Thousands of car jobs at risk as new post-Brexit rules coming in January cause ‘serious threat’

Industry representatives warned Members of the Legislative Assembly that Northern Ireland faces a serious threat to its dealerships, supply chains and wider automotive economy unless urgent action is taken.

The concerns have intensified following the Department for Transport‘s publication of its updated GB Type Approval consultation in May.

The consultation sets out significant changes to how vehicles will be approved for sale in Great Britain.

While these changes are intended to modernise the UK’s regulatory system, they also highlight how far Northern Ireland is drifting away from it.

Because NI must continue following EU rules under the Windsor Framework, it risks being locked into a different system from the one car manufacturers are increasingly choosing.

From January 2026, every new vehicle sold in Northern Ireland must have EU type approval.

Cars that have only been approved for the British market using the GB type approval route will no longer be permitted for registration in NI.

This requirement does not apply to second-hand cars, but it does apply to all new ones.

But experts have warned that many manufacturers now choose GB-only approval for a significant part of their model range.

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The NFDA told assembly members that Northern Ireland is too small a market for companies to justify the extra cost of obtaining EU approval as well.

Because of this commercial decision, a number of familiar brands could be at risk of having their new models disappear from Northern Ireland showrooms.

According to evidence presented to Stormont, Vauxhall, Renault, Citroen, Peugeot, and Jaguar Land Rover are among the manufacturers following the GB-only route.

The NFDA said this will leave Northern Ireland drivers facing reduced choice, higher prices and long-term damage to the sector.

Dealers have already started to feel the impact. They told the committee that some new models are becoming harder to source, and that the limited supply of EU-approved vehicles is pushing up customer costs.

They warned that this problem will accelerate rapidly in 2026, once the new rules become mandatory.

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In May, the Department for Transport’s new consultation reinforced the direction Great Britain is taking.

It proposed updates to the GB approval system, including acceptance of 4G and 5G-based eCall emergency systems and updates to lighting and security rules.

These changes are designed to keep Britain aligned with modern international standards and to make the GB approval system more attractive to manufacturers.

Crucially, none of these changes automatically applies to Northern Ireland.

As Great Britain’s rules evolve, Northern Ireland will continue following EU legislation unless a political agreement is reached.

The NFDA warned that this regulatory split will encourage even more manufacturers to design separate “GB-only” vehicles that NI customers cannot buy.

NFDA Northern Ireland spokesperson Alastair Peoples described the situation as a “generational challenge” and said manufacturers are clearly prioritising their largest market, which is Great Britain.

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MPs from several parties have urged ministers to allow Northern Ireland to accept GB type approval, at least temporarily, to prevent severe disruption to the 2026 new-car market.

Northern Ireland Secretary Hilary Benn has promised to revisit the matter once the Department for Transport issues further guidance.

Stormont‘s Economy Committee has also asked the Secretary of State to examine the issue urgently, while the Northern Ireland Affairs Committee has warned Westminster that immediate action is needed.

Industry leaders say time is running out. Without a solution, they believe Northern Ireland faces permanent damage to its automotive sector, a shrinking market, and the loss of thousands of jobs.