Plans from the European Commission to prioritise EU-made products in public funding and procurement could have major implications for the UK automotive sector – and potentially for fleets that rely on vehicles built in Britain.
The proposed Industrial Accelerator Act would require electric vehicles and other products to demonstrate a high share of EU value creation to qualify for subsidies or public procurement programmes within EU member states.
Industry groups warn that, as currently drafted, the rules could put UK-built vehicles at a disadvantage in the European market. Society of Motor Manufacturers and Traders said the proposals risk discriminating against UK-made vehicles and components in a trading relationship worth almost £70bn a year.
The policy is particularly significant for plants such as Nissan’s Sunderland factory, one of the UK’s largest car production sites, which builds models including the Nissan Qashqai and the next-generation Nissan Leaf.
For fleets, the stakes are largely about vehicle supply and cost. If UK-built models face barriers to EU subsidies or procurement schemes, manufacturers could face pressure on production volumes or pricing in European markets.
That could ultimately affect model availability, residual values and manufacturing investment, particularly for EVs produced in the UK.
Negotiations are ongoing, with both the UK government and industry pushing for the UK to be recognised as a trusted partner within the EU supply chain.