European automakers Stellantis and Renault have advocated for the inclusion of the British car industry in the European Union's proposed "Made in Europe" legislation, which aims to safeguard EU manufacturers and ensure that subsidies support European production. The two companies' leaders emphasized that the United Kingdom should be treated as part of Europe under the new rules, despite its departure from the bloc.
Emanuele Cappellano, head of Stellantis’s European brands such as Fiat, Citroën, Opel, and Vauxhall, along with François Provost, Renault’s chief executive, expressed concern about the potential exclusion of the UK from the proposed framework. The legislation is intended to require vehicles to contain a specified proportion of European parts and materials to qualify for electric vehicle (EV) subsidies. This measure is part of the EU’s broader strategy to protect its automotive industry amid growing competition and economic challenges.
The European car sector is facing significant pressure as demand remains below pre-pandemic levels, even as manufacturers invest heavily in transitioning toward electric mobility. The shift has provided an opening for Chinese automakers, whose market share in Europe has increased, particularly in the EV segment. In response, the European Commission recently announced a cap on hybrid EV imports from China, limiting them to 350,000 vehicles annually. Officials expect this quota to reduce China’s existing 6 percent market share by about half.
The proposed "Made in Europe" rules represent part of the EU’s effort to counterbalance China’s expanding influence in key manufacturing industries. However, negotiations continue over the precise terms of the legislation, including the geographic scope of what qualifies as "European." A strict interpretation confined to EU member states would exclude the UK, raising concerns among British manufacturers and their European partners.
Meanwhile, the UK government has not imposed tariffs on Chinese imports to date but acknowledged earlier this month that it is reviewing its trade policies in light of increased competition. Industry leaders from Stellantis and Renault have urged the UK government to consider measures that may include restricting Chinese vehicle imports, aligning with ongoing efforts in Europe to support domestic production and maintain industrial competitiveness.
As discussions unfold, the fate of the UK's participation in the new EU framework and its approach to Chinese imports will play a pivotal role in shaping the future of the European automotive landscape.