Manufacturing · Automotive · 9 November 2026
SMMT report urges UK-EU cooperation on automotive competitiveness
A new report published by SMMT warns that Europe's automotive sector faces pressure from global competition and rising costs. The document calls for joint action on rules of origin and a shared battery supply chain roadmap to protect jobs and investment.
SMMT has published a report warning that Europe's automotive competitiveness is under pressure. The document highlights that global competition, rising costs, and battery dependencies are key factors affecting the industry. It calls for closer UK-EU cooperation to address these challenges.
The report notes that the UK and EU are each other's top automotive trading partners. Figures published with the announcement show that the EU takes 60.4% of UK vehicle exports, while 30.0% of EU exports go to the UK. The sector employs 1.37 million people directly in vehicle manufacturing across Europe and Britain. Professor Riccardo Crescenzi, Professor of Economic Geography at LSE and lead academic on the report, said: "This report shows why decisions taken on either side of the Channel affect firms, workers and suppliers on the other, and why a more coordinated approach is in both sides' interests."
The findings indicate that the global automotive industry's focus is shifting towards China. The report argues that deeper cooperation can help secure future investment, jobs, and industrial leadership in the transition to electric vehicles. It specifically calls for joint action on rules of origin, UK inclusion in 'Made in Europe', and a shared battery supply chain roadmap.
Written by StreetOwl from SMMT, a trade body’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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