Strengthening the UK’s industrial base is crucial to growing our economy – and so the automotive sector must be central to the government’s strategy.
Many people believe that car manufacturing left the UK decades ago. The opposite is true. The automotive industry is, in fact, the UK’s largest exporter of goods, accounting for 12 per cent of total exports, generating global trade worth £100bn a year.
The UK continues to manufacture a diverse range of vehicles in an increasingly competitive global market, and host international marques such as Nissan, Ford and Toyota. According to the trade association the Society of Motor Manufacturers and Traders (SMMT), eight out of ten cars produced in the UK are exported overseas, to 140 different markets worldwide. Similarly, the UK produces heavy-duty on- and off-highway vehicles like buses, lorries and diggers, as well as motors and engines – again, more than 80 per cent for export.
The sector is one of the most productive, and UK plants are among the best in the world, creating and protecting nearly 200,000 high-skilled jobs across the supply chain, supporting local economies. The Nissan factory in Sunderland is one of the most successful in the Nissan chain, which is why it keeps attracting investment. In Northern Ireland Wrightbus has a 40 per cent share of the UK’s bus market, and in the north-west Leyland Trucks are a leading manufacturer and exporter of trucks.
It is also why companies have invested intensively in the transition to net zero, reflecting the opportunity for green growth and the need to be competitive in a global market. Despite a downturn in production numbers while this takes place, it’s projected that UK production will once again surpass one million cars and vans in 2028 if markets improve and electric model launches stay on track.
We have recognised expertise in electric motors, batteries, power electronics, fuel cells, hydrogen engines, and their integration into the vehicles. We are firmly on the map for innovation in green technology, one of the foundational blocks for the industry.
Investment by government and industry over 11 years through the Advanced Propulsion Centre UK (APC) alone has created or safeguarded 59,000 jobs and injected £1.64bn of funding – while the sector typically invests around £4bn each year in R&D, second only to pharmaceuticals.
However, if automotive is to continue to drive productivity, growth, and innovation, as well as decarbonise our transport system, we must secure the assets that it relies on. This includes building our own battery production capacity to meet a demand of 93 GWh by 2035 – and ensuring domestic fabrication of high-value components like cathode active material and a source of rare earth metals from a stable supply chain. Without this, our strategically important industry is at risk and with it the economic success of the country.
For more information go to apcuk.co.uk or follow us @theapcuk on X and Advanced Propulsion Centre UK on LinkedIn.
Ian Constance is the chief executive of the Advanced Propulsion Centre (APC)
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