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Motor Vehicle Manufacturing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Yusuf Allinson Yusuf Allinson London, United Kingdom Last Updated: May 2025 SIC UK-C291

Revenue

£1.2tr

2025-26

£1.2tr

Past 5-Year Growth

Profit

£XX.Xbn

Employees

2m

Businesses

4,972

Wages

£XX.Xbn

Motor Vehicle Manufacturing in the UK industry analysis

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025.

Trends and Insights

  • Environmental policies change the automotive market. Car manufacturers are adjusting to stricter environmental laws by producing more electric vehicles to align with changing demand conditions.
  • European car exports to the US will drop sharply. Tariffs will make European cars significantly less competitive in the US market. Germany will be hit the hardest, as it accounts for nearly two-thirds of European auto exports to the US.
  • Large multinationals dominate European car production. Concentration is low despite because large players like Volkswagen and Jaguar Land Rover holding a huge chunk of the market. Production of electric vehicles by large companies is bolstering their market share.
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Top Questions Answered in this Report

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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 £1.2tr in 2025.

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

There are 4,972 businesses in the Motor Vehicle Manufacturing industry in the United Kingdom, which has grown at a CAGR of 4.9 % between 2020 and 2025.

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 3.5 % 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 does the Motor Vehicle Manufacturing industry in the United Kingdom include?

Passenger cars and Vans and minivans are part of the Motor Vehicle Manufacturing industry in the United Kingdom.

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.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Real world driving tests drive up compliance costs. Car makers must comply with heavy regulation at a national and European level. All new cars must pass strict health and safety checks, as well as real world driving tests harmonised for most European countries.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Motor Vehicle Manufacturing in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

High steel prices ratchet up purchase costs. Semiconductor shortages and higher steel prices have made production more expensive in recent years. Steel prices are coming down in 2025, reducing purchase costs.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Motor Vehicle Manufacturing in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

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)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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

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