According to foreign media reports, British Prime Minister Keir Starmer recently announced that he will relax the mandatory rules for the sale of electric vehicles in order to ease the impact of the US tariff policy on the local auto industry. This policy adjustment may bring new market opportunities for Chinese auto parts enterprises, especially automotive wiring harness factories and supporting suppliers.

Core content of policy adjustment

According to the latest document from the British Department for Transport, the new policy mainly includes three measures:

1. Extend the transition period for traditional fuel vehicles: Extend the sales period for hybrid vehicles from 2030 to 2035, and exempt Aston Martin, Bentley and other niche luxury brands from electric sales targets.

2. Lower emissions fines: The fine for vehicles that do not meet the latest emissions standards has been reduced from £15,000 to £12,000.

3. Increase infrastructure investment: £2.3 billion for charging network expansion and tax breaks for car purchases.

Analysts pointed out that this "flexible transformation" strategy is designed to win time for car companies to upgrade technology, and the expansion of supporting infrastructure will directly drive the demand for electric vehicle wiring harnesses, charging modules and other components. The wiring harness suppliers represented by China Aichie Tech are expected to become the preferred choice for the diversification of the supply chain of British car companies by virtue of their high cost performance and rapid response ability.

USA tariffs force a restructuring of European supply chains

Starmer's administration has made it clear that the change is a response to the Trump administration's 25 percent tariff on imported cars. Although the UK faces a lower tax rate (10 per cent) than the EU and China, JLR has suspended exports to the US, exposing supply chain vulnerabilities.

Notably, the UK's statement specifically emphasized the need to "strengthen global trade relations." This provides a strategic opportunity for Chinese automotive wire harness factories:

• Substitution effect: European car companies may accelerate the search for non-US supply chains, Chinese wiring harness companies account for 30% of global production capacity, technology maturity comparable to Europe and the US.
• Local cooperation: Companies such as Aichie Tech Manufacturing can circumvent tariff barriers by setting up joint ventures with UK charging operators.

The competitive advantage of Chinese enterprises

1. Cost efficiency: The cost of high-voltage wiring harnesses for electric vehicles made in China is 20-30% lower than that in Europe and the United States, and has passed international certifications such as ISO 6722.

2. Customization ability: For the UK market, manufacturers such as Aichie Tech Manufacturing can quickly adjust the wiring harness specifications (such as right rudder model adaptation).

3. Technical collaboration: China takes the lead in lightweight technology of 800V high-voltage wiring harnesses, matching the demand for high-end electric vehicles in the UK.

New developments in global cooperation

Starmer recently held intensive consultations with European Commission President von der Leyen and German Chancellor Scholz, proposing the establishment of a "European electric vehicle supply chain alliance." However, industry insiders believe that it is not realistic to completely exclude the Chinese supply chain:

• UK-based Charging pile company EO Charging has adopted Chinese automotive wiring harness solutions.
• Chinese companies occupy 60% of the global market share in key sectors such as copper cable processing and insulation materials.

We have taken note of the positive signals from the UK policy and have launched an accelerated program for UK certification, especially for charging pile dedicated wiring harness solutions that meet UKCA standards.

In the short term, the British policy buffer period will extend the production of traditional models and drive the demand for traditional automobile wiring harnesses; In the medium and long term, infrastructure investment will promote the growth of the charging network wiring harness market. For Chinese supply chain enterprises, it is necessary to focus on:

• UK localised production requirements (e.g. potential new rules of origin)
•       Direct connection with companies such as Jaguar Land Rover and charging operator BP Pulse