By Nick Carey LONDON, March 12 (Reuters) - The European Commission's 'Made in EU' proposal setting local content requirements for electric vehicles poses a "clear and present danger" to Britain's car
EU Local Content Proposal Threatens UK Auto Industry and Fleet Sales Access
Impact of EU 'Made in EU' Proposal on UK Automotive Sector
By Nick Carey
EU Local Content Requirements and Fleet Sales
LONDON, March 12 (Reuters) - The European Commission's 'Made in EU' proposal setting local content requirements for electric vehicles poses a "clear and present danger" to Britain's car industry as it would cut off access to crucial fleet sales in the EU, the head of the UK's car lobby said on Thursday.
The Commission's proposal as it is currently written would exclude British-made cars from corporate fleets, which make up more than 60% of the European Union's new car sales, Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT) said.
Significance of EU Market for UK Car Exports
Around 60% of Britain's car production is exported to the EU, which means that "manufacturers' relationship with Europe is critical", Hawes told reporters.
Concerns Over Drafting and Clarity of the Proposal
Hawes said the Commission's proposal was "very poorly drafted" and the SMMT was "making every endeavor to get clarity" as to whether the EU really intends to shut British-made cars out of Europe's corporate fleet market.
UK Government's Zero Emission Vehicle (ZEV) Mandate
The SMMT also called on Thursday for a review of the British government's 'zero emission vehicle' (ZEV) mandate that requires automakers to hit EV sales targets or face fines.
EV Sales Targets and Future Bans
EVs have to make up 33% of automakers' new car sales in 2026 and that rises to 80% in 2030. The British government's mandate will ban fossil-fuel cars as of 2035 while the EU has backed off from a similar plan.
Challenges in EV Adoption
A lack of affordable models has been a significant hurdle to more rapid EV adoption and Hawes said automakers have already spent up to 10 billion pounds ($13 billion) on discounts to sell electric cars.
Industry Perspectives on ZEV Mandate
"If you do the maths, it's just unsustainable," said Nicole Melillo Shaw, UK managing director for Volvo Car.
But Fiona Howarth, founder of Octopus Electric Vehicles, which leases EVs to British consumers and businesses, said "ZEV mandate provides the certainty that brings more choice and better value to drivers".
"Weakening this policy now would be the wrong approach," she said.
($1 = 0.7469 pounds)
(Reporting By Nick Carey; Editing by Emelia Sithole-Matarise)
