UK Automotive and Components Sector

Debate between Lord Leong and Lord Stoneham of Droxford

Wednesday 9th September 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, we are closely monitoring the growing presence of Chinese electric and hybrid vehicles and are engaging directly with UK manufacturers. My loyalty lies with Range Rover: mine is almost five years old now, so I am waiting for the electric version to come on to the market. We have strengthened our trade remedies to respond more swiftly to evidence of harm, and the Trade Remedies Authority can investigate when industry brings forward credible evidence of what these Chinese cars are doing to the sector.

[Lord Stoneham of Droxford (LD)]

My Lords, the best support the Government could give to the car industry is to end the uncertainty in the European car market, which is hindering investment and could decimate our industry in the near future. Should we not be rejoining the single market and the customs union to provide a strong, countervailing force, with Canada, against Trump tariffs and unfair Chinese competition?

[Lord Leong (Lab)]

My Lords, our position is very clear: we are where we are and we are not joining the customs union. The Government will defend the interests of British manufacturers and our deeply integrated UK-EU automotive supply chains. Where the proposed IAA “Made in Europe” risks disadvantaging them, the Secretary of State and Trade Minister have raised our concerns directly with EU member states, their commissioners and MEPs. The proposal is not final, and we continue to work with the industry to assess its impact. Now is the time for like-minded partners to strengthen growth, resilience and economic stability.