By Muvija M and Nick Carey <\/p>\n
LONDON, June 30 (Reuters) – British electric vehicle makers will have to pay \u00a31.4 billion ($1.85 billion) in tariffs if there is \u200cno solution on local content requirements with the European Union, the country’s \u200cmain car lobby group estimated on Tuesday. <\/p>\n
The post-Brexit rules on the sourcing of parts, which was delayed once \u200bin 2023 and is now due to take effect from January, will trigger a 10% tariff on 70% of battery electric and plug-in hybrid models traded with the EU, the Society of Motor Manufacturers and Traders (SMMT) said. <\/p>\n
The British-EU battery electric and plug-in hybrid vehicle \u200ctrade – estimated at \u00a316.4 billion – faces \u2060a risk from such an enforcement, which the SMMT says would make “many of these crucial models less competitive and less affordable”. <\/p>\n
The warning \u2060also comes amid political uncertainty after Prime Minister Keir Starmer’s resignation, as it remains to be seen whether his likely successor, former Greater Manchester mayor Andy Burnham, will maintain his \u200bapproach to \u200bEU relations. <\/p>\n
“With global competition (more) fierce than ever, \u200bthe last thing we need is \u200cadditional costs of that trade, so we need a joint solution,” SMMT CEO Mike Hawes told reporters at a briefing in London. <\/p>\n
The government did not comment directly on the SMMT’s calculation but said they were committed to supporting British carmakers. <\/p>\n
Britain and the EU are each other’s largest export market for EVs, with targets in both Brussels and \u200cLondon to phase out combustion engine models in \u200bthe 2030s. The EU has already backed away \u200bfrom an effective 2035 ban on \u200bdiesel and petrol cars as EV sales have not risen as \u200cquickly as originally expected. <\/p>\n
The previous extension \u200bhad come after some \u200bcarmakers threatened to close their plants in Britain. <\/p>\n
Further uncertainty has been created by the European Commission’s ‘Made in EU’ proposal, which Hawes said would “effectively shut out” UK-assembled \u200bvehicles from most European markets. <\/p>\n
“It’s \u200cnot just a UK problem … it will damage the UK and will \u200balso damage Europe itself,” he added. <\/p>\n
(Reporting by Muvija M and Nick Carey; \u200bEditing by Thomas Derpinghaus and Raju Gopalakrishnan) <\/p>\n","protected":false},"excerpt":{"rendered":"By Muvija M and Nick Carey LONDON, June 30 (Reuters) – British electric vehicle makers will have to…\n","protected":false},"author":2,"featured_media":1060449,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5226],"tags":[291120,802,748,2000,299,5187,1699,4884,291119,187948,77438,2479,16,15],"class_list":["post-1060448","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brexit","tag-battery-electric","tag-brexit","tag-britain","tag-eu","tag-europe","tag-european","tag-european-union","tag-great-britain","tag-local-content-requirements","tag-mike-hawes","tag-prime-minister-keir-starmer","tag-smmt","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116841236902049291","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1060448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1060448"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1060448\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1060449"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1060448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1060448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1060448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}