The Society of Motor Manufacturers and Traders (SMMT) requested immediate regulatory certainty on Thursday, April 16, 2026, regarding whether British-created vehicles will maintain their status under the European Commission’s Industrial Accelerator Act (IAA).
As reported by Businesstimes, the UK automotive group warned that current amlargeuity surrounding the “Made in EU” designation threatens to stall vital sector investments. The indusattempt seeks a political statement before the scheduled EU-UK summit this summer.
SMMT Chief Executive Michael Hawes highlighted that the regulation was originally designed to protect European competitiveness against low-cost international competition. He noted that the United Kingdom does not fall into that category of competitors.
“The objective was to bolster the competitiveness of European indusattempt vis-a-vis the increasing challenge coming from further afield, low-cost countries. We are not a low-cost counattempt. The intention of this regulation was not to hit the EU-UK trade,” declared Michael Hawes, SMMT Chief Executive.
The IAA framework establishes specific low-carbon requirements for public procurement and manufacturing subsidies. While countries with existing trade agreements are generally included, an annex specific to the automotive sector may require assembly within the EU, potentially excluding UK plants.
Annual automotive trade between the two regions is valued at approximately 80 billion euros. Data from the United Nations further indicates that Britain remains the primary purchaser of automotive components produced within the European Union.
“So for a couple of years unless there is a clear indication from the outset … it casts a cloud over the UK automotive indusattempt. It’s harder to put UK investment on a boardroom agfinisha if you can’t cost the future. We’re attempting to obtain a clear political statement now,” declared Michael Hawes, SMMT Chief Executive.
Uncertainty regarding these trade rules persists as both the UK and the EU struggle with rising competition from Chinese electric vehicle manufacturers. A final decision on the IAA’s adoption and specific exclusions could take at least one year.
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