The UK Government has announced plans for ‘robust measures’ on certain types of cars. This comes as China aims to dominate the British car market with cheap electric vehicles. Transport Secretary Mark Harper has issued a warning that if China tries to undercut competition in the UK’s electric vehicle market by lowering prices too much, he will step in.
Chinese car manufacturers, including BYD, SAIC’s MG, Chery Automobile and Great Wall Motors, are aiming for both the UK and European markets with competitively priced electric vehicles. Despite this, Mr Harper remains confident in the UK’s technology and regulatory regime.
“Our concern is about cost and competitiveness,” he said. “We have very robust measures in this country with a trade remedies regime… making sure we have fair international trade, and that we don’t have dumping or unfair subsidies.”, reports Birmingham Live.
Joshua Parker, head of the economics unit at the TRA, also shared his thoughts on the Gov.uk website. He warned: “Trade remedies may help to correct for distortions caused by subsidies and create a more level playing field between domestic and international producers.”
“Trade remedies may provide temporary protection and allow industries to adjust to changing circumstances.” He added: “It may also be true in cases where a domestic industry needs time to develop, such as with new technologies.”
“Trade remedies may help to deter or correct for international predatory pricing. This is where a business dumps goods at low prices to force other businesses to exit the market.” Mr Harper expressed that the UK has a “good legal structure”, which will ensure “competition is fair and there’s a level playing field”.
He mentioned to the attendees at SMMT Connected 2024 that the more competitors in the market, “designing good technology, designing exciting cars for consumers, the better”. He continued with: “The important thing is it’s a fair competitive landscape.”
