European EVs to cost up to £3,600 more in UK/EU markets under post-Brexit rules

Car manufacturers on both sides of the Channel are urging the EU and UK to strike an immediate agreement to delay damaging Brexit trade tariffs on electric vehicles until 2027.

The plea, echoed by the EU auto sector, is to delay the implementation of tougher new Rules of Origin (ROO) requirements on batteries which could render EU and UK made electrified vehicles uncompetitive in each other’s markets.

It said: “As the clock ticks down to the 1 January 2024 ROO introduction, new calculations lay bare the impact the new rules, set under the EU-UK Brexit deal, would have on vehicle affordability and competitiveness. Electrified vehicles that do not meet the new thresholds will be subject to a 10% tariff when traded across the Channel, resulting in a combined cost of £4.3 billion.1 For the consumer, this could mean an average price hike of £3,400 on EU-manufactured battery electric vehicles (BEVs) bought by British buyers, and a £3,600 rise on UK-made BEVs sold in Europe.”