Currently reading: When Britain halted the flood of Japanese car imports

Aggressive export drive led by Datsun led to allegations of 'dumping'

Chinese brands are now voraciously gobbling up market share in the UK: from 5% in 2024, they’ve already stomached 8% in 2025.

This has caused much anxiety and even antagonism, and some people have called for restrictive measures to be taken against China’s car industry.

This is incredibly similar to the situation that existed in the mid-1970s, when Japanese brands were enjoying ever greater success at the expense of Britain’s own car firms.

In August 1973, British Leyland boss Lord Donald Stokes called for bans on foreign cars, TVs, electronic goods and even washing machines while an economically troubled Britain “got its house in order”, claiming the nation was “sitting back like a goose being plucked”.

Imported cars had achieved a record-setting market share of 32% that month, taking the annual total to 328,000 – of which 62,000 were Japanese.

Naturally the nation’s leading car importer was riled. Stokes’ remarks “make no economic sense and tend to mislead the public”, stated Datsun (Nissan) UK.

“He rarely quotes facts but confines himself to sweeping statements. He should look to his own affairs before seeking to advise Europe. Nobody can take seriously a suggestion that a trading nation like Britain should ban a wide range of imports.”

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Maybe not, but the idea of car import restrictions certainly was taken seriously, getting the backing  of SMMT president Gilbert Hunt, on the basis that “there is currently a very serious imbalance in trade”.“We are at a loss to understand your agitation,” replied Datsun UK in an open letter.

“Placing restrictions on Japanese cars will not help the British industry. It will mean only the selling of more Renaults, Fiats and Volkswagens. It may even hinder the British industry, since the suppression of high-quality competition is never a good recipe for stirring the enthusiasm of one’s own staff.”

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Ray Carter, a Labour MP for Birmingham – home to thousands of automotive workers – pressed the issue in parliament in January 1975.

“My call is not for a ban on the importation of Japanese cars but for the British industry to obtain a basis of fair trading in which British manufacturers can export to Japan in the same free and unhindered manner that Japanese manufacturers can export to Britain,” he said, pointing out that Japan was exporting some 62 times more cars than it was importing.

“Japanese manufacturers and dealers have been prepared to cut corners to gain the depth of penetration they now have into the British market and are currently offering cars at rates of interest on [HP] approximately one-third of what would have to be paid to buy a British car. That is felt by British manufacturers to be an unfair trading practice.”

The minister for trade’s response? “I sympathise with the fears which prompt such demands, but I do not think that it would be right for the [Labour] government to accept the logic which seeks to justify them.”

But that December, the SMMT met with its Japanese counterpart to make “its usual complaint” – and JAMA promised “the level of sales achieved in the latter part of 1975 would be continued for at least the first three months of 1976”, keeping its members’ share at about 10%. Why? We assume primarily because the SMMT threatened legal action under the Customs Duties (Dumping and Subsidies) Act 1969.

By April, the two trade bodies were arguing. The SMMT alleged Japanese firms weren’t honouring their ‘voluntary agreement’ – which JAMA vehemently denied, adding: “It appears the restraint expected of [us] simply means the substitution of [our] cars by other foreign cars.”

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The informality of the 10% ‘rule’ created another headache in early 1977, when Subaru announced its intention to enter the UK: which of Datsun, Toyota, Mazda, Honda and Colt (Mitsubishi) would have to give up some sales to make space for it?

Toyota’s answer was Datsun, as it sold more than half of all Japanese cars here. “We are at the short end of the stick,” concurred Mitsubishi. Incredibly, Datsun UK responded by claiming that no such restriction had ever been agreed to anyway.

But it certainly had been, and JAMA renewed its vow many times, upholding the share limit all the way to the end of 1999 – by which time calamitous BL was long dead. 

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