Tesla, Other US Automakers Lose Ground In UK To Chinese And Domestic Players
Chinese automakers are seemingly gaining ground in the United Kingdom as American automakers including EV giant Tesla Inc (NASDAQ:TSLA) falters.
What Happened: As per data from the Society of Motor Manufacturers and Traders (SMMT), 2,904 vehicles from Chinese EV maker BYD Co Ltd (OTC:BYDDY) (OTC:BYDDF). were registered in the U.K. this year as of the end of June, marking a near 2,800% jump from last year.
SAIC Motor-owned MG saw registrations jump nearly 11% to 44,046 units while Great Wall Motor‘s Ora brand witnessed a nearly 202% jump in registrations to 895 units.
Domestic players including BMW, Mercedes-Benz, and Volkswagen also saw registrations in the period jumped 33.58%, 20.93%, and 4.94%, respectively.
U.S. automakers Ford Motor Co (NYSE:F) and Tesla, however, are not faring well in the country. Tesla registrations slumped 12% to 23,029 units while Ford registrations fell 22% to 56,735 units.
Why It Matters: Chinese automakers have been focussing on increasing their market share in foreign markets following an economic slowdown at home. The increased competition among EV brands in the country has also given rise to an intense price war with EV makers including BYD slashing prices to retain market share.
Western nations including the EU and the U.S. are concerned that the low prices on Chinese EVs may harm domestic players.
While the U.S. quadrupled tariffs on EV imports from China to over 100% in May, the EU on Thursday said that it will impose tariffs between 17.4% and 37.6% from Friday on particular Chinese carmakers on top of a pre-existing 10% duty on EVs made in China.
The EU tariffs are currently provisional as the union’s investigation into China’s subsidies for domestic EV makers continues. EU officials have alleged that the rise in Chinese EV imports into the region is boosted by unfair subsidization allowing for cheaper China-made EVs to undercut its domestic players.
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Photo courtesy: MG Motors