In brief
The Society of Motor Manufacturers and Traders has warned that European Union trade measures could impede the projected recovery of British vehicle production. The Xinhua report highlights potential exclusions of UK-built cars under the EU’s “Made in EU” proposals and tariff costs from stricter rules of origin. The SMMT calls the upcoming EU‑UK Summit crucial to negotiate solutions that protect the £80‑billion trade relationship.
SMMT warned in a Xinhua‑reported statement on Thursday that European Union trade measures could derail the planned recovery of British vehicle production. The Society said the EU’s “Made in EU” proposals could effectively exclude cars built in the United Kingdom from the EU market, its largest export destination.
The outlook, released by the SMMT, projects a decline in UK vehicle production for 2026, followed by a rise to 752,000 units in 2027 as new electric‑vehicle models enter the market. The organization identified three major threats to the industry, two of which stem from Britain’s trading relationship with the EU. The EU Assembly’s proposals could eliminate UK‑built cars from its supply chain, while tougher rules of origin set to take effect in 2027 under the Trade Cooperation Agreement could trigger tariffs of roughly 1.4 billion pounds each year on two‑way EV trade.
Exports accounted for more than three‑quarters of British vehicle production in September, with 57.5 per cent of those goods heading to the EU. The SMMT stressed that both the exclusion of its cars and the tariff levy would damage the automotive industry on both sides of the channel. It called the forthcoming EU‑UK Summit a vital opportunity to agree practical solutions and safeguard the 80‑billion‑euro, about 90‑billion‑dollar, trade relationship.
The Society also warned that what it described as unrealistic domestic electric‑vehicle sales targets were putting manufacturers under acute pressure, eroding profitability, diverting resources and undermining the UK’s attractiveness as a place to invest. It urged industry leaders and policymakers to address these concerns before the summit, where the issue is expected to be a key part of the agenda.
