* Proposal would exclude UK-made cars from EU corporate

fleets, SMMT's Hawes says

* About 60% of UK car production is destined for EU

* Hawes urges UK government to review 'zero emission

vehicle' mandate

By Nick Carey

LONDON, March 12 (Reuters) - The European Commission's

'Made in EU' proposal setting local content requirements for

electric vehicles poses a "clear and present danger" to

Britain's car industry as it would cut off access to crucial

fleet sales in the EU, the head of the UK's car lobby said on

Thursday.

The Commission's proposal as it is currently written would

exclude British-made cars from corporate fleets, which make up

more than 60% of the European Union's new car sales, Mike Hawes,

CEO of the Society of Motor Manufacturers and ​Traders (SMMT)

said.

Around 60% of Britain's car production is exported to the EU,

which means that "manufacturers' relationship with Europe is

critical", Hawes told reporters.

Hawes said the Commission's proposal was "very poorly

drafted" and the SMMT was "making every endeavor to get clarity"

as to whether the EU really intends to shut British-made cars

out of Europe's corporate fleet market.

The SMMT also called on Thursday for a review of the British

government's 'zero emission vehicle' (ZEV) mandate that requires

automakers to hit EV sales targets or face fines.

EVs have to make up 33% of automakers' new car sales in 2026

and that rises to 80% in 2030. The British government's mandate

will ban fossil-fuel cars as of 2035 while the EU has backed off

from a similar plan.

A lack of affordable models has been a significant hurdle to

more rapid EV adoption and Hawes said automakers have already

spent up to 10 billion pounds ($13 billion) on discounts to sell

electric cars.

"If you do the maths, it's just unsustainable," said Nicole

Melillo Shaw, UK managing director for Volvo Car.

But Fiona Howarth, founder of Octopus Electric Vehicles,

which leases EVs to British consumers and businesses, said "ZEV

mandate provides the certainty that brings more choice and

better value to drivers".

"Weakening this policy now would be the wrong approach," she

said.

($1 = 0.7469 pounds)

(Reporting By Nick Carey; Editing by Emelia Sithole-Matarise)