The UK’s manufacturing and automotive industries are showing clear signs of forward momentum, supported by structural shifts in technology, policy alignment and product innovation. While cost pressures and regulatory uncertainty remain material considerations, recent data points to an increasingly strategic outlook among firms looking to position themselves for long-term opportunity.
In the automotive sector, new car registrations rose for the third consecutive year in 2025, with the UK market exceeding two million units sold. Growth was evident across retail and business channels, suggesting a broad-based recovery in demand. A notable feature of this recovery is the strengthening role of battery electric vehicles (BEVs), which accounted for 23.4% of the total market over the year. December alone saw BEVs achieve a market share of 32.9%, briefly exceeding the Zero Emission Vehicle mandate requirement and underlining the sector’s underlying direction of travel.
The growing variety of available electric models is reshaping buyer choice and competitive dynamics. By the end of 2025, more than 160 BEV models were on offer in the UK, with an additional 60 expected to enter the market in 2026.
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