Peter Vosper: Are Chinese Cars a threat?

It seems that new Chinese cars are in the news almost every day. The USA has announced an increase to the tariffs on electric vehicles from 25% to 100% in 2024 as a result of unfair policies and to protect jobs. Brussels claims massive state subsidies are artificially depressing prices to the detriment of European manufacturers and are also expected to impose provisional duties on new battery powered vehicles.

The UK is likely to follow. Firstly, I must declare an interest as Vospers have recently be appointed to sell Omoda and Jacoo cars in Devon and Cornwall, which are made by one of China’s largest motor manufacturers, Chery. The Chinese are way ahead of the rest of the world in sales of electric vehicles and their share in their home market, which is over 20 times as large as the UK’s, is already greater than 50%.

BYD, Ora and Chery will be followed by Leapmotor which is a joint venture with Stellantis, who own Peugeot, Vauxhall, Fiat, Jeep and Alfa Romeo, and is expected to offer Leapmotor product through selected dealers later this year. The Chinese already have a significant interest in the European market with Chinese motor manufacturer BAIC the top shareholder in Mercedes Benz, followed by Chairman of nonstate Chinese motor manufacturer Zhejiang Geely Holding Group, billionaire, Li Shufu. Together, their stakes add up to nearly 20%.

Geely is also the parent of Sweden’s Volvo Cars. Whether or not to introduce tariffs creates a difficult problem as Europe is committed to electric vehicles and low prices are essential to their goal of popularising these products. Chinese products are cheaper by over 20% and China is already the largest exporter of motor vehicles with almost 5 million shipped worldwide but their presence in Europe remains small. There is one other significant fact. These products are quality vehicles with 5 star NCAP ratings and the latest technology and they will put additional pressure on European manufacturers to make their electric product more competitive. This will help the UK sell more electric vehicles as we move to even more demanding objectives on manufacturers between now and 2030. Interesting times.

To finish on a personal note, I had my first ride in a Ford Mustang Mach E electric vehicle fitted with Blue Cruise which allows the driver to release control providing he or she keep their eyes on the road thus prepared to handle any emergency. Was I concerned. No, as my son was driving and I know would take no risks with his father on board. However, it was strange to see a truck drift towards our lane and feel the car take the necessary action to move over to a safer position. Although this system can only be used on the motorways it shows what can be done in the future and how it will change motoring. There are major
benefits but more work will be carried out to prove the safety before full autonomous driving becomes the norm.