London — The British automotive sector has called on the European Commission to urgently clarify its new “Made in EU” industrial strategy, warning that uncertainty over the rules is slowing investment and could exclude UK manufacturers from key supply chains.
The Society of Motor Manufacturers and Traders (SMMT) urged Brussels to issue a political statement on the UK’s status before the upcoming EU–UK summit this summer. Under the draft EU Industrial Acceleration Act, only vehicles assembled within the European Union would qualify as “Made in EU,” a definition that could effectively sideline British automakers.
“The goal of this law was to strengthen Europe’s competitiveness against low‑cost producers abroad. The intention was never to harm EU–UK trade,” said SMMT Chief Executive Michael Hawes.
The legislation sets criteria for public procurement and subsidies in sectors such as aluminium, steel, cement, renewable energy, and green technologies. Countries with trade agreements with the EU will be included once the law is adopted — a process expected to take at least a year.
Industry leaders warn that the lack of clarity is already delaying investment decisions, just as Chinese electric‑vehicle manufacturers expand aggressively across Europe with cheaper models. According to SMMT, the annual value of automotive trade between the EU and the UK stands at roughly €80 billion, making each side the other’s most important market for cars.