy considerations and implementation paths. In addition, the upcoming visit of the British Prime Minister to China is expected to sign a series of trade agreements, which is undoubtedly a potential positive for the entry of Chinese new energy vehicles into the UK market.

According to The Times, British Prime Minister Stamer will lead a delegation to China this week. The British government has not yet announced the members of the delegation, but media reports have mentioned several high-ranking government officials and business leaders. In the automotive industry, Jaguar Land Rover executives are expected to visit China with a business delegation. According to a report by the Financial Times on the 25th, two insiders revealed that under a proposal supported by the UK government, Chery Automobile will use a Jaguar Land Rover factory in the UK to produce cars. The proposal is expected to be discussed during Stamer's visit to China. People close to the negotiations told the newspaper that in the past few years, the UK has been actively seeking Chery to produce cars in the UK. If a manufacturing plant has insufficient production capacity, it is reasonable to establish a cooperative relationship, which may become one of the cooperation models, "said Peter Kyle, the UK Business Secretary. The government hopes that Chery will produce cars in the UK. Utilizing the existing factories of Jaguar Land Rover is a feasible option. According to the analysis of the report, the UK government's goal is to achieve an annual production of 1.3 million vehicles by 2035, which is almost twice the 738000 vehicles predicted by the Association of British Automobile Manufacturers and Traders for 2025.

Zhong further stated that from a practical perspective, as an English speaking country, the UK has also provided certain convenience for Chinese car companies to export: the domestic export department has relatively sufficient reserves of English talents. In addition, Chinese car companies such as MG have performed well in the UK, accumulating a good market reputation and laying the foundation for Chinese electric vehicles to enter the UK market in the future.

However, going to the UK market also poses some challenges for Chinese car companies, such as facing fierce competition from European and American electric vehicles such as Tesla and Volkswagen. In addition, Zhong Shi reminded that there is no essential difference between the export of Chinese new energy vehicles to the UK and other European countries, and the core challenges still focus on after-sales service and cultural integration. British consumers have higher requirements for Chinese brand services when they first encounter them, while Japanese and Korean car companies have been deeply rooted in Europe for many years and have mature and perfect service systems. In order for Chinese car companies to establish a foothold, they need to build an efficient and effective after-sales service structure; At the same time, how to better integrate local culture in market promotion, brand communication, and other aspects is also an important issue that Chinese car companies need to break through.