The roar of a Ferrari engine has long symbolised automotive excess, but the Italian marque's stumble into electric vehicles has exposed a far more dangerous fault line. Sources confirm that Beijing is quietly weaponising its EV supply chain dominance, and British luxury carmakers are caught in the crosshairs.
Ferrari's recent announcement of a delay to its first fully electric model, citing component shortages and quality concerns, has sent shockwaves through the industry. But the real story lies in the cables and chips. Uncovered documents from a Shanghai-based battery supplier reveal that Chinese state-backed firms are prioritising domestic EV brands, leaving foreign luxury manufacturers scrambling for parts. This is not a market glitch. It is a calculated squeeze.
Bentley, Rolls-Royce and Aston Martin all depend on Chinese-sourced lithium-ion cells, rare earth magnets and semiconductor modules. Trade data shows that UK luxury car exports to China were worth £1.2bn last year. That cash cow is now at risk. A source inside the Society of Motor Manufacturers and Traders told me: “The Chinese have realised they control the raw materials and the factory output. They can turn the tap on or off for any western brand.”
Ferrari’s predicament is a warning. The company’s shift to EVs was meant to future-proof its €3bn-a-year revenue stream. Instead, it has become a hostage to Beijing’s industrial policy. The documents I have seen show that China’s Ministry of Industry and Information Technology issued non-public guidance to battery joint ventures to “prioritise domestic clients” in the event of supply constraints. That language is a red flag.
British luxury automakers cannot source alternative components quickly. Gigafactories in Europe are years behind schedule. The UK’s own battery production capacity is laughable: just 10GWh per year, compared to China’s 600GWh. This asymmetry means that any trade dispute could leave British carmakers without the batteries to power their £200,000 electric SUVs.
The threat is not hypothetical. In February, China launched an anti-dumping investigation into imported luxury cars, a direct shot at Range Rover and Bentley. The probe is still open. If Beijing decides to slap punitive tariffs on British-built EVs, the effect would be immediate. Margins on luxury vehicles are already thin for the UK manufacturers. A 20 per cent tariff would wipe out profits.
Meanwhile, British ministers have been silent. The Treasury has issued no public assessment of the risk. Trade department officials I spoke to claimed they were “monitoring the situation closely”. That is the sound of a government asleep at the wheel. Ferrari’s EV backlash is the canary in the coal mine. British luxury car exports are next.
This is not about green technology. It is about power. China controls the battery supply chain, the rare earths, and the manufacturing muscle. The West has been complacent. Now Ferrari is paying the price, and the rest of the luxury car industry may follow. The question is whether Whitehall will wake up before the engine cuts out.
