The trade association said the move to accommodate motor vehicle distribution under the general regime on the vertical restraints that govern other markets was a welcome move.

It added that the current legislation contained “complex and unattractive options” that were not used by businesses.

“The motor industry has come a long way since Block Exemption was first adopted and we welcome the Commission's desire to now simplify the regulation,” said SMMT chief executive, Paul Everitt.

“We look forward to engaging with government and other stakeholders in order to evaluate the report findings, with the aim of maintaining a healthy balance of the many and varied interests of the industry.”