On Monday 12 October, China rejected an EU request to voluntarily restrict its exports of hybrid cars by 15%, as part of efforts to protect EU manufacturers from lower-cost imports. This follows recent discussions indicating that Prime Minister Andy Burnham may raise tariffs on Chinese vehicles entering the UK, responding to pressure from the EU to match its 45% tariff rate on Chinese imports. Speculation remains that Beijing could compensate for the increased tariff rate to maintain competitive vehicle prices for UK and EU consumers.
NFDA highlights that trade restrictions alone will not drive the transition to electric vehicles and urges the government to explore practical policy measures to support consumer uptake. Priority areas include renegotiating the 20% VAT rate on public EV charging to create parity for drivers without driveways, alongside maintaining low Benefit-in-Kind (BiK) rates for company cars.
Sue Robinson, Chief Executive of NFDA said: “Long-term policy certainty and consumer incentives remain critical. While global trade dynamics continue to evolve, NFDA urges the government to focus on practical measures that directly support UK motorists, such as addressing the VAT disparity on public EV charging and maintaining low company car tax rates.”