UK's £400m electric bus scheme accused of 'subsidizing China'

The most common bus model registered in the UK, the Enviro bus, is manufactured by Shenzhen-based BYD. Photo: Paul Thomas/Bloomberg via Getty Images

A £400 million scheme designed to encourage the uptake of electric buses is effectively subsidizing Chinese companies at the expense of British ones, a transport group has said.

Under the so-called zebra crossing initiatives, local authorities and bus operators can apply for grant funding to support the purchase of zero-emission buses.

It is part of the Government's 'Bus Back Better' plan during the pandemic, which aims to fund the purchase of 4,000 buses, about a tenth of the UK's total fleet.

However, some companies complain that tender rules exclude projects to converting existing gasoline or diesel buses to electric ones, while helping procurement of vehicles that depend on Chinese manufacturers.

Companies such as Sheffield-based Magtec, Scarborough-based Kleanbus and Norfolk-based Equipmake claim that converting existing diesel buses (a technique known as «re-engine») is a greener alternative than buying new vehicles.

< p>But they say the government grant scheme currently incentivizes the purchase of new buses rather than refurbishment, which is effectively distorting the market.

Currently, around 70% of electric buses purchased in the UK are made in China or contain Chinese-made components. such as batteries, according to Magtec's analysis of official data.

For example, the most common bus model registered in the UK right now is the Enviro bus, which is manufactured by Shenzhen-based BYD.

But Magtec and others argue that operators and local authorities should also be allowed to receive grant funding for power replacements. A scheme similar to Zebra already makes this possible in Scotland.

It will also accelerate the transition to electric buses overall, they say, increasing the number of buses that enter service each year.

< img src="/wp-content/uploads/2024/03/c795a519ca902df77d12fa4ca53a077c.jpg" /> Magtec's Marcus Jenkins called on the Government to help develop and grow the UK manufacturing industry

Marcus Jenkins, founder and director of Magtec, said: «At the current rate it will take more than 30 years to replace the diesel fleet with zero-emission buses.»

“We urge both major parties to support bus retrofits to help reduce harmful emissions and help the development and growth of the UK manufacturing industry.»

Last year, Joe Tye, chief executive of Kleanbus, also warned that the UK was «waiting to act.»

Government said it «did not accept» the claim that the Zebra scheme subsidizes Chinese manufacturers.

The spokesman added: «More than 80% of the buses running in our cities are made in the UK, and British manufacturers make up more than half.» buses ordered through our Zero Emission Bus Scheme, helping to create jobs across the country and usher in a new, cleaner generation of bus manufacturing.»