The Society of Motor Manufacturers and Traders (SMMT) has called on the European Union to reconsider the proposed Industrial Acceleration Act (IAA), warning that excluding the UK from the Made in Europe framework could undermine a highly integrated automotive partnership.
€80 billion trade relationship
The automotive relationship between the EU and the UK is valued at around €80 billion a year, reflecting the deep integration of supply chains that has developed over decades.
The UK remains the EU's largest export market for passenger cars, with EU automakers exporting €39.7 billion worth of vehicles to the UK each year, as well as €39.7 billion worth of auto components 9.1 billion
Risk of competitive disadvantage
According to the SMMT, excluding UK-made vehicles, parts and batteries from IAA benefits, particularly those related to fleet decarbonisation, would put UK manufacturers at a competitive disadvantage.
This could reduce output, weaken EU supply chains and increase costs for consumers.
Decarbonization momentum at risk
Industry representatives warn that limiting the UK's participation in incentive schemes could disrupt investment signals at a critical stage in the transition to low-emission mobility. Such a move could slow progress towards climate goals and weaken the broader decarbonization agenda.
SMMT chief executive Mike Hawes stressed that amid rising geopolitical pressures
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