If this, as you say, is an EU concession and they withdraw it then it simply confirms many opinions of how vindictive they really are.
Under treaties dating back to the middle of the 20th century vehicles travelling internationally have to carry an oval country of origin sticker.
There are various benefits and concessions that apply amongst the nations of the EU. One very small one is EU pattern number plates that, by adding the origin detail to the index plate, remove the need for origin stickers when travelling within the EU.
If we are no longer a member we no longer have that concession.
Our politicians could have negotiated a deal that allowed us to retain that concession. However they're fixated with the concept of UK as an independent sovereign state*. We can book their people and they can book us for non-compliance.
*The idea that France or Italy are not sovereign states is nonsense on stilts but we get the leaders we deserve.
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