9:06 am, March 5, 2026
The SMMT has hit out at new proposals at from the European Commission which would ‘discriminate against UK-made vehicles and components’.
The executive cabinet of the EU yesterday (Mar 5) published the ‘Industrial Accelerator Act’ which states that publicly funded projects must prioritise EU-made products – especially in sectors like EVs and batteries.
As part of the the plan, the EU is set to leverage over €2 trillion in public spending to support domestic manufacturing.
It is hoped that the move will help European carmakers combat the growing threat from China but the SMMT has raised ‘grave concerns’ about its impact on British manufacturing.
Bosses say the proposals would ‘damage a trading relationship worth almost £70bn annually’ and have called on governments to work together to find a solution.
Concerns have also been raised about whether the new legislation breaches the UK’s Brexit deal by putting UK manufacturers at a ‘systemic competitive disadvantage in the EU market’.
Responding to the new legislation, Mike Hawes, SMMT Chief Executive, said: ‘The UK automotive sector is gravely concerned by today’s “Made in Europe” proposals set out in the European Commission’s Industrial Accelerator Act.
‘As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost £70bn annually.
‘It is a position that the UK industry and government sought to avoid, given we are both each other’s largest customers and suppliers.
‘However, the strict EU assembly rules and EU27 eligibility criteria currently proposed would effectively put UK manufacturers at a systemic competitive disadvantage in the EU market, a situation which may also be in breach of the EU-UK Trade Cooperation Agreement – the Brexit deal.
‘The UK government and European counterparts must work together urgently to resolve the situation, extending full, trusted partner status to the UK automotive sector.
‘This is not just to ensure choice for British and European consumers – especially in zero emission vehicles – but to deliver the economic growth and security everyone craves.’
