How Chinese EV tariffs could transform the UK auto industry

Canada, following in the footsteps of the United States, announced a 100% tariff on Chinese electric vehicles and a 25% tariff on imported Chinese steel and aluminium. Similarly, the European Union has implemented tariffs as high as 36.3% on imported Chinese EVs.

However, as other Western countries tighten trade restrictions, the UK is taking a different approach. In this week’s blog, we’re exploring Britain’s stance on this issue and how it could potentially reshape the UK automotive sector.

Gearing up for the Chinese EV wave

With the heavy tariffs imposed by the EU, America and Canada, Chinese EV manufacturers may look to Britain as a prime destination for their vehicles. Unlike its Western counterparts, the UK remains open to China’s affordable EVs – potentially making it an attractive market for companies seeking to bypass restrictive trade barriers.

This move could have significant implications for the UK automotive sector. While other countries adopt a protectionist stance, Britain’s openness may signal an opportunity for increased competition and a wider variety of low-cost green vehicles.

The green approach

The question is – why has Britain refrained from imposing trade restrictions on Chinese EVs? Well, many speculate that the UK government don’t want to divert from the promotion affordable green transportation. By allowing lower-cost EVs to permeate the market, Britain could hasten a national transition to eco-friendly vehicles.

As of July 2024, EVs already account for 20% of new car sales in the UK – an increase in cheaper Chinese vehicles is therefore likely to encourage more drivers to take the plunge and go electric. By setting a national trend for EVs, Britain could end up encouraging other Western nations reconsider their tariffs – prioritising consumer’s finances and the environment over economic posturing.

Enhancing supply chain management

However, with the potential influx of Chinese EVs comes the challenge of supply chain management. The global automotive supply chain is notoriously complex and any disruptions can have far-reaching consequences – hence why supply chain agility is key.

For businesses operating in the automotive sector, adopting a comprehensive software solution can simplify any logistical complexities, cut costs and enhance overall performance. With the demand for EVs soaring – timely delivery is critical. Implementing a best-in-class Transport Management System (TMS) can ensure vehicles reach customers quickly, minimising wait times and improving customer satisfaction.

TrackTrans

For companies involved in vehicle movement and management, TrackTrans offers an industry-leading solution. Designed to cater to single and multi-vehicle transporters, platers and inspectors, our TMS streamlines the entire process – from scheduling and distribution to vehicle collections, deliveries and inspections. The system even manages driver availability through a simple SMS interface.

By leveraging TrackTrans, automotive firms can reduce operational costs, enhance efficiency and gain a competitive edge in a rapidly evolving market. As the UK navigates an increasingly unstable landscape of global trade and an urgent adoption of fossil fuel alternatives – having the right tools in place will be crucial for success.

Try TrackTrans today and drive your business forward.