The boss of one of the most popular Chinese car brands has described Labour's new Electric Car Grant as "stupid", just days after it was outlined.
Labour introduced the new £650million Electric Car Grant earlier this month in a bid to get more drivers to ditch petrol and diesel vehicles and invest in EVs.
Motorists are able to get up to £3,750 off the list price of a new electric vehicle that costs less than £37,000, which has been welcomed by large swathes of the industry.
However, Stella Li, executive vice president of BYD, criticised the new Electric Car Grant, saying it would hurt the UK's EV market in the long term.
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|The boss of BYD described Labour's Electric Car Grant as 'stupid'
Under the terms of the Zero Emission Vehicle (ZEV) mandate, manufacturers must have at least 28 per cent of new car sales come from electric vehicles.
This target will continually increase over the coming years, reaching 80 per cent in 2030, before 100 per cent of all car sales will be zero emission five years later.
There has been some consternation around the eligibility of vehicles included in the scheme, given that manufacturers must adhere to environmental criteria.
This includes "Science Based Targets", which could rule out several brands from taking advantage of the scheme to benefit drivers with new electric cars.
Speaking to the Financial Times, Li described the grant as "stupid", adding: "It does not make any sense.
"This subsidy actually sounds like they will give some companies a benefit, but it’s more like a drug. If you get rid of this, you will suffer."
Speaking at the time of the ECG announcement, Future of Roads Minister Lilian Greenwood said she did not expect cars assembled in China to be included in the grant scheme.
She told the BBC: "The grant is restricted to those manufacturers that reach minimum environmental standards.
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|Stella Li warned that the subsidies could damage the UK electric car market
"And, frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant."
The latest data from the Society of Motor Manufacturers shows that BYD has already sold 19,390 vehicles in the first six months of the year across the UK.
Despite it being the brand's first 18 months in the market, it has already outsold established car brands including Citroen, Cupra, Dacia, Fiat, Honda, Mazda and Seat.
Other Chinese brands are also making themselves known in the UK car market, such as Jaecoo (8,399), Leapmotor (542) and Omoda (6,941).
BYD | BYD Chairman Wang Chuanfu with Prime Minister of Hungary Viktor Orbán in a BYD Sealion 7Alfredo Altavilla, former boss of ITA Airways and special adviser for BYD's European operations, said European governments could not afford to fight against Chinese-made cars.
BYD recently announced that it would be establishing its European headquarters in Hungary, which saw Prime Minister Viktor Orban take a ride in an electric car.
It is also in the development phase of a new £1billion factory in Turkey in a bid to avoid hefty tariffs placed on Chinese manufacturers exporting to the European Union.
As part of the tariff scheme, BYD is subject to a duty of 17.4 per cent, while Geely is to pay 19.9 per cent, and SAIC was slapped with a 37.6 per cent tariff.