The United Kingdom, which has not imposed additional tariffs on Chinese electric vehicles, is considering levying high tariffs of up to 45.3%, a level similar to that of the European Union (EU).

According to The Times, the background behind the UK government's review of a policy shift is the rapidly growing influence of Chinese automakers in the UK automotive market.

From January to August of this year, the combined market share of five major Chinese automotive groups—Geely, Chery, SAIC, BYD, and Leapmotor—reached 19.7% in the UK new car market.

This is nearly a fourfold increase from their 5% market share in 2021.

During the same period, the market share of Chinese automakers in the EU market stood at 9.6%, meaning the UK's figure is double that of the EU.

Tariffs are cited as one of the factors creating this difference between the two markets.

Claiming that subsidies from the Chinese government could harm the European automotive industry, the EU additionally imposed countervailing duties of up to 35.3% on Chinese EVs starting in 2024.

When combined with existing tariffs, the total reaches up to 45.3%.

In contrast, the UK has maintained a baseline tariff of 10%.

Leveraging relatively low tariffs and price competitiveness, Chinese automakers rapidly increased their sales of electric and hybrid vehicles in the UK market.

In addition, pressure from the EU is compounding the UK's dilemma.

The EU is linking the issue of tariffs on Chinese EVs to whether UK-made automobiles will be included in the so-called "Made in Europe" policy, which favors products manufactured within the bloc.

This means that if the UK fails to erect trade barriers against Chinese EVs comparable to the EU level, British-made cars could face disadvantages in receiving subsidies or tax benefits in the European market.

Caught in a situation where it must attract investment from Chinese companies while preserving the EU export competitiveness of existing British auto plants, the UK government finds itself at a crossroads.

Similar concerns are emerging in South Korea, where sales of Chinese EVs are rapidly increasing.

In the first half of this year, the proportion of Chinese-made vehicles among newly registered EVs in South Korea reached 35%, a figure that includes not only Chinese brands like BYD but also Tesla vehicles manufactured at SAIC's plant in China.

The domestic automotive industry warns that intensified price competition with Chinese EVs could reduce the investment capacity of domestic finished-car and auto-parts makers for future vehicles, and is demanding tax support and improvements to subsidy systems for domestically produced EVs.

(Reported by Kim Minjeong | Video Editing by Lee Youjin | Design by Lee Jung-joo | Produced by SBS Digital News)