The Italian luxury carmaker Ferrari has encountered significant resistance in China following its aggressive push into the electric vehicle market, a development that analysts say could benefit British automakers with established reputations for quality and tradition. Ferrari’s announcement of its first fully electric model, set for production by 2025, was met with skepticism from Chinese consumers and regulators, who have criticised the brand’s limited range of battery-powered options and its reliance on imported components. Sources close to the Chinese Ministry of Industry and Information Technology indicate that Ferrari’s licensing applications for new EV models have been delayed due to compliance issues with local content requirements.
This setback comes at a critical juncture for Ferrari, which invested heavily in its Maranello plant to produce electric vehicles. The company’s share price has fallen by 4% in Milan trading this week, reflecting investor unease. In contrast, British automakers such as Jaguar Land Rover and Bentley have been quietly expanding their EV offerings in China, leveraging their heritage brands and long-established dealer networks. Jaguar Land Rover reported a 12% increase in EV sales in China last quarter, driven by the I-Pace model, which qualifies for local subsidies under China’s New Energy Vehicle programme. Bentley’s launch of its first hybrid SUV, the Bentayga Hybrid, has also been well-received, with pre-orders exceeding initial production targets.
The shift in market dynamics highlights a broader trend in the Chinese automotive sector, where consumers are increasingly prioritising reliability and local adaptability over prestige brand cachet. Ferrari’s struggles are not unique; other foreign luxury car makers have faced similar challenges in navigating China’s complex regulatory environment and rapidly evolving consumer preferences. However, the British industry’s ability to pivot quickly, partly due to its smaller scale and closer government-industry collaboration, appears to be an advantage. The UK government recently announced a £2 billion fund to support EV research and development, with a portion allocated to exporters targeting the Chinese market.
Institutional voices in London have been cautious but optimistic. Lord Gregson, a former trade minister and current chairman of the British Automotive Association, described the situation as a “window of opportunity” but warned against complacency. “British firms must not assume that Ferrari’s misstep gives them a free ride. The Chinese market is unforgiving, and competition from domestic manufacturers like BYD and Nio is intensifying,” he told the Financial Times. Indeed, Chinese EV makers have captured more than 80% of the domestic market, and their technological advances in battery technology and autonomous driving are narrowing the gap with international brands.
The geopolitical implications are also notable. As trade tensions between the West and China persist, British automakers are betting on their reputation for engineering excellence and their agility in adapting to local norms. Unlike Ferrari, which has been perceived as aloof in its approach to Chinese regulators, British firms have invested in local partnerships and production facilities. Jaguar Land Rover’s joint venture with Chery Automobile has been particularly effective, allowing it to qualify for tax breaks and government EV procurement contracts.
From a strategic perspective, this moment represents a test of soft power for the British automotive industry. It is not merely about selling cars; it is about projecting a image of reliability and innovation that resonates with Chinese consumers. Ferrari’s stumble suggests that even the most iconic luxury brands cannot rest on their laurels. For Britain, the challenge is to consolidate these gains without provoking a protectionist backlash from Chinese authorities. The coming months will reveal whether British automakers can turn this opportunity into a lasting competitive advantage.
