Automotive

The UK automotive sector is undergoing a transformational shift towards zero-emission mobility. This is anchored by the world’s most ambitious national-level framework, ending petrol and diesel vehicle sales by 2030. With £2.5 billion in committed capital and R&D funding, a workforce of 133,000 skilled professionals, and £83 billion in annual automotive manufacturing turnover, the sector offers unparalleled opportunities. As Europe's largest electric vehicle (EV) market and home to 6 of the current 11 Formula 1 teams, the UK combines world-class innovation infrastructure and manufacturing capabilities with heritage and expertise.

Opportunity highlights

The UK automotive sector presents diverse, high-value investment opportunities across the complete zero-emission vehicle value chain.

Manufacturing electric vehicles

Establish end-to-end EV manufacturing facilities or refit existing capacity with EV-oriented production systems. Businesses can benefit from a skilled workforce, tariff-free EU exports and 10% USA tariff access. Ford, JLR, Nissan and Rolls-Royce validate proven commercial viability in Europe's largest EV market.

Producing EV batteries

Scale industrial battery production with UK's regional hubs and expanding gigafactory network. Address a 75 GWh (gigawatt-hour) projected UK automotive battery demand by 2035, supported by £452 million Battery Innovation Programme funding to 2030.

Battery supply chain

Develop cathode and anode materials, battery recycling, and logistics infrastructure. Businesses can capture the opportunities of a projected 150,000 tonnes of annual recycling by 2035, and projected demand of 163,000 tonnes of domestic cathode active materials by 2030.

Large-scale castings (gigacasting)

Design casting technologies for entire vehicle underbodies and next-generation modular presses. The UK aluminium die casting market is predicted to reach £1.2 billion by 2030, supported by DRIVE35 funding.

Power electronics, motors and drives

Supply semiconductors, inverters and innovative drive-train designs (in-wheel, dual-rotor motors). Businesses can tap into targeted government support for semiconductors through the UK’s Industrial Strategy, including a skills development programme and the establishment of a new UK Semiconductor Centre to support innovation, ecosystem building and business services.

Connected and automated mobility

Develop AI systems, environmental perception, 5G/6G V2X communications and cyber security solutions. Access world-class testing facilities guided by the world's most detailed regulatory framework. The UK CAM (connected and automated mobility) market is projected to be £62 billion by 2035, with £150 million CAM Pathfinder funding available.

Commercial maturity

The UK automotive sector demonstrates strong commercial readiness. With £83 billion in annual turnover, the sector possesses proven production and engineering capability. Recent investments by major global OEMs (original equipment manufacturers) and suppliers confirm market confidence. There’s government backing through the £2.5 billion automotive capital and R&D funding commitment. This, along with the Advanced Manufacturing Sector Plan targeting £39 billion in annual business investment by 2035, provides investor certainty. The sector's export strength, with 80% of manufactured cars exported to 140 markets, demonstrates global competitiveness and resilient demand for UK-made vehicles and components.

Key UK assets

The UK's automotive ecosystem spans multiple regions, each offering distinct competitive advantages.

West Midlands

The heartland of UK automotive, home to major OEMs and Tier 1 suppliers with established manufacturing capacity and cutting-edge R&D facilities. Warwickshire's automotive cluster provides end-to-end manufacturing and supply chain integration opportunities.

East Midlands

A vehicle manufacturing and propulsion cluster centred on Toyota’s UK operations, with strengths in hybrid and next-generation electrified platforms. Investors can tap into a mature components base and aerospace-automotive technology transfer, supported by new investment zone incentives.

North West

An emerging EV battery and power electronics hub with gigafactory projects and advanced materials research. Lower operating costs and available development land attract large-scale battery production investment.

North East England

A leading hub for EV and battery production, anchored by Nissan's Sunderland plant and AESC gigafactories. Home to road and off-highway vehicle manufacturing with companies including Komatsu, Caterpillar, Cummins and Liebherr.

Motorsport Valley

Located primarily in Oxfordshire and the English West Midlands, this is home to 6 of 11 the 2026 season Formula 1 teams including Mercedes, Red Bull Racing, Aston Martin, McLaren, Alpine and Williams. A global centre for motorsport development, advanced materials, aerodynamic design and performance engineering, with technologies directly transferrable to EV and autonomous vehicle applications

South West

A fast-growing battery and systems manufacturing hub, anchored by Agratas’ planned gigafactory in Somerset and a strong base of automotive components and systems suppliers. Investors can locate next to large scale cell production operations and plug into a developing regional ecosystem for battery modules, packs and recycling serving UK and export demand.​

Wales

An emerging centre for EV powertrains, components and advanced materials that builds on deep manufacturing heritage. Attractive cost bases and available industrial sites support suppliers looking to serve UK OEMs and plug into the growing battery and drivetrain supply chain.

Northern Ireland

A specialist base for automotive parts and bus manufacturing, with companies such as Ryobi, Linamar and Wrightbus active in lightweight components and zero-emission vehicles. Its strategic position offers investors efficient access to UK, Irish and wider European markets for both components and finished vehicles.

R&D capability

Capitalise on world-leading automotive R&D capability backed by substantial government and private investment. With 32 dedicated automotive R&D and design centres, the sector is at the edge of industry-focused innovation.

Key facilities include specialist centres for electrification, autonomous systems, advanced materials and manufacturing processes such as the Centre for Connected and Autonomous Automotive Research or the Advanced Materials Battery Industrialisation Centre. The High Value Manufacturing Catapult and Catapult Network provide access to advanced testing facilities, rapid prototyping capabilities and commercialisation support. Universities like Imperial College London, Oxford and Cambridge drive cutting-edge research in power electronics, battery materials, AI and autonomous systems.

There is government support through automotive investment commitments and the broader £86 billion UK R&D commitment ensures sustained funding for frontier research. The UK Compute Roadmap and AI Research Resource provide access to advanced computing infrastructure, critical for autonomous vehicle development and AI-driven manufacturing optimisation.

Business and government support

Businesses can access comprehensive support packages for automotive investment. The Modern Industrial Strategy and Advanced Manufacturing Sector Plan provide strategic certainty, with £2.5 billion in committed automotive-focused capital and R&D funding through the DRIVE35 programme. Manufacturers can benefit from electricity cost reductions of up to 25%, significant savings for energy-intensive operations.

Access to finance is enhanced through the National Wealth Fund offering equity and debt investment, and the British Business Bank providing £25.6 billion in expanded financial capacity. Trade agreements with over 70 countries and territories, including tariff-free EU access and landmark deals with the USA and India, ensure market access for UK-manufactured vehicles and components.

Talent

The UK automotive sector benefits from a highly skilled workforce of 133,000, with world-leading expertise across vehicle design, manufacturing, electronics and software development. Over 2.6 million professionals work in advanced manufacturing nationally, providing a deep and aligned talent pool. The future talent pipeline is secured through the government’s Industrial Strategy upskilling programme, committing £1.2 billion each year for skills by 2028-29.

Educational excellence is anchored by four of the world's top ten universities and the 32 dedicated automotive R&D and design centres offering specialised training. Government initiatives including Skills England and the National Manufacturing Skills Taskforce are strengthening the talent pipeline. Automotive-specific training through industry partnerships and institutes of technology ensures employees possess the specialist skills needed for EV, autonomous and electrification technologies.