Automakers will need documentation to prove vehicles meet new UK and EU content thresholds set at 55 per cent for conventional models, with a one-year grace period. — Reuters pic
On December 24, London and Brussels reached an agreement that secures zero-tariff and quota-free trade for the automotive sector, subject to vehicles containing a minimum level of parts sourced from the region.But trade industry body the Society of Motor Manufacturers and Traders said additional bureaucracy and the need to approve vehicles separately in both the EU and Britain, among other costs, would add up.
“The paperwork...you used to do it on a minority of vehicles. Now you’re doing it on just about all your vehicles, apart for those that are going to the UK market.” The initial local content threshold is lower for electric vehicles, set at 40 per cent, but due to rise, reflecting the high amount of battery content that comes in from Asia.