Sunita Somvanshi
Shoppers looking at budget electric cars in Britain could face higher prices if a proposed tariff goes ahead. UK ministers are considering tariffs of up to 45% on Chinese-made electric vehicles, according to press reports. No tariff has been set. A tariff is an import tax. Chinese brands such as BYD and Leapmotor sell cars in the UK, and their share of the market is growing, according to reporting.
Business Secretary Jonathan Reynolds has called the decision "finely balanced" and said he is not ruling anything out. The EU applies additional anti-subsidy duties of between 7.8% and 35.3% on top of a 10% standard duty on battery-electric cars from China, depending on the manufacturer. That brings the top rate to about 45%, which is the figure ministers are reportedly considering matching. The UK has not adopted these additional duties. The Times reported that Brussels has made clear the UK could be cut from its "Made in Europe" local-content rules if it does not act on tariffs. The Department for Business and Trade said: "We have not put tariffs on Chinese EVs. We continue to engage closely with industry so that our approach reflects the sector's and UK's national interests."
British drivers planning to buy or lease an electric car in the next six to 12 months should watch this decision. No tariff has been set, so no price change has been confirmed. Inference: if a duty applies, the added import cost would likely raise the price of the affected cars.
What the Hybrid Gap Means
Plug-in hybrids have both a battery and a petrol engine. Reports differ on whether a levy would cover hybrids. One analysis notes that an electric-only levy would leave out hybrids. Chinese-built vehicles, including plug-in hybrids, currently pay the standard 10% import duty.
The UK's zero-emission vehicle mandate requires a rising share of new car sales to be electric. The Society of Motor Manufacturers and Traders (SMMT) has pushed for UK access to the EU scheme. Its chief executive, Mike Hawes, said the exclusion of UK-built vehicles "would severely damage both our highly integrated industries."
Will plug-in hybrids from China face UK tariffs? Not yet, as far as reporting shows. Reports differ on whether a levy would cover hybrids, and no decision has been announced. Plug-in hybrids currently pay the standard 10% import duty. For more on UK electric car rules, see Karmactive’s electric-car market coverage, and for brand-level sales, see Karmactive’s EV pricing coverage.
The UK is weighing duties of up to 45% on Chinese electric cars, a level that matches the top combined EU rate on some models. Plug-in hybrids are not yet included, and reports differ on whether they would be. Electric car prices depend on the final decision. The government says the question is still open. Check back for updates.
