Starting from January 1, 2024, a customs duty of 10% will be imposed on electric vehicles crossing the English Channel. Both the British government and automakers are hoping for a postponement of this measure.

Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), the British automotive lobby, remains optimistic about the possibility of reaching an agreement with the European Union (EU) to delay or cancel the customs duties. However, EU member countries have already given their approval to implement this new 10% tax.

To avoid this, vehicles will need to have at least “45% of the value of their components coming from the European Union or the United Kingdom.” Currently, this condition is far from being met, especially concerning batteries, which are predominantly imported from China.

The United Kingdom is a crucial market for European automakers, prompting Berlin to support London under pressure from German manufacturers concerned about their exports to the British market. Germany’s dominant position in the European automotive industry could even lead the European Commission to postpone the implementation of customs duties.

Ursula Von der Leyen, President of the European Commission, has also launched an investigation into subsidies granted to Chinese electric vehicles.

The European Union states that it will not tolerate “unfair competition,” while China denounces “blatant protectionist behavior.”

The United Kingdom is striving to become an attractive location for automakers.

For example, the “Jaguar Land Rover” group plans to build an electric vehicle battery factory in Somerset, West England. Another example is Imerys, a French group specializing in minerals and industrial metals, which intends to become the “first integrated producer of lithium carbonate for batteries in the UK.” Lastly, Stellantis recently announced the opening of its first plant entirely dedicated to electric vehicles in England, in Ellesmere Port.

These initiatives demonstrate the United Kingdom’s efforts to maintain a thriving automotive industry despite the challenges posed by post-Brexit customs duties.