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    UK Automotive Industry

    ID: MRFR/AM/45348-HCR
    200 Pages
    Sejal Akre
    September 2025

    UK Automotive Industry Report Market Research Report By Vehicle Type (Passenger Car, Hatchback, Sedan, SUV, MUV, Commercial Vehicle, Lcvs, Heavy Trucks, Buses Coaches) and By Propulsion Type (Ice Vehicle, Electric Vehicle) - Forecast to 2035

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    UK Automotive Industry Report Market Research Report — Global Forecast till 2035 Infographic
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    Table of Contents

    UK Automotive Industry Summary

    The UK automotive industry is projected to experience substantial growth, reaching 199.8 USD billion by 2035.

    Key Market Trends & Highlights

    UK Automotive Industry Report Key Trends and Highlights

    • The market valuation for the UK automotive industry stands at 91.7 USD billion in 2024.
    • From 2025 to 2035, the industry is expected to grow at a compound annual growth rate of 7.34%.
    • By 2035, the market is anticipated to nearly double in size, reaching 199.8 USD billion.
    • Growing adoption of electric vehicles due to increasing environmental regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 91.7 (USD Billion)
    2035 Market Size 199.8 (USD Billion)
    CAGR (2025-2035) 7.34%

    Major Players

    Vauxhall, Volkswagen, Audi, Land Rover, Jaguar, Nissan, Mini, Fiat, Honda, Mercedes-Benz, Skoda, Ford, Peugeot, BMW, Toyota

    UK Automotive Industry Trends

    The UK automotive industry is currently experiencing several important trends driven by technological advancements and environmental policies. One key market driver is the increasing shift towards electric vehicles (EVs). The UK government has set ambitious targets to ban the sale of petrol and diesel cars by 2030, pushing manufacturers to innovate and invest heavily in EV development. This change is further supported by the expansion of EV charging infrastructure across the region, which improves consumer confidence and accelerates the adoption of electric infrastructure.

    Another significant trend is the integration of smart technologies in vehicles, such as advanced driver assistance systems (ADAS) and connectivity features. This change is emerging as an effect of consumers wanting additional options related to safety and convenience, which improves the experience overall. The focus on sustainability also applies in the context of the supply chain, where production developers are innovating with processes and materials that minimize emissions. The latest focus on self-driving cars presents yet another prospect focused on the future within the UK automotive industry.

    There are government programs and funding available for R&D activity in this area with the intention of making the UK a pioneer in autonomous systems. With changes in the auto industry, new prospects pertaining to shared telematics and mobility services are being created, stimulating the formation of new collaborations and entrants to the industry.

    The overall trend reflects a broader societal shift towards smarter, greener, and more connected vehicles, which are set to redefine mobility in the UK.

    UK Automotive Industry Drivers

    Market Segment Insights

    Automotive Industry Report Market Vehicle Type Insights

    The Vehicle Type segment within the UK Automotive Industry Report Market showcases a diversified landscape, reflecting the country's evolving consumer preferences and technological advancements. Passenger cars continue to dominate the market, driven by a growing inclination towards personal mobility and advancements in automotive technology, leading to enhanced fuel efficiency and safety features. Hatchbacks and sedans offer compact, convenient options for urban dwellers and families, appealing to a broad demographic due to their practicality and economic fuel consumption.

    Sports Utility Vehicles (SUVs) are witnessing increased popularity, as they not only provide greater space and comfort but also versatile usage across various terrains, which makes them a preferred choice for both urban and rural buyers. Multifunctional Utility Vehicles (MUVs) cater to large families and groups, emphasizing comfort and spacious interiors while also adapting to leisure activities, which boosts their attractiveness in the market.

    Commercial vehicles play a crucial role in supporting the UK's economy by facilitating trade and logistics, backed by strong consumer demand. Light Commercial Vehicles (LCVs) are particularly significant due to their flexibility and efficiency for businesses in urban settings, addressing the growing need for delivery and transport solutions. Heavy trucks form the backbone of the freight transportation industry, ensuring that goods are efficiently moved across the nation's road networks, while buses and coaches serve not only as public transport options but also accommodate the growing emphasis on sustainability through eco-friendly alternatives.

    The overall dynamics of the Vehicle Type segment are influenced by trends towards electrification and increased regulatory focus on emissions, highlighting a shift towards more sustainable and environmentally friendly transportation solutions in the UK. The integration of advanced technologies such as autonomous driving features and digital connectivity continues to reshape consumer expectations, adding layers of complexity and opportunity within the market's various vehicle types, thus ensuring the UK Automotive Industry Report Market remains robust and adaptable to changing consumer needs and regulatory landscapes.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Automotive Industry Report Market Propulsion Type Insights

    The Propulsion Type segment within the UK Automotive Industry Report Market has evolved significantly, reflecting the broader changes in consumer preferences and regulatory environments. The market is notably characterized by the transition from traditional internal combustion engine (ICE) vehicles towards electric vehicles (EVs), driven by stricter emission regulations and a growing emphasis on sustainability. With the UK government setting ambitious targets for reducing carbon emissions, the shift towards EVs is gaining momentum, leading to increased investments in electric infrastructure and technology development.

    In this context, the ICE vehicle segment remains significant, but it faces challenges as consumer trends lean more towards greener alternatives. The growth of the electric vehicle sector is bolstered by favorable government incentives, advancements in battery technology, and a rising consumer inclination towards environmentally friendly options. Moreover, the expanding charging infrastructure and initiatives to enhance energy efficiency are becoming vital for the EV market's acceptance.

    These trends highlight the dynamic nature of the Propulsion Type segment, showcasing a pivotal shift in the UK's automotive landscape towards more sustainable propulsion methods, ultimately influencing the overall UK Automotive Industry Report Market statistics and growth.

    Get more detailed insights about UK Automotive Industry Report Market Research Report — Global Forecast till 2035

    Regional Insights

    Key Players and Competitive Insights

    The UK Automotive Industry Report Market is characterized by a rich blend of traditional automotive manufacturers and innovative entrants, focusing on sustainability and advanced technologies. Competition within this market is driven by shifting consumer preferences, regulatory demands for lower emissions, and the rapid evolution of electric vehicle technology. As manufacturers race to adapt to these changes, they engage in various competitive strategies, including enhancing product quality, expanding service networks, and fostering partnerships to innovate. The landscape is shaped by established brands and new players who are constantly adapting to the dynamic market environment.

    This ever-evolving competition compels companies to invest in research and development, marketing, and customer engagement strategies to retain their market share and drive growth. Vauxhall has established a notable presence in the UK automotive market, recognized for its commitment to offering a diverse range of vehicles that cater to various consumer needs. The company benefits from strong brand loyalty among UK consumers and is known for its affordability and practicality. Vauxhall's strengths lie in its robust supply chain and local production facilities, which ensure the availability of popular models while minimizing operational costs.

    The brand has also effectively utilized strategic marketing initiatives that resonate with UK consumers, emphasizing its heritage and reliability. By investing in innovation and adapting to trends such as electrification, Vauxhall is positioned well to compete within the UK automotive sector, responding proactively to the growing demand for environmentally friendly vehicles. Volkswagen is a significant player in the UK automotive industry, known for its extensive lineup of vehicles that include sedans, SUVs, and electric models. The company's strengths are anchored in its global reputation for quality, engineering excellence, and a well-established dealership network throughout the UK.

    Volkswagen has made considerable investments in electric vehicle technology and infrastructure, positioning itself as a leader in sustainable automotive solutions. The company’s commitment to innovation is demonstrated through its range of key products, such as the ID series of electric vehicles, designed to meet the evolving preferences of environmentally-conscious consumers. In recent years, Volkswagen has engaged in mergers and acquisitions aimed at strengthening its market presence and enhancing its technological capabilities. These strategic moves underscore its dedication to maintaining a competitive edge in the UK market, capitalizing on consumer demand for advanced, eco-friendly automotive options.

    Key Companies in the UK Automotive Industry market include

    Industry Developments

    Recent developments in the UK Automotive Industry Report Market have highlighted significant shifts among key players. Vauxhall has announced plans for significant electric vehicle investments, aiming for 100% electric vehicle sales by 2028. Volkswagen's commitment to sustainable practices is leading to a surge in electric vehicle manufacturing in the UK, alongside Audi's launch of new electric models. Land Rover and Jaguar have been focusing on hybrid technology while exploring expansion opportunities in the EV segment.

    Nissan is enhancing its battery production capabilities in the UK to support growing demand, while Mini continues to innovate with electric variants. Recent months saw notable merger and acquisition activity, with major firms like Ford acquiring technology startups for their autonomous vehicle programs in September 2023, reflecting market modernization needs. Mercedes-Benz and Fiat are also increasing local manufacturing capacities as the push for domestic production intensifies. The automotive sector's overall growth is evident, with the UK government reporting a rise in production values and a stronger emphasis on Research and Development initiatives to boost the market's competitiveness amidst global challenges.

    This evolution indicates a transitional phase within the UK automotive landscape, focused on sustainability and technological advancements.

    Market Segmentation

    Automotive Industry Report Market Vehicle Type Outlook

    • Ice Vehicle
    • Electric Vehicle

    Automotive Industry Report Market Propulsion Type Outlook

    • Ice Vehicle
    • Electric Vehicle

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 85.78 (USD Billion)
    MARKET SIZE 2024 91.7 (USD Billion)
    MARKET SIZE 2035 199.8 (USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 7.337% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Vauxhall, Volkswagen, Audi, Land Rover, Jaguar, Nissan, Mini, Fiat, Honda, MercedesBenz, Skoda, Ford, Peugeot, BMW, Toyota
    SEGMENTS COVERED Vehicle Type, Propulsion Type
    KEY MARKET OPPORTUNITIES Electric vehicle adoption surge, Autonomous vehicle technology advancements, UK government emissions regulations, Connected car innovations, Increased consumer demand for sustainability
    KEY MARKET DYNAMICS Electric vehicle adoption, Government regulations, Consumer preferences, Supply chain challenges, Technological advancements
    COUNTRIES COVERED UK

    Market Highlights

    Author
    Sejal Akre
    Senior Research Analyst

    She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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    FAQs

    What is the expected market size of the UK Automotive Industry in 2024?

    The UK Automotive Industry is expected to be valued at 91.7 USD Billion in 2024.

    What is the expected market size of the UK Automotive Industry in 2035?

    By 2035, the market size is projected to reach 199.8 USD Billion.

    What is the expected compound annual growth rate (CAGR) for the UK Automotive Industry from 2025 to 2035?

    The expected CAGR for the UK Automotive Industry during this period is 7.337 %.

    Which vehicle type is expected to have the largest market share in 2024?

    The passenger car segment is anticipated to have the largest market share, valued at 35.0 USD Billion in 2024.

    How much is the SUV segment projected to be valued in 2035?

    The SUV segment is projected to be valued at 45.0 USD Billion in 2035.

    Who are the major players in the UK Automotive Industry?

    Some of the major players include Vauxhall, Volkswagen, Audi, Land Rover, and Nissan.

    What is the market value of the hatchback segment in 2024?

    The hatchback segment is valued at 15.0 USD Billion in 2024.

    What opportunities exist for growth in the UK Automotive Industry?

    Emerging trends in electric vehicles and advancements in technology present significant growth opportunities.

    How much is the MUV segment's market value projected to decline by 2035?

    The MUV segment is projected to decline to 2.8 USD Billion by 2035, down from 3.7 USD Billion in 2024.

    What is the projected market size for the sedan segment in 2035?

    The sedan segment is projected to be valued at 40.0 USD Billion in 2035.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. UK Automotive Industry Report Market, BY Vehicle Type (USD Billion)
    45. passenger car
    46. hatchback
    47. sedan
    48. suv
    49. muv
    50. commercial vehicle
    51. lcvs
    52. heavy trucks
    53. buses coaches
    54. UK Automotive Industry Report Market, BY Propulsion Type (USD Billion)
    55. ice vehicle
    56. electric vehicle
    57. Competitive Landscape
    58. Overview
    59. Competitive Analysis
    60. Market share Analysis
    61. Major Growth Strategy in the Automotive Industry Report Market
    62. Competitive Benchmarking
    63. Leading Players in Terms of Number of Developments in the Automotive Industry Report Market
    64. Key developments and growth strategies
    65. New Product Launch/Service Deployment
    66. Merger Acquisitions
    67. Joint Ventures
    68. Major Players Financial Matrix
    69. Sales and Operating Income
    70. Major Players RD Expenditure. 2023
    71. Company Profiles
    72. Vauxhall
    73. Financial Overview
    74. Products Offered
    75. Key Developments
    76. SWOT Analysis
    77. Key Strategies
    78. Volkswagen
    79. Financial Overview
    80. Products Offered
    81. Key Developments
    82. SWOT Analysis
    83. Key Strategies
    84. Audi
    85. Financial Overview
    86. Products Offered
    87. Key Developments
    88. SWOT Analysis
    89. Key Strategies
    90. Land Rover
    91. Financial Overview
    92. Products Offered
    93. Key Developments
    94. SWOT Analysis
    95. Key Strategies
    96. Jaguar
    97. Financial Overview
    98. Products Offered
    99. Key Developments
    100. SWOT Analysis
    101. Key Strategies
    102. Nissan
    103. Financial Overview
    104. Products Offered
    105. Key Developments
    106. SWOT Analysis
    107. Key Strategies
    108. Mini
    109. Financial Overview
    110. Products Offered
    111. Key Developments
    112. SWOT Analysis
    113. Key Strategies
    114. Fiat
    115. Financial Overview
    116. Products Offered
    117. Key Developments
    118. SWOT Analysis
    119. Key Strategies
    120. Honda
    121. Financial Overview
    122. Products Offered
    123. Key Developments
    124. SWOT Analysis
    125. Key Strategies
    126. MercedesBenz
    127. Financial Overview
    128. Products Offered
    129. Key Developments
    130. SWOT Analysis
    131. Key Strategies
    132. Skoda
    133. Financial Overview
    134. Products Offered
    135. Key Developments
    136. SWOT Analysis
    137. Key Strategies
    138. Ford
    139. Financial Overview
    140. Products Offered
    141. Key Developments
    142. SWOT Analysis
    143. Key Strategies
    144. Peugeot
    145. Financial Overview
    146. Products Offered
    147. Key Developments
    148. SWOT Analysis
    149. Key Strategies
    150. BMW
    151. Financial Overview
    152. Products Offered
    153. Key Developments
    154. SWOT Analysis
    155. Key Strategies
    156. Toyota
    157. Financial Overview
    158. Products Offered
    159. Key Developments
    160. SWOT Analysis
    161. Key Strategies
    162. References
    163. Related Reports
    164. UK Automotive Industry Report Market SIZE ESTIMATES & FORECAST, BY VEHICLE TYPE, 2019-2035 (USD Billions)
    165. UK Automotive Industry Report Market SIZE ESTIMATES & FORECAST, BY PROPULSION TYPE, 2019-2035 (USD Billions)
    166. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    167. ACQUISITION/PARTNERSHIP
    168. MARKET SYNOPSIS
    169. UK AUTOMOTIVE INDUSTRY REPORT MARKET ANALYSIS BY VEHICLE TYPE
    170. UK AUTOMOTIVE INDUSTRY REPORT MARKET ANALYSIS BY PROPULSION TYPE
    171. KEY BUYING CRITERIA OF AUTOMOTIVE INDUSTRY REPORT MARKET
    172. RESEARCH PROCESS OF MRFR
    173. DRO ANALYSIS OF AUTOMOTIVE INDUSTRY REPORT MARKET
    174. DRIVERS IMPACT ANALYSIS: AUTOMOTIVE INDUSTRY REPORT MARKET
    175. RESTRAINTS IMPACT ANALYSIS: AUTOMOTIVE INDUSTRY REPORT MARKET
    176. SUPPLY / VALUE CHAIN: AUTOMOTIVE INDUSTRY REPORT MARKET
    177. AUTOMOTIVE INDUSTRY REPORT MARKET, BY VEHICLE TYPE, 2025 (% SHARE)
    178. AUTOMOTIVE INDUSTRY REPORT MARKET, BY VEHICLE TYPE, 2019 TO 2035 (USD Billions)
    179. AUTOMOTIVE INDUSTRY REPORT MARKET, BY PROPULSION TYPE, 2025 (% SHARE)
    180. AUTOMOTIVE INDUSTRY REPORT MARKET, BY PROPULSION TYPE, 2019 TO 2035 (USD Billions)
    181. BENCHMARKING OF MAJOR COMPETITORS

    UK Automotive Industry Report Market Segmentation

     

     

     

    • Automotive Industry Report Market By Vehicle Type (USD Billion, 2019-2035)

      • passenger car
      • hatchback
      • sedan
      • suv
      • muv
      • commercial vehicle
      • lcvs
      • heavy trucks
      • buses coaches

     

    • Automotive Industry Report Market By Propulsion Type (USD Billion, 2019-2035)

      • ice vehicle
      • electric vehicle

     

     

     

     

     

     

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