Every summer, more than 200,000 car enthusiasts make the pilgrimage to Britain’s Goodwood Festival of Speed near the south coast to watch fast cars roar through clouds of smoke.
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(Bloomberg) — Every summer, more than 200,000 car enthusiasts make the pilgrimage to Britain’s Goodwood Festival of Speed near the south coast to watch fast cars roar through clouds of smoke.
This year, the crowds — traditionally known for turning up in their old British sports cars, cigars in hand — were greeted by a new sight: a slew of shiny new Chinese electric cars.
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Chinese automakers have been flocking to the show in a bid to broaden their appeal to European consumers after their initial growth in the market slowed.
BYD, China’s largest automaker, displayed nine models, drawing the most attendees of any domestic rival, along with Chery Automobile’s Omoda, the more upscale Jiaco brands and luxury carmaker Hongqi. Last year, Nio Inc. was the only Chinese automaker to attend the event.
“It doesn’t just mean we want to sell them the car – it means we’re coming, we’re here in the UK now, with a good product and a good brand,” Chery UK president Victor Zhang said in an interview.
Onlookers were eager to catch a glimpse of BYD’s new Yangwang U9 electric supercar, which performed a dance to the music by raising and lowering the suspension on its wheels. The main trick is to go from 0 to 100 kilometers (62 miles) per hour in 2.36 seconds. Meanwhile, in Hongqi, female performers in bright red dresses paraded the cars.
One of the most important social events in the British summer calendar, the Goodwood Festival is a festival for Ferrari NV and Lamborghini S.p.A. fans held on a country estate that dates back more than four centuries. Visitors can watch hill climbs and other off-road challenges alongside a wide display of classic cars.
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The rally in Chinese automakers at the festival comes as their efforts to gain market share in Europe’s electric vehicle market have slowed, after an initial rapid advance led by SAIC Motor Corp., which bought the now defunct British brand MG in 2007. BYD’s offering includes models such as the Atto 3 crossover priced at £37,695 ($48,742).
A BYD representative at its Goodwood stand said people were starting to recognise the brand through its advertising at Euro 2024, where England reached the final. BYD has also set up a mini-playground for children at the festival to kick a ball around.
The surge in electric vehicle shipments from China has prompted the European Union to investigate unfair subsidies to the sector, and last week the bloc decided to impose additional tariffs on Chinese-made electric vehicles of up to 38%. Currently, Chinese-owned brands account for less than 10% of electric vehicle sales across the region.
The decision comes after the US imposed 100% tariffs on electric car imports from China, while Canada is considering additional tariffs. In Britain, SAIC’s MG4 hatchback was the second-best-selling electric car last year. The UK’s new Labour government has yet to make clear its position on the potential tariffs.
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Chery’s Zhang said he hoped the UK would not join the EU. “It’s not good for business, it’s just hurting customers because in the end the customer will have to pay,” he said.
Trade tensions are likely to be far from the minds of Goodwood visitors, with Formula 1 champion Max Verstappen set to appear at the four-day event thanks to a break in the racing calendar, along with other F1 stars such as Aston Martin’s Fernando Alonso.
Chery CEO Zhang said he expects buying a Chinese brand to become as normal as buying a Kia or Hyundai.
“Twenty years ago, when Kia or Hyundai came to the UK, you might have had similar concerns. But now the British people are embracing Korean brands. I think we will become similar,” he said.
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