The Society of Motor Manufacturers and Traders (SMMT) has urged the European Union to revise its proposed Industrial Accelerator Act (IAA), warning that excluding the UK from the “Made in Europe” framework could undermine a highly integrated automotive partnership.
€80 billion trade relationship at stake
The EU-UK automotive relationship is valued at approximately €80 billion annually, reflecting deep supply chain integration 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, alongside €9.1 billion in automotive components.
Risk of competitive disadvantage
According to the SMMT, excluding UK-built vehicles, parts, and batteries from IAA-linked incentives, particularly those tied to fleet decarbonization, would put UK manufacturers at a competitive disadvantage.
This could reduce production volumes, weaken EU supply chains, and increase costs for consumers.
Decarbonization momentum at risk
Industry representatives warn that limiting UK participation in incentive schemes could disrupt investment signals at a critical stage in the transition to low-emission mobility. Such a move risks slowing progress toward climate targets and weakening the broader decarbonization agenda.
SMMT Chief Executive Mike Hawes emphasized that, amid rising geopolitical uncertainty and intensifying global competition, closer EU-UK cooperation is essential. He argued that both sides should focus on strengthening supply chain resilience and maintaining global competitiveness, rather than introducing new trade barriers.