The boss of Vauxhall-owner Stellantis last month warned of an “invasion” of Chinese electric cars.

Carlos Tavares said Stellantis faces a “brutal scenario” where it must compete with Chinese-made cars which are a quarter less expensive while having to invest billions into electrification.

He is not alone in raising concerns, as other executives believe UK and Europe could be too slow in responding.

Cars can be made with greener energy in Europe, which ought to mean they receive more favourable tax and tariff treatment.

This keeps Western carmakers competitive as China is still reliant on carbon-intensive steel.

One industry figure said Chinese-made cars should face higher tariffs, while domestically-built vehicles should receive better tax treatment because of greener production.

BYD overtook Tesla as the world’s top electric car maker including plug-in hybrids last year.

It aims to outpace Elon Musk’s brand on purely battery-powered cars in 2023.