UK-EU summit must safeguard auto trade and investment, warns SMMT

The forthcoming UK-EU summit on 20 November represents a crucial opportunity to protect automotive trade, manufacturing investment and jobs on both sides of the Channel, according to the Society of Motor Manufacturers and Traders (SMMT).

The summit, which will take place in Brussels, will bring together UK Prime Minister Andy Burnham, European Council President António Costa and European Commission President Ursula von der Leyen to discuss the future relationship between Britain and the European Union.

Originally scheduled for July, the meeting is expected to focus on strengthening economic cooperation, alongside wider discussions on trade, security and regulatory alignment.

For the automotive industry, the summit comes at a particularly important time, with manufacturers facing uncertainty over the EU’s proposed ‘Made in Europe’ industrial framework and the potential introduction of tariffs on cross-border trade in electrified vehicles.

“Despite Brexit, the UK and EU remain each other’s largest automotive trading partners, underpinned by deeply integrated manufacturing operations and supply chains that create value on both sides.”

UK automotive supports €24bn of EU economic activity

Recent Oxford Economics analysis commissioned by the SMMT found that UK automotive production supports €24bn of economic activity and approximately 250,000 jobs across the European Union.

The findings highlight the extent of the industry’s interconnected supply chains and the potential economic consequences of introducing additional trade barriers.

Hawes is calling for the UK to receive preferential partner status under the EU’s proposed ‘Made in Europe’ framework, which could otherwise disadvantage British manufacturers within European industrial supply chains.

He also urged both sides to act quickly to prevent the introduction of rules of origin tariffs on electrified vehicles from 1 January 2027.

“Preferential partner status for the UK under the EU’s proposed ‘Made in Europe’ framework is therefore vital, while both sides must also work quickly to avert the introduction of rules of origin tariffs on cross-Channel trade in electrified vehicles on 1 January,” Hawes said.

The summit also offers an opportunity to advance negotiations on other areas of economic cooperation, including linking the UK’s and EU’s emissions trading systems.

Commercial vehicle transition adds to pressure

The SMMT stressed that maintaining open trade is equally important for the commercial vehicle sector, where manufacturers and operators are investing in cleaner technologies despite ongoing market challenges.

Latest SMMT figures show that UK heavy goods vehicle registrations increased by 7.2% in the third quarter of 2026, while bus registrations rose by 3.1%.

However, the HGV market remains fragile following two years of declining demand, with zero-emission trucks accounting for approximately one in every 90 new registrations.

The SMMT has called for a technology-neutral approach to HGV emissions regulation, alongside continued government support for charging infrastructure and vehicle investment.

The bus market has made stronger progress, with zero-emission vehicles now accounting for almost a third of new registrations, supported by government funding programmes.

The trade body argues that maintaining this momentum will require further support for smaller and rural operators.

As the UK and EU prepare for November’s summit, the SMMT is urging policymakers to recognise the importance of their shared automotive manufacturing base and avoid regulatory or trade measures that could undermine investment.

With the transition to electric vehicles requiring substantial investment in manufacturing, supply chains and infrastructure, the industry is seeking greater certainty over the future trading relationship to support long-term competitiveness and growth.