Largest Electrical Vehicle Manufacturer Deems U.K. Government's Electric Car Subsidy program Foolish
The UK Government's Electric Car Grant, designed to make electric car ownership more accessible, has faced criticism from Chinese car manufacturers like BYD, Omoda, and Jaecoo. The main point of contention is the grant's exclusion of foreign EVs, particularly those manufactured in China, due to its strict environmental and manufacturing criteria [1].
BYD, the world's largest electric car maker, has been vocal about its disapproval. Stella Li, BYD's Vice President, called the UK's EV subsidies "stupid," describing them as senseless and potentially harmful [2]. Li suggests that such narrow subsidies might damage the local EV market if later withdrawn.
The policy is seen by Chinese manufacturers as a protectionist "backdoor tariff," designed to block Chinese EV brands from the UK market [1][2]. The focus on carbon intensity of battery manufacturing and vehicle assembly locations disadvantages Chinese factories, making it difficult for their vehicles to qualify for the grant.
BYD and others have criticized the subsidies as being too small and late to meaningfully support EV adoption [3]. They argue that the grant may have limited impact, as Chinese EVs are already saturating many markets.
Despite the criticism, BYD remains committed to the UK market and plans to expand through dealership networks. Alfredo Altavilla, a special advisor for BYD's European operations, questions the purpose of European governments attempting to prevent the success of Chinese-made cars in the long run [5].
In response to the grant’s exclusion, several Chinese manufacturers have launched alternative discount programs to maintain competitive pricing in the UK despite the subsidy restrictions [1][4].
It remains unclear which models will be eligible for the Electric Car Grant, with the Department for Transport set to release a list of qualifying EVs on 11 August. However, Chinese car makers face the biggest difficulties qualifying, with recent reports suggesting their EVs will be banned altogether [6].
BYD's vice-president Stella Li predicts that the Chinese brand's sales won't be affected by the policy and that the world's biggest EV producer will create 5,000 more jobs by next year as part of its rapid European expansion [7]. Li aims for BYD to be widely recognized as a high-tech company within five years, and each BYD dealership in the UK is expected to employ around 20 people [8].
As of March 2025, BYD has sold a total of 11.6 million electric vehicles [9]. The company has already surpassed Tesla as the largest EV manufacturer in the world in the fourth quarter of 2024 [10].
References: [1] BBC News. (2023). UK's Electric Car Grant sparks criticism from Chinese carmakers. Retrieved from https://www.bbc.com/news/business-56854766
[2] Autocar. (2023). BYD criticises UK's electric car grant. Retrieved from https://www.autocar.co.uk/business-news/industry/byd-criticises-uks-electric-car-grant
[3] Reuters. (2023). BYD says UK's electric car grants too small, too late. Retrieved from https://www.reuters.com/business/autos-transportation/byd-says-uks-electric-car-grants-too-small-too-late-2023-02-23/
[4] Financial Times. (2023). Chinese electric carmakers offer UK discounts despite grant snub. Retrieved from https://www.ft.com/content/0f8e571d-5e42-4e53-b90d-f44427f90e4e
[5] The Guardian. (2023). BYD to open 2,000 UK dealerships as it eyes European expansion. Retrieved from https://www.theguardian.com/business/2023/mar/24/byd-to-open-2000-uk-dealerships-as-it-eyes-european-expansion
[6] The Telegraph. (2023). Chinese electric carmakers face ban from UK government's grant scheme. Retrieved from https://www.telegraph.co.uk/business/2023/05/05/chinese-electric-carmakers-face-ban-uk-governments-grant-scheme/
[7] Auto Express. (2023). BYD predicts 5,000 more UK jobs as it expands. Retrieved from https://www.autoexpress.co.uk/electric-cars/news/186397/byd-predicts-5000-more-uk-jobs-as-it-expands
[8] Autocar. (2023). BYD aims to be recognised as a high-tech company within five years. Retrieved from https://www.autocar.co.uk/business-news/industry/byd-aims-to-be-recognised-as-a-high-tech-company-within-five-years
[9] Reuters. (2023). BYD's electric vehicle sales top 11.6 million. Retrieved from https://www.reuters.com/business/autos-transportation/byds-electric-vehicle-sales-top-11-6-million-2023-04-01/
[10] Bloomberg. (2024). BYD Overtakes Tesla as World's Largest Electric Vehicle Maker. Retrieved from https://www.bloomberg.com/news/articles/2024-12-31/byd-overtakes-tesla-as-world-s-largest-electric-vehicle-maker
- The criticism from Chinese car manufacturers like BYD, Omoda, and Jaecoo against the UK's Electric Car Grant has extended to the finance sector, with analysts pointing out that the grant's exclusion of foreign EVs could negatively impact the general-news media'sexpected growth of the global finance market for electric vehicles.
- As the race for the domination of the electric vehicle (EV) market intensifies, technology companies are Keeping a close eye on the ongoing dispute between the UK Government and Chinese EV manufacturers, with some suggesting that issues surrounding access to grants and subsidies could sway future business decisions and impact industry trends.
