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Motor Vehicle Manufacturing in the UK - Market Research Report (2015-2030)

Yusuf Allinson Yusuf Allinson London, United Kingdom Last Updated: October 2025 SIC C29.100

Revenue

£73.9bn

2025-26

£73.9bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

81,232

Businesses

696

Wages

£X.Xbn

Motor Vehicle Manufacturing in the UK industry analysis

A lack of investment has pushed the UK Motor Vehicle Manufacturing industry into decline in 2020-21. Engine production is inching downwards as the industry struggles to attract investment due to higher EU production and multinationals seeking to be part of an integrated EU supply chain to reduce costs. The pandemic deepened the industry's troubles – output dropped by 29.3% in 2020, according to the Society of Motor Manufacturers and Traders – and recovery has been challenging. Motor vehicle producers have also been plagued by semiconductor shortages and supply chain issues, which have elevated production costs, squeezing their returns. Petrol and diesel vehicle output is falling and carmakers have shifted their focus to electric vehicles, breathing new life into the automotive sector. Car makers’ revenue is forecast to rise at a compound annual rate of 6.7% over the five years through 2025-26 to £73.9 billion, including a revenue drop of 1.5% in 2025-26, when the average profit margin will be 5.4%. This represents an expansion over the five years through 2025-26 as steel and input prices drop. 

Trends and Insights

  • Supply chain disruptions ease. Car makers dealt with supply chain issues and semiconductor shortages between 2021 and 2023, but higher production of chips in the EU is easing pressure on supply chains.
  • Petrol cars contribute the most revenue. Their share of the market has climbed thanks to the decline in popularity of diesel cars due to their harmful emissions.
  • The South benefits from its strong transport links. It has easy access to the London market and is home to several ports, making the South of England attractive for car manufacturers.
  • A few large multinationals dominate car production. However, these companies are seeing their market shares edge downwards after shifting production overseas to avoid higher costs and benefit from an integrated EU supply chain.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 6.7 % over the past five years, to reach an estimated £73.9bn in 2025.

Trends and Insights

UK car production shrinks as manufacturers switch to electric cars

  • UK car production has been tanking for years due to the cost of producing vehicles in the UK shooting up due to supply chain issues and rising import costs. According to the Society of Motor Manufacturers and Traders (SMMT), the number of cars made in the UK plummeted by 16.1% to 779,117 in 2024. Between January and August 2025, car production declined by 5.9% compared to the same period in 2024, as shown by SMMT, draining revenue.
  • Additional trends and insights available with purchase
Motor Vehicle Manufacturing in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

UK car manufacturers debate ramping up electric vehicle production at home or abroad

  • As the UK accelerates its transition to cleaner vehicles, government initiatives like the electric vehicle charging infrastructure scheme and the Plug-in Van Grant between 2024 and 2027 are likely to significantly boost hybrid and full electric vehicle registrations. With a 2035 ban looming on the sale of new internal combustion engine cars, alternatively fuelled vehicles (AFVs) are poised to dominate the market.

Biggest companies in the Motor Vehicle Manufacturing in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
Jaguar Land Rover Automotive plc
14,712.0
Nissan Motor Manufacturing (UK) Ltd
9,980.0
Bayerische Motoren Werke AG
4,480.0

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Motor Vehicle Manufacturing in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Engines and rebuilding, Petrol cars and Diesel cars. Engines and rebuilding is the largest segment of the Motor Vehicle Manufacturing in the UK.

Trends and Insights

Petrol car sales remain strong, though AFVs are challenging petrol's dominance

  • Petrol cars are vehicles that use petrol as fuel, using a spark-ignited internal combustion engine. Petrol vehicles are the most common type of car produced by UK plants. Many UK-produced cars are exported and petrol cars dominate most of the industry's key export markets.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry manufacture and assemble motor vehicles. These include passenger cars and commercial vehicles, like lorries. They also include buses and special-purpose vehicles, like snowmobiles and fire engines. Manufacturers also make motor vehicle engines and vehicle chassis.

What's included in this industry?

Products and services covered in the Motor Vehicle Manufacturing industry in the United Kingdom include Petrol cars, Diesel cars, Engines and rebuilding , Commercial vehicles and Special purpose vehicles .

Companies

Companies covered in the Motor Vehicle Manufacturing industry in the United Kingdom include Jaguar Land Rover Automotive plc, Nissan Motor Manufacturing (UK) Ltd and Bayerische Motoren Werke AG.

Purchase this report to view all 7 major companies in this industry.

Related Terms

Related terms covered in the Motor Vehicle Manufacturing industry in the United Kingdom include hybrid vehicle, electric vehicle , alternatively fuelled vehicle (afv) , sport utility vehicle (suv), factory rebuilding and powertrain.

Industry Code

SIC 2007

SIC 29.10 - Motor Vehicle Manufacturing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Supply chain disruptions ease. Car makers dealt with supply chain issues and semiconductor shortages between 2021 and 2023, but higher production of chips in the EU is easing...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Petrol cars contribute the most revenue. Their share of the market has climbed thanks to the decline in popularity of diesel cars due to their harmful emissions.

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The South benefits from its strong transport links. It has easy access to the London market and is home to several ports, making the South of England attractive for car manuf...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

A few large multinationals dominate car production. However, these companies are seeing their market shares edge downwards after shifting production overseas to avoid higher ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

JLR's exports shine. The company’s exports to China and the US are increasing, indicating that the company's revenue is outperforming the industry.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Jaguar Land Rover Automotive plc's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Nissan Motor Manufacturing (UK) Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Bayerische Motoren Werke AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Jaguar Land Rover Automotive plc, and factors influencing its performance in the industry
  • Description and key data for Nissan Motor Manufacturing (UK) Ltd, and factors influencing its performance in the industry
  • Description and key data for Bayerische Motoren Werke AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Emissions testing hikes costs for UK manufacturers. Faced with stringent real-world driving tests, car makers must invest more in innovative ways to reduce vehicle emissions.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

High purchase costs eat into profit. Higher freight costs and high steel prices have all picked away at car makers’ returns. Steel prices are expected to fall in 2025, easing...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Motor Vehicle Manufacturing industry in the United Kingdom in 2025?

The market size of the Motor Vehicle Manufacturing industry in the United Kingdom is £73.9bn in 2025.

How many businesses are there in the Motor Vehicle Manufacturing industry in the United Kingdom in 2025?

There are 696 businesses in the Motor Vehicle Manufacturing industry in the United Kingdom, which has declined at a CAGR of 0.2 % between 2020 and 2025.

How may import tariffs affect the Motor Vehicle Manufacturing industry in the United Kingdom?

The Motor Vehicle Manufacturing industry in the United Kingdom is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.

How may export tariffs affect the Motor Vehicle Manufacturing industry in the United Kingdom?

The Motor Vehicle Manufacturing industry in the United Kingdom is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.

Has the Motor Vehicle Manufacturing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Motor Vehicle Manufacturing industry in the United Kingdom has been growing at a CAGR of 6.7 % between 2020 and 2025.

What is the forecast growth of the Motor Vehicle Manufacturing industry in the United Kingdom over the next 5 years?

Over the next five years, the Motor Vehicle Manufacturing industry in the United Kingdom is expected to grow.

What are the biggest companies in the Motor Vehicle Manufacturing industry in the United Kingdom?

The biggest companies operating in the Motor Vehicle Manufacturing industry in the United Kingdom are Jaguar Land Rover Automotive plc, Nissan Motor Manufacturing (UK) Ltd and Bayerische Motoren Werke AG

What does the Motor Vehicle Manufacturing industry in the United Kingdom include?

Petrol cars and Diesel cars are part of the Motor Vehicle Manufacturing industry in the United Kingdom.

Which companies have the highest market share in the Motor Vehicle Manufacturing industry in the United Kingdom?

The company holding the most market share in the Motor Vehicle Manufacturing industry in the United Kingdom is Jaguar Land Rover Automotive plc.

How competitive is the Motor Vehicle Manufacturing industry in the United Kingdom?

The level of competition is high and increasing in the Motor Vehicle Manufacturing industry in the United Kingdom.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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