Ex-Hyundai UK boss warns of Chinese stock ‘liquidation’ in Europe

The former president and CEO of Hyundai Motor UK Tony Whitehorn has warned the European car market is set for a deluge of Chinese product in coming years.

His warning came at the Motor Ombudsman and Radius Law Automotive Business & Law Conference in London today.

It followed the move by US President Joe Biden to quadruple tariffs on electric vehicles from China to 100%, effectively slamming the door on one of the world’s biggest passenger car markets. “The only way to go is Europe,” said Whitehorn.

Whitehorn said Chinese OEMs sold around 7 million cars last year and they have production capacity of 20 million vehicles.

He forecast that of the 91 OEMS in China making EVs, 15 would come to the UK and “they are big”. BYD, Chery, Saic and Great Wall will be followed by others he said.

“The Chinese produce excellent vehicles. The cost is significantly less than what other manufacturers are producing. They have 10 years of building up their inventory and expertise in electrified vehicles. They have big economies of scale. Their capacity is to produce not 7 million but 20 million.

“You need to get rid of these vehicles elsewhere. They cannot go to America with the tariffs Joe Biden has just put it.

“So, who is coming to the UK. Chery is already here with Omoda. SAIC are here with MG and sold 80,000 vehicles last year. BYD are already here and have about 30 dealers. Great Wall have about 50 dealers.” Other Chinese brands are also in the pipeline.

“The Chinese are coming into Europe, they cannot really go anywhere else to liquidate the 20 million capacity they have,” he said.

The UK government has already said it will consider tariffs if the market is swamped by cut price Chinese cars.

Secretary of State for Transport, Rt Hon Mark Harper MP, said the UK had very robust measures in place for fair international trade.

The European Commission could impose tariffs on Chinese EVs from if it decides that they are receiving unfair subsidies.

It ordered that imports of Chinese-built cars into the EU should be recorded from that March , with the potential to retrospectively apply an additional tariff over and above the 10% currently applied.

The Commission is carrying out an anti-subsidy investigation into Chinese battery EVs to determine whether to impose tariffs to protect EU producers.