United Kingdom Automotive Industry Market Size, Share, and COVID-19 Impact Analysis, By Type (Commercial Vehicle, Passenger Car), By Propulsion (Electric, ICE), and United Kingdom Automotive Industry Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Automotive Industry Market Insights Forecasts to 2035

• The United Kingdom Automotive Industry Market Size was estimated at USD 90.75 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 7.77% from 2025 to 2035
• The United Kingdom Automotive Industry Market Size is Expected to Reach USD 206.65 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Automotive Industry Market Size is anticipated to reach USD 206.65 Billion by 2035, growing at a CAGR of 7.77% from 2025 to 2035. The UK automotive sector is fuelling due to the existence of key international automotive companies and their merging with local ones. Further, the proliferation of technical support boosts the market expansion.

Market Overview

The United Kingdom automotive industry market refers to the marketplace focused on all key businesses and firms involved in the fabrication, development, distribution, selling, upkeep, and renovation of motor vehicles. The industry primarily produces passenger automobiles and light trucks, including pickups, vans, and SUVs, due to the growing e-commerce business and the growing small and medium-sized enterprises. Further, commercial vehicles like delivery trucks and transport trucks are a secondary aim for all, including vendors and suppliers, to assure according to the end users. Additionally, digital transformation is vital for the transportation and logistics industry for growth, which could be an important asset for the auto sector. The automobile sector is expanding due to several significant causes, including the growing desire for individualized transportation alternatives from consumers, the integration of telematics, and the growing popularity of shared mobility drives the expansion. Moreover, the government's increasing interest and focus on development for this sector boost the market growth, such as in November 2023, the UK government announced a £2 billion investment in the automotive industry, focusing on the development of electric vehicles (EVs) and sustainable manufacturing. This funding was part of a larger £4.5 billion investment aimed at strengthening key manufacturing sectors, including aerospace and clean energy.

Report Coverage

This research report categorizes the market for the United Kingdom automotive industry market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom automotive industry market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom automotive industry market.

Driving Factors

The United Kingdom automotive industry market is influenced by the increasing focus and investment in public transportation infrastructure, particularly heavy-duty and long-distance buses. Besides, regional governments began to upgrade current transportation infrastructure to meet the modern demands from end users and customers, which propels the market growth. The automobile industry players are expected to gain tremendous growth momentum owing to the increasing demand for electric vehicles, including passenger cars and larger buses or trucks, which showcase the automotive development. Factors such as growing awareness about the impact of fuel consumption on the environment, rising prices of petrol, diesel, and gas, and a rising number of EV suppliers have created a sustainable and steadily growing segment of EV consumers and creating new market opportunities for the overall country's automotive industry.

Restraining Factors

The market expansion is restricted by several variables such as high wage costs, and socioeconomic circumstances, resulting in unpredictability, particularly in the future. Moreover, the increasing price of raw materials, such as steel, rubber, glass, and plastic, among other elements, will likely become an obstacle to the market growth. Furthermore, advanced driver assistance systems, augmented reality head-up displays, remote monitoring, and many other digital technologies have been put in current cars, which goes an additional cost.

Market Segmentation

The United Kingdom automotive industry market share is classified into type and propulsion.

• The commercial vehicle segment held a significant share in 2024 and is anticipated to grow at a rapid pace over the forecast period.

The United Kingdom automotive industry market is segmented by type into commercial vehicle, and passenger car. Among these, the commercial vehicle segment held a significant share in 2024 and is anticipated to grow at a rapid pace over the forecast period. The wide usage of the logistics sector makes this demand significant, and drives this segment growth. Moreover, heavy trucks, buses, coaches, and LCVs are examples of commercial vehicles that look like new market opportunities. Commercial vehicles enhance the efficiency of distribution networks and the overall profitability of the industry by reducing threats, increasing pilot accessibility, and simplifying routes, which makes them a considerable on primary visions from key industry players.

• The electric segment dominated the market in 2024 and is expected to grow at a substantial CAGR during the forecast period.

The United Kingdom automotive industry market is segmented by propulsion into electric, and ICE. Among these, the electric segment dominated the market in 2024 and is expected to grow at a substantial CAGR during the forecast period. This is because of the reduction of carbon emissions goals, which is driving up spending in electric connectivity and advances in technology. Further, favorable government subsidies, improvements in battery technology, and a growing customer preference for eco-friendly solutions are all contributing factors to the rise of the electric car industry.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom automotive industry market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Optare Plc
• Wayve
• Eatron Technologies
• Swytch Technology
• Valerann Ltd
• Others

Recent Developments:

• In May 2025, the India-UK Free Trade Agreement (FTA), which finalized, significantly impacted the automotive sector by offering duty concessions and easing trade barriers. The agreement aimed to double bilateral trade to $120 billion by 2030, benefiting both nations.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom automotive industry market based on the below-mentioned segments:

United Kingdom Automotive Industry Market, By Type

• Commercial Vehicle
• Passenger Car

United Kingdom Automotive Industry Market, By Propulsion

• Electric
• ICE