Motorists are expected this year to benefit from an electric car price war – one driven not by the market but by governments in Britain and China. For the first time, the UK has required 22% of new cars sold in 2024 to be electric and, thanks to Beijing’s generous subsidies, cut-price Chinese cars will help meet the demand. There is a trade-off. While Britons can access affordable green motoring, China potentially hoovers up manufacturing prowess and jobs.
Conservative politicians seem relaxed about sending such work and technology abroad. Jeremy Hunt, the chancellor, made the case against protectionism at Davos, a policy he has often criticised. He trusts the invisible hand of the market even when it punches Britons in the gut, such as the blow felt today in south Wales. Tata Steel’s Port Talbot blast furnaces will close with the loss of thousands of jobs, instead of the plant making a planned transition to a greener steel industry.
