On the bustling streets of Beijing, electric vehicles whizz about freely and almost everywhere you look. Sleek saloons and SUVs glide silently past the crowds, while driverless shuttles share the road with humanoid robots taking part in public events. Charging points and battery-swapping stations line the roads, now as prevalent as petrol pumps once were.
London, by contrast, tells a very different story. Petrol and diesel vehicles still dominate the roads, while resistance to the Ultra Low Emission Zone (ULEZ) has exposed the political sensitivities surrounding green policies. The contrast raises a pressing question for policymakers and industry leaders alike: how can the UK compete in a rapidly electrifying global economy while meeting ambitious environmental targets?
The stakes are high. The UK pledged in 2020 to phase out fossil-fuel vehicles within 10 years. Yet industrial data paints a sobering picture. Car production in the first half of 2025 fell to its lowest level since 1953, signalling deeper structural challenges. While Britain’s automotive icons, including Jaguar, McLaren, and Aston Martin, maintain international prestige, they struggle to navigate a market increasingly dominated by electric mobility. Meanwhile, China has surged ahead, emerging as the world’s leading EV producer.
That rise has been far from accidental. Policymakers identified electric mobility as a strategic industry crucial to energy security and industrial upgrading. Wan Gang, a German-trained engineer and former Minister of Science and Technology, recognised early on that China could not compete with established automakers in combustion engines. Instead, EVs presented an opportunity to leapfrog older technologies.
From the early 2000s, China launched a coordinated industrial push, supporting not only car manufacturers but also battery producers, rare-earth suppliers, software developers, and charging infrastructure firms. The country’s vast domestic market, combined with strategic state support and market incentives, created fertile ground for rapid innovation.
The results have been remarkable. While China took nearly three decades to build its first 10 million EVs, the next 10 million rolled off production lines in just 17 months. Companies such as BYD and CATL now set global standards in battery density, cost, and charging speed. Domestic competition has driven progress, while foreign investment, including Tesla’s Shanghai Gigafactory, has been welcomed as a complement rather than a threat.
Industrial clustering has also been central to China’s success. Cities such as Changzhou have developed entire EV ecosystems, from raw materials to advanced control systems. Targeted subsidies and strategic planning allow firms to scale efficiently, fostering innovation without unnecessary duplication.
Technological breakthroughs, once dismissed as gimmicks – like three-minute battery swaps – have become commercially viable. Importantly, these advances emerged from private firms operating under competitive pressure, rather than through state protection, creating a dynamic market where companies vie on quality, price, and service.
By contrast, the UK’s EV sector has been hampered by inconsistent policy and limited industrial scale. A £650 million grant scheme to encourage EV adoption left many consumers and dealerships perplexed, with only a handful of models qualifying for the full discount. Fleet purchases dominate the market, while private buyers account for just 20% of sales.
Infrastructure remains a major challenge. A Royal Society of Chemistry survey found that two-thirds of drivers doubt the government can deliver adequate charging capacity by 2035. The collapse of Britishvolt, once valued at £800 million yet never producing a single gigafactory, exposed structural weaknesses. Without a large, coordinated domestic market, British firms struggle to achieve the scale necessary to compete internationally.
Brexit has further compounded uncertainty, leaving the UK navigating between EU industrial policy and a lack of a clear domestic strategy. While some iconic brands have introduced EV models, most lack comprehensive electrification plans, risking further industrial decline.
China’s experience demonstrates how coordinated industrial policy can shape both markets and consumer preferences. The UK possesses world-class universities, a proud automotive heritage, and deep financial resources, but lacks the policy coherence to harness these assets effectively.
Security concerns often dominate the political debate, with some figures warning that Chinese EVs are “computers on wheels” vulnerable to Beijing’s control. But in practice, Chinese investment has already contributed positively to the UK. Geely’s £480 million investment in the TX5 black cab factory in Coventry has sustained thousands of jobs for over a decade, while BYD-built electric buses are now fixtures on London’s streets.
Signs of pragmatic engagement are emerging. Octopus Energy recently launched an all-inclusive EV leasing package with BYD, combining car, charger, and smart tariff, enabling vehicle-to-grid charging. The offer saves drivers nearly £1,000 a year compared with petrol cars, while easing pressure on the grid.
In September, BYD broke the 10,000 mark in monthly UK sales for the first time, selling 11,271 vehicles and pushing its 2025 total past 35,000. Its market share has now reached 3.6%, making the UK its largest market outside China.
Consumer attitudes are shifting too. For Chinese automakers, the UK offers more than profit – it is a gateway to global visibility.
China’s EV revolution rests on long-term vision, coordinated policy, and openness to competition. A decisive industrial strategy – coordinating infrastructure, investment, and innovation – could revitalise Britain’s automotive sector, support the green transition, and secure a leadership role in the industries of the future.
