UK car manufacturing bosses have warned Labour to avoid introducing import tariffs on Chinese vehicles over fears it could harm free trade and stifle competition.
The UK chiefs of automotive giants Stellantis and Renault voiced their concerns during the Car Dealer Live event at the British Motor Museum in Gaydon.
Both executives advocated for maintaining free trade principles rather than implementing protective tariffs against the growing influx of Chinese vehicles into the UK.
They suggested that instead of putting trade barriers in place, the focus should be on boosting consumer confidence and accelerating demand for electric and hybrid vehicles.
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Chinese vehicles are currently tariff-free across the UK
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The need for more support comes as the UK looks to push forward with its Zero Emission Vehicle mandate which will require at least 28 per cent of new car sales to be electric by this year before moving to 100 per cent in 2035.
The comments come amid growing debate about how to respond to the rapid expansion of Chinese automotive brands in the British market which are currently offering some of the cheapest models for drivers.
As it stands, the UK does not impose any tariffs on cars imported from China, which has contributed to the remarkable growth of Chinese brands in the British market, but this could change.
Models from manufacturers such as BYD, GWM and Jaecoo have seen enormous expansion over recent years as they establish themselves on UK roads.
But this surge in Chinese imports has raised concerns about the future of British carmaking. With the domestic automotive industry struggling to keep up with Chinese rivals.
This competitive imbalance has prompted discussions about whether protective measures might be necessary to safeguard UK manufacturing interests.
Speaking at the event, Stellantis's UK chief, Eurig Druce, made a robust case for maintaining free trade principles.
"Stellantis is a company that operates globally and tariffs block global trade. I would much prefer and we as a company would much prefer to be in a scenario where we have free trade," he stated. Druce also expressed confidence in the company's ability to compete without protective measures.
He added: "I think tariffs are in place where you are not confident in your own ability to compete. It will create a lazy industry, and it won't create the competitive nature that we need.”
Meanwhile, Renault UK managing director Adam Wood, who appeared alongside Druce at the event, echoed these sentiments against additional tariffs. "We don't need barriers to free trade," Wood stated firmly.
He highlighted the significant investments already made by established manufacturers in developing new technologies.
"We've invested billions as manufacturers into industry-leading technology, across full EV but also hybrid," he pointed out. Wood also advocated for a different approach to support the automotive sector.
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Several Chinese manufacturers are looking to sell more electric vehicles in the UK
REUTERSHe noted: "What we need now are measures that are going to accelerate demand for those vehicles that we are making and a market which is confident.
"I'd certainly welcome all measures that are going to increase that consumer confidence, particularly in the retail sector."
