UK drivers have been warned that buying cheap electric vehicles (EV) from China could wipe out suppliers in the west, putting millions of jobs at risk. David Dauch, chief executive of US-based manufacturer Dauch Corp, said an influx of automobiles from eastern Asia poses an existential threat to the European sector, which employs around 14 million people. "Countries are going to have to put the right policies in place to make sure it's a level playing field for the suppliers and manufacturers in each of those countries," he told The Telegraph.
"If not, then they run the risk of losing jobs and potentially losing industries." Almost 28% of the electric vehicles sold in the UK last year came from China, and Mr Dauch said the figure could tick upwards unless action is taken, including following Donald Trump's lead in effectively blocking imports to the US through 100% tariffs and strict regulations.
The CEO, whose firm recently acquired UK auto parts supplier Dowlais, added that expecting customers to choose pricier EV models ignored the market reality, with many instead prioritising "affordability and reliability" when picking out a vehicle.
Chinese EV manufacturers including BYD, which overtook Tesla to become the biggest player in China in 2024, only began expanding into the UK and Europe over the last five years.
By 2024, however, Chinese brands recorded 10% of global EV and hybrid sales in other countries, according to the consultancy Rho Motion, owing in large part to their cheap models - including the BYD Dolphin SURF, which has a competitive pricemark of under £20,000.
Chinese companies also work to significantly higher gross margins than Europeans, which has enabled them to make large profits despite tariffs including those levied by the US.
David Bailey, professor of business and economics at Birmingham Business School, told the BBC that Chinese brands making in-roads into the European market could rapidly become a cause for concern.
"[China has] a huge cost advantage through economies of scale and battery technology," he said. "European manufacturers have fallen well behind. Unless they wake up very quickly and catch up, they could be wiped out."
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