'Draconian' UK tariffs on Chinese cars would raise prices, says MG

MG has bluntly stated its case against additional tariffs on Chinese cars imported to the UK, calling them a tax on private sales at a time when consumers are rapidly turning to cheaper electrified models from SAIC-owned MG as well as BYD and the Chery group. The UK is reportedly under pressure to follow the European Union on Chinese EV tariffs and planned quotas on hybrids, in return for UK-built cars being included in new incentives designed to protect the EU car industry. MG said this risked raising car prices in the UK again following a period in which increased competition has made cars more affordable. That in turn has grown the market, which rose 10% in the nine months to the end of September. “I'm struggling to see how the consumers would benefit from the application of tariffs in the UK to electric vehicles specifically,” Guy Pigounakis, commercial Director at MG Motor UK, told Autocar. “Inevitably, it's going to increase prices.” So far the UK government has resisted EU pressure to impose additional tariffs. The Guardian reported today (14 October) that business secretary Jonathan Reynolds said he was against tariffs partly because of the danger to UK exports to China from retaliation. Non-Chinese carmakers are keen for the UK to fall in line. Nissan would support increased tariffs and quotas for the UK, Europe boss Max Messina told Autocar at the Paris motor show. Renault boss Francois Provost also urged the UK to follow the EU in curbing Chinese imports. MG’s Pigounakis pointed out that Chinese car makers are already locked out of the electric car grant, which reduces the price of EVs built in Europe and elsewhere by up to £3750. “The UK has already taken action to protect those manufacturers. Applying a tariff on top of that seems draconian,” he said. MG said the company is increasingly embedding itself into Europe, creating jobs in its London design centre and its R&D facility at MG’s old Longbridge base, as well as announcing a new assembly plant in Spain. MG also indirectly employs 2546 staff at its 160 dealers in the UK with a further 20 showrooms planned to open by the end of 2027, Pigounakis said. Chinese carmakers have stunned existing brands with the speed by which they have gained share in the UK, rising to 23% in September, when the Jaecoo 7 once again became the UK’s best-selling car. BYD was the second best-selling brand in the month, with MG in fourth. The combined brands of the Chery Group including Omoda, Jeacoo and Chery itself reached 9.4%, which was higher than the Volkswagen brand. European brands have repeatedly called for a level playing field that recognises the fact that they have higher production costs in Europe and lack some of the state support offered to players in China. MG’s Pigounakis countered those claims by saying that China’s cost and competitive advantage has partly come from precise targeting of electric and hybrid vehicles, which allowed them to size their organisations to suit these future technologies. “If you look at the legacy plants across Europe and North America, they’re 400-500 acres, they've got tens of thousands of people working in them. I genuinely don't know what half of them do,” he said. “If you start up a business from scratch today, you're going to scale it to exactly what the market requires and your overhead is going to reflect that.” Critics have accused European brands of dragging their heels on electrification as they try to extend the glide path of combustion-engined models, which offer greater profits. “For years, capital was steered to sustain and optimize mature ICE platforms and defend near-term margins, rather than to pre-fund the electric and digital transition while there was still runway to do it gradually.” Guillaume Dejean, head of autos for the research arm of the insurer Allianz said in an October report. MG said the competition from China has accelerated the development of European EVs, particularly in the low-cost segments. “You’ve now got Citroën talking about a £13,000 electric car. The competition has made them build those cars. They wouldn't have done them otherwise, in my opinion,” Pigounakis said.

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'Draconian' UK tariffs on Chinese cars would raise prices, says MG

UK is under pressure to follow EU in curbing Chinese imports, but MG UK boss says move would impact car buyers

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'Draconian' UK tariffs on Chinese cars would raise prices, says MG

UK is under pressure to follow EU in curbing Chinese imports, but MG UK boss says move would impact car buyers

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