UK Weighs EU Tariff Shift on Chinese Electric Cars
The government is considering aligning with the EU's 'Made in Europe' scheme as Chinese brands gain ground in British showrooms.
Updated on Nov. 15, 2026 in Electric Vehicles
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The UK government is considering aligning with the EU's 'Made in Europe' scheme, which could raise tariffs on Chinese electric cars from 10% to as much as 45%. Chinese brands accounted for more than 32,000 of the 152,730 new cars registered in Britain last month.
Why it matters
The 'Made in Europe' scheme is designed to help European manufacturers compete against low-cost Chinese electric vehicles, and a higher tariff would raise prices for buyers of Chinese models. Soaring pump prices have continued to drive demand for both new and used electric cars.
Demand for battery electric cars rose 23.2% to 97,625 in July to September, while used battery electric car transactions grew 39.6% to 295,524 year to date. The Jaecoo 7 was Britain's best-selling model last month, and three of the top 10 best-selling models were Chinese.
The players
Jonathan Reynolds
Reynolds is reported to want to cut the UK's zero emission vehicle mandate target to 50%, a position that places him at the center of a debate over the pace of the country's shift to electric cars.
Heidi Alexander
Alexander, the UK Transport Secretary, is reported to want to reduce the zero emission vehicle mandate to about 60%, making her a key voice on the scale of the government's electric vehicle targets.
Andy Burnham
Burnham is a senior public figure named in the reporting on the UK's electric vehicle policy debate.
Miatta Fahnbulleh
Fahnbulleh is a public official named in the reporting on the UK's electric vehicle policy debate.
The details
Transport Secretary Heidi Alexander reportedly wants to cut the zero emission vehicle mandate to about 60%, while Jonathan Reynolds is reported to favor a cut to 50%, both down from the current 80% target for 2030. Xpeng plans to launch a model costing just under £33,000 and to open around 100 showrooms and service locations nationwide next year.
Timeline
- July to September: Battery electric car demand rose 23.2% to 97,625 units.
- Last month: More than 32,000 Chinese-brand cars were registered in the UK.
- Next 12 months: Xpeng plans five new model launches.
- Next year (2027): Xpeng plans around 100 showrooms and service locations.
- 2030: Current target for 80% of vehicles sold to be electric.
Roadmap
The debate mirrors Europe's broader effort to shield domestic carmakers from low-cost Chinese electric vehicles through the EU's 'Made in Europe' scheme. How the UK sets its 2030 electric vehicle target will determine whether it follows that protective path or keeps tariffs lower to speed adoption.
If the tariff on Chinese electric cars rises, a model priced at £39,600 including VAT could climb to about £52,200, changing the cost calculation for buyers considering Chinese brands. Used electric car prices and availability have already been shifting, with used transactions up 39.6% year to date.
The takeaway
Buyers weighing an electric car should watch both tariff decisions and the final 2030 mandate level, since either could change prices and model availability. Comparing new and used options now may help lock in value before any policy change takes effect.
Further reading
For more on how these policy shifts affect the market, see Electric Vehicles.
Source note: This article includes information reported by Mirror.
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