Car manufacturer Geely, a prominent company in China, has set its sights on British consumers and potentially establishing manufacturing facilities in the UK. Despite not being widely recognized in the UK market, Geely holds ownership stakes in Volvo, Lotus, and the iconic black cab producer LEVC. Geely has ambitious plans to introduce 10 electric and plug-in hybrid models to the UK market within the next three years, aiming to sell 100,000 vehicles annually.
The first model to be launched in the UK is the EX5, an all-electric luxury sports utility vehicle that competes with Tesla’s Model Y. Notably, Geely’s EX5 is priced significantly lower than Tesla’s flagship model, starting at just under £32,000 compared to Tesla’s £45,000. Geely also offers an EV Grant of up to £3,750 towards the purchase of the EX5.
The UK has seen a surge in Chinese car manufacturers entering the market due to the high demand for electric vehicles and the absence of import tariffs. Over 10 Chinese automotive brands are currently available in the UK, posing a substantial challenge to traditional European manufacturers.
Recent data from the Society of Motor Manufacturers and Traders revealed that Chinese car companies accounted for 12% of all new car sales in the UK last month. MG, a renowned British car brand now under Chinese ownership, outsold major competitors like Renault and Tesla, selling 14,577 cars in September.
Another Chinese automaker, BYD, experienced an impressive 880% increase in sales compared to the previous year, selling 11,271 vehicles in the UK last month. This surpassed the combined sales of Honda, Citroen, and Fiat.
In terms of online interest, MG dominated the top five most searched-for new electric cars on Autotrader, led by its S5 model. Geely’s UK head, Michael Yang, expressed openness to utilizing existing Lotus and LEVC factories in the UK for manufacturing, highlighting the potential advantages of local production.
The UK government is reportedly eager to attract Chinese car manufacturers to establish production plants in the country to stimulate investment and job creation, drawing parallels to the Japanese automakers’ arrival decades ago.
However, concerns have been raised regarding Beijing’s increasing influence in the UK, particularly following the dropping of spying charges against two individuals amid accusations of prioritizing economic ties with China.