LONDON/BRUSSELS, April 16 (Xinhua) -- Britain's auto industry body on Thursday urged the European Union (EU) to revise its proposed industrial policy, warning that excluding Britain from key provisions could disrupt supply chains and undermine competitiveness across the region.
The Society of Motor Manufacturers and Traders (SMMT) called on the EU to amend its planned Industrial Accelerator Act (IAA) to ensure that Britain-built vehicles, components and batteries are treated equally to those produced within the bloc under its "Made in Europe" framework.
The appeal came as SMMT representatives met EU officials in Brussels, highlighting the importance of the long-standing EU-Britain automotive partnership, valued at around 80 billion euros (about 94 billion U.S. dollars) annually.
According to the industry group, Britain remains the EU's largest export market for passenger cars, while the EU is also Britain's biggest trading partner in the sector. EU-based manufacturers export vehicles worth nearly 39.7 billion euros (about 46.8 billion dollars) to Britain each year. Meanwhile, component exports to Britain total about 9.1 billion euros (about 10.7 billion dollars) annually, exceeding shipments to other major markets.
SMMT warned that excluding Britain from incentives under the "Made in Europe" policy, particularly those linked to the greening of corporate fleets, which account for around 60 percent of the EU new car market, and CO2 super credits, could place British manufacturers at a significant disadvantage, potentially reducing production volumes and disrupting highly integrated supply chains.
The group also cautioned that such measures could lead to reduced choice and higher prices for consumers, while weakening investment at a critical stage of Europe's transition to electric vehicles.
Other industry experts have suggested that the policy shift reflects a broader change in the EU's industrial strategy.
Julia Poliscanova, senior director for vehicles and e-mobility supply chains at Transport and Environment, said Europe is increasingly prioritizing "strategic autonomy" in key clean technology sectors, with policies aimed at boosting local production and reducing reliance on external suppliers.
New industrial policies, including stricter local content requirements, she added, could slow cross-border cooperation in the short term, even as they aim to strengthen long-term supply chain resilience.
Despite post-Brexit challenges, trade in battery electric vehicles (BEVs) between the two sides has expanded rapidly under the tariff-free conditions of the EU-Britain Trade and Cooperation Agreement. EU-built models currently account for 61.6 percent of BEVs sold in the British market, SMMT data showed.
Mike Hawes, SMMT chief executive, said the proposed policy "threatens to reverse progress" in electrified vehicle trade and could damage jobs, investment and innovation on both sides.
He called for deeper Britain-EU cooperation to strengthen supply chain resilience and support the transition to low-carbon mobility, urging policymakers to use an upcoming bilateral summit as an opportunity to reinforce industrial collaboration. ■
