EU car industry Brexit EV tariff delay

What happened: The EU and UK car industries are pressing the European Commission to delay Brexit electric vehicle (EV) tariffs beyond 2027. The European Automobile Manufacturers Association (Acea) has also urged the EU to include the UK in new "made in Europe" rules, fearing British manufacturers could be shut out of their biggest export market. Toyota's Europe CEO has advocated for extending the EU's "Made in EU" strategy to non-EU nations like the UK.

Market impact: The auto industry is grappling with potential disruptions due to Brexit. The delay in EV tariffs could benefit both EU and UK manufacturers, preventing immediate cost increases. However, the exclusion of UK manufacturers from "made in Europe" rules could lead to reduced exports and market share for UK-based companies like Jaguar Land Rover and Nissan.

What to watch next: The European Commission's response to the industry's requests by Q2 2023, and the UK government's potential retaliation if the EU does not include the UK in the "made in Europe" rules. Additionally, the UK's EV production capacity expansion plans by major manufacturers such as Nissan and Toyota will indicate the industry's long-term strategy in the face of potential regulatory challenges.