London, 13 March 2026 – The Consumer Choice Center (CCC) today warned that the European Union’s proposed Industrial Accelerator Act (IAA) and associated “Made in Europe” provisions risk harming consumers by restricting competition, limiting vehicle choice, and driving up prices across the automotive market.
Under the current draft, UK-made vehicles could be excluded from key incentive programs and market segments within the European Union, despite the deep integration of UK and EU automotive supply chains. Industry groups have warned the policy could disrupt a UK–EU automotive trade relationship worth nearly £70 billion annually.
Mike Salem, UK Country Associate at the Consumer Choice Center reacted:
“The best and fairest way to protect both consumers and industry is through open and competitive free markets. Extreme protectionism has always failed” He added: “Policies that favour production based on geography rather than performance or price risk turning industrial policy into protectionism.”
The CCC cautioned that limiting market access for trusted trading partners such as the United Kingdom could lead to higher costs for consumers and fewer options when purchasing new vehicles.
“Consumers benefit when companies compete freely across borders to deliver better products at lower prices,” Salem added. “When governments intervene to pick winners based on where goods are produced rather than how good they are, it is consumers who ultimately pay the price.”
The CCC warned that restrictions embedded in “Made in Europe” policies could also slow the transition to cleaner vehicles if incentives exclude affordable and competitive models produced outside the EU.
“The UK and EU automotive sectors are deeply interconnected,” Salem concluded. “Policies that disrupt this partnership will not strengthen the industry in the long run. Instead, policymakers should focus on maintaining open markets that reward innovation, efficiency, and value for consumers.”
The CCC is urging policymakers in both London and Brussels to ensure that future industrial policy supports competition and consumer welfare by keeping markets open and avoiding discriminatory barriers between close trading partners.
