Electric vehicle manufacturers face a £3.7bn bill over the next three years unless the EU drops the introduction of tariffs on trade between the bloc and Britain, industry bosses have said.
Factories may reduce production by up to 480,000 vehicles during that time unless the so-called “rules of origin” regulations are abandoned, according to the European Automobile Manufacturers’ Association (ACEA).
The rules, which are due to come into force in January, were designed to force car companies to build vehicles using parts sourced from within the UK or the EU – or face a 10pc tariff.
However, manufacturers rely on components from markets like China and ACEA has warned that complying with the EU rules will be “practically impossible”.
ACEA president and Renault Group chief executive Luca de Meo said: “Driving up consumer prices of European electric vehicles, at the very time when we need to fight for market share in the face of fierce international competition, is not the right move – neither from a business nor an environmental perspective.
“We will effectively be handing a chunk of the market to global manufacturers.
“Europe should be supporting its industry in the net-zero transition as other regions do – not hindering it.”
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What happened overnight
Shares in Asia were mostly lower, with Tokyo the only major regional market to advance, after Wall Street suffered more losses with its worst week in six months.
Worries over China’s property sector, a US government shutdown and the continued strike by American autoworkers were weighing on investor sentiment.
Troubled property developer China Evergrande sank 18.2pc after announcing it was unable to raise further debt, a predicament that might imperil plans for restructuring its more than $300 billion in debt.
Hong Kong’s Hang Seng lost 1.5pc to 17,794.49, while the Shanghai Composite index declined 0.5pc to 3,116.17.
Tokyo stocks ended higher in bargain-hunting following sharp falls last week. The benchmark Nikkei 225 index added 0.9pc, or 276.21 points, to 32,678.62, while the broader Topix index rose 0.4pc, or 9.23 points, to 2,385.50.
In Seoul, the Kospi lost 0.5pc to 2,496.65, while Australia’s S&P/ASX 200 shed 0.1pc to 7,064.30.
