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We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. For more information see our Privacy Policy. Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. However, that proportion is due to rise on 1 January to 45%, and in 2027 it will rise to 55%.Īs most electric vehicle batteries are still imported from China, South Korea and Japan, and batteries make up a large part of the cost of building a car, vehicles made in both the UK and EU are likely to fall foul of the rules. Under the rules all cars exported from the UK to EU or vice versa must source 40% of their parts by value from within countries within the trade deal. The UK represents an important and profitable market for Germany’s carmakers – albeit a small part of their global sales.Ĭarmakers have had two years to prepare for the deadline, but the flurry of lobbying was triggered by Stellantis, the owner of brands including Vauxhall, Fiat and Peugeot, telling a UK parliamentary committee that it needed more time to source batteries from within Europe.įord, Jaguar Land Rover and the European Automobile Manufacturers’ Association on Wednesday joined Stellantis in publicly calling for the deadline to be extended. The VDA’s members include some of the world’s most powerful carmakers such as BMW, Mercedes-Benz, Porsche and Volkswagen. Tariffs would slow down the shift to electric cars, it argued. The VDA said “it is now urgent to adjust” the deal because tariffs would represent “a significant competitive disadvantage for the European car industry in relation to its Asian competitors in the so important UK market”.
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