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Somerset gigafactory emerges as cornerstone of UK auto resilience
Nestled between Hinkley Point nuclear plant and Glastonbury Tor, a £5 billion battery facility is taking shape on what was once empty farmland. The Agratas gigafactory, slated to begin production next year, will supply Jaguar Land Rover's electric fleet and marks the UK's boldest bet yet on domestic EV manufacturing.
Chinese imports dominate UK market as domestic output halves
This week's data revealed a historic shift: the Jaecoo 7, a Chinese-made SUV, became the UK's top-selling car for the first time. Chinese brands now account for 15% of new registrations in 2026, up from just 1.3% five years ago. While the Jaecoo 7 is a petrol-hybrid, most Chinese imports are electric, underscoring the country's rapid ascent in the sector.
Government defends open market as critics warn of unfair competition
Business Secretary Peter Kyle visited the Agratas site this week to announce a £380 million government grant, framing the project as a buffer against economic volatility. When asked about the surge in Chinese imports, Kyle struck a cautious tone: "I don't want to prevent UK consumers having access to cars of their choice."
He acknowledged concerns over trade distortions but emphasized the potential for Chinese investment in UK factories, drawing parallels to Japan's automotive expansion in the 1990s. "If the conditions are right, I would absolutely welcome it," he said.
Industry voices divided
Shadow Business Secretary Andrew Griffith blamed the decline in UK car production-now half of what it was a decade ago-on government policies, particularly the ban on new petrol and diesel vehicles. "British car makers have been undermined by a foolish ban," he said, arguing it "sucked in imported EVs."
Reform UK's Robert Jenrick took a harder line, accusing Beijing of "cheating" and vowing tariffs and quotas to protect domestic jobs. "British car makers don't stand a chance against unfair Chinese competition," he said.
Global split: UK stands alone as EU and US impose tariffs
The UK's decision not to levy tariffs on Chinese EVs has accelerated imports, with Chinese firms investing heavily in UK dealer networks and marketing. In contrast, the EU and US have imposed duties to shield their markets. Canada recently rolled back some of its tariffs, while Spain has actively courted Chinese EV manufacturers, securing major factory investments.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), defended the UK's open-market approach. "The British car market has always been very open," he said, noting that Chinese brands are moving quickly to meet consumer demand. "At the end of the day, the consumer is right. They are offering attractive products at very competitive prices, good tech, and good build quality."
Agratas: A hedge against geopolitical and technological disruption
The Somerset gigafactory is positioned as a linchpin for the UK's automotive future. Agratas executives highlight their cutting-edge battery research, aiming to match Chinese advancements like ultra-fast charging. The facility also ensures Jaguar Land Rover can continue exporting to the US, where Chinese EVs face stiff barriers.
The project's significance extends beyond technology. In 2020, Elon Musk toured the same site as a potential location for Tesla's European gigafactory but ultimately chose Berlin, citing Brexit uncertainties. Now, the UK is betting on Tata Group's investment to anchor its supply chain-even as it remains dependent on foreign expertise.
"Economic resilience is about navigating a wildly changing geopolitical landscape," said one industry analyst. With China's dominance in EVs still in its early stages, the Agratas facility may prove critical in keeping the UK competitive.
