Experts have called for the UK to embrace Chinese investment in the electric vehicle sector to boost British industry and prevent the nation from falling behind in the mission to achieve net zero emissions.
It comes as reports suggest Chinese companies are interested in purchasing manufacturing factories in Germany amid speculation that Volkswagen is looking to rid itself of factories in a cost-cutting drive.
Citing sources, Reuters said Chinese officials and automakers are looking at German factories tipped for closure, with Volkswagen’s plants of particular interest.
If a Chinese company were to take over a major manufacturing plant in Germany, it would be a massive coup, giving China a foothold in the established European market and extending the growing influence the superpower has in the Western world.
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Experts have called on the Government to attract Chinese investment to the UK to solidify its place as the nation with the most EV sales
PA/REUTERS
Volkswagen has faced difficulties in recent years, with the company struggling to move towards a net zero future. In October, VW warned that it could be forced to shut three German factories and cut tens of thousands of jobs.
This would represent the first closure of a plant in the brand’s 87-year history with CEO Thomas Schäfer saying VW was “not earning enough money” from its current line-up of vehicles.
While China potentially looks at Germany as being a hotspot for manufacturing in Europe over the next few years, experts have called on the UK Government to attract more investment from China.
Recent data shows that the UK is Europe’s biggest market for EVs, having sold 382,000 battery electric vehicles in 2024, compared to 381,000 in Germany, 291,000 in France and 114,000 in Norway.
Volkswagen’s plan to close factories across Germany was met with mass protests and union condemnation
REUTERS
Speaking to GB News, Quentin Willson, founder of FairCharge and Electric Vehicles UK (EVUK) advisory board member, said the UK needed to be “realistic” and own the fact that the UK would not be able to build many electric vehicle gigafactories, prompting the need for foreign investment.
Willson continued: “The fact that Government has only earmarked a few billion shows how little they understand about the costs of building EV batteries at scale.
“The Chinese have a 10-year advantage over Europe in the sector so there’s opportunity to onshore their technology here – and EV car factories too – to generate GDP and jobs. We might also learn a trick or two.”
Dan Caesar, CEO of EVUK, echoed these calls, saying that Chinese and South Korean manufacturers will be the “biggest beneficiaries” of the switch to zero emission motoring, meaning that the UK should encourage as many Asian manufacturers to produce vehicles, describing it as a “no-brainer”.
BYD is one of the most popular Chinese electric vehicle manufacturers
REUTERS
Chancellor Rachel Reeves recently returned from China and praised agreements reached in Beijing to bring around £600million worth of investment into the UK over the next five years.
With Labour looking to ban the sale of new petrol and diesel cars from 2030, additional investment from China could kickstart further funding for more electric vehicles across the UK.
Dr Andy Palmer CMG, FREng, founder of Palmer Energy and EVUK advisory board member, said China was being “smart” with its possible interest in German factories.
He added: “Rather than view them as the enemy, we should, as Germany could be about to and Spain is actively pursuing, look at ways to collaborate and drive business and employment on our own shores.”
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Several Chinese manufacturers are looking to sell more electric vehicles in Europe and North America
REUTERS
In recent months, the United States, European Union and Canada have imposed tariffs on Chinese electric vehicle manufacturers over fears they are using “unfair practices” by selling cheaper models to harm legacy manufacturers in Europe and North America.
Mark Harper, who was Transport Secretary under Rishi Sunak’s Conservative administration in 2023, said the UK Government could consider imposing tariffs on Chinese companies, following in the footsteps of other major powers.
A Government spokesperson told GB News: “We are always vigilant to international developments and are very clear that any decision over the implementation of tariffs has to be the right one for our domestic automotive industry.”