Fiat's U.K. Sales Plight Sends Warning to European Automakers Nervous Over Tariffs

If Europe’s legacy automakers are questioning the imposition of punitive tariffs on unfairly subsidized Chinese battery-electric cars, it’s worth looking at possible early warning signs of new-car registrations for October in the U.K.

While the Society of Manufacturers and Motor Traders (SMMT) trumpets the BEV sales growth as a positive in the month’s figures, it is important to note that both BYD and Chery’s Omoda brand are outselling Fiat in a market that is not imposing tariffs.

What stands out most is that, while the Chinese-owned MG brand has become established in the U.K. with a range of powertrain options including a BEV and sells 5,303 units in the month, the BEV offerings from BYD and Omoda soar ahead of the established Fiat nameplate from a virtual standing start.

BYD sees a 326% year-on-year rise in its sales from 183 for October 2023 to 780 while Omoda, in its first year of sales, hits 870 cars. By contrast, Fiat registers a 27% drop in sales compared to 2023 to slump to just 779 units sold.

However, the Chinese loser in this picture is Great Wall Motor (GWM) whose Ora 3 sees sales slide from 92 cars in October 2023 to just 51 vehicles this last month.

This appears to be largely about pricing because the car’s starting price of £31,995 ($41,259) makes it look expensive compared to £26,195 ($33,779) for the BYD Dolphin, £25,235 ($32,541) for Omoda’s e5 and £24,995 ($32,232) for Fiat’s e500.

So, why did the cheapest Italian model fare so badly? It suffers from more limited battery power and range and a lot less interior space than both the BYD and Omoda cars, which are perceived as better options for families.

Of course, this is data from just one month and a multitude of reasons can come to play for a sudden change in a brand’s fortunes. It’s also worth bearing in mind that WardsAuto heard from one Chinese automaker, GAC, that even the EU’s tariffs can’t stop its ability to undercut legacy automakers' prices.

That said, this does give a potential hint that if the Chinese BEV makers are able to trade tariff-free, there could be a real danger for legacy automakers like Fiat, watching sales give way to the cheaper, better-value options coming out of China.