Motor Vehicles: Manufacturing Industries
The question
To ask the Secretary of State for Business and Trade, what discussions his Department has had with the European Commission on ensuring that UK-built vehicles and components are treated as equivalent to EU-origin content under future “Made in Europe” automotive policies.
Answered by Chris McDonald
My department is looking carefully at the proposed measures in the EU’s Industrial Accelerator Act. Where these measures, as currently drafted, could disadvantage the UK’s automotive sector, or UK-EU integrated automotive supply chains, the Secretary of State, Minister Bryant, and I have and are continuing to engage positively with EU member states, Commission counterparts, and MEPs.
We continue to engage industry to assess potential impacts to business.
This Government is supporting investment into the transformation of our automotive industry through DRIVE35, a £4 billion programme to 2035. This is in addition to wider interventions to improve competitiveness and attract investment. From 2027, a new British Industrial Competitiveness Scheme will reduce electricity costs by c.£35-40/MWh and support thousands of businesses, including those in the automotive sector.
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