Chinese carmakers hold talks with UK officials over manufacturing in Britain

A host of Chinese brands are expected to enter the UK car market over the next 18 months with manufacturers hoping to quickly grab market share just as Japanese carmakers did in Britain in the 1980s .

Companies are exploring local manufacturing options as the cost of assembly in China rises as a result of rising living standards across the country.

The location of the auto plants will depend on what deals, subsidies and other incentives are offered by European nations. High electricity prices in Britain are believed to be a barrier for manufacturers.

However, Britain is still seen as an attractive option thanks to the growing supply of green energy, the huge potential of offshore wind power and the fact that it is the second largest car market in Europe after Germany.

Chinese manufacturers are looking abroad as the domestic market becomes saturated. Local car prices are falling as the pandemic-era boom in vehicle demand comes to an end, leaving the market oversupplied.

A government spokesperson said: “The government is determined to ensure the UK remains one of the best places in the world for car manufacturing and liaises regularly with car companies to ensure investment in the UK.”