Published by Global Banking & Finance Review®
Posted on April 15, 2026
2 min readLast updated: April 15, 2026
Add as preferred source on GoogleUK carmakers, led by the SMMT, are urging urgent clarity on whether the UK will qualify as ‘Made in EU’ under the EU’s new Industrial Accelerator Act (IAA), amid fears the ambiguity could delay crucial investments and weaken competitiveness versus low-cost Chinese EVs.
By Julia Payne
BRUSSELS, April 16 (Reuters) - The UK's automotive industry group SMMT said on Thursday carmakers need clarity now on whether Britain will count as 'Made in EU' in the European Commission's Industrial Accelerator Act (IAA) policy as the ambiguity risks delaying investments.
The trade uncertainty comes at a time when both Britain and the EU face stiff competition from cheap Chinese electric vehicles.
"The objective was to bolster the competitiveness of European industry vis-a-vis the increasing challenge coming from further afield, low-cost countries. We are not a low-cost country. The intention of this regulation was not to hit the EU-UK trade," SMMT chief executive Michael Hawes told reporters.
The IAA sets low-carbon and 'Made in EU' requirements for public procurement of, or subsidies for, making aluminium, cement, steel, renewable energy and green tech.
Under the proposal, countries with which the EU has trade agreements would be included as 'Made in EU' with any exclusions to be published once the IAA is adopted, which could take at least a year.
However, Hawes said the car industry needs a political statement on Britain sooner - ideally ahead of an EU-UK summit due to take place in June or July. An IAA annex specific to automakers would require vehicles to be assembled in the EU, which could exclude British automakers.
SMMT said the annual value of EU-Britain automotive trade was about 80 billion euros ($94.34 billion) and the two sides remain each other's biggest passenger car markets. Britain is also the EU's biggest buyer of auto components, SMMT said, citing UN data said.
"So for a couple of years unless there is a clear indication from the outset ... it casts a cloud over the UK automotive industry. It's harder to put UK investment on a boardroom agenda if you can't cost the future. We're trying to get a clear political statement now," Hawes said.
($1 = 0.8480 euros)
(Reporting by Julia Payne; Editing by Aurora Ellis)
Uncertainty over whether Britain will count as 'Made in EU' under the IAA may delay investment decisions and impact automotive trade.
The IAA is an EU policy setting 'Made in EU' and low-carbon requirements for public procurement and subsidies for key industries.
The annual value of EU-Britain automotive trade is about 80 billion euros ($94.34 billion).
Any exclusions to the rule will be published after the IAA is adopted, which could take at least a year.
A lack of clarity makes it harder to prioritize UK investment, as future costs and eligibility aren't clear.
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