More than half of all cars produced in the United Kingdom (UK) between 2017 and 2022 were built to be powered by petrol. The share of petrol-powered cars, as well as hybrid and battery electric cars in UK's total car production was increasing in the observed period. The share of diesel cars, on the other hand, declined between 2017 and 2022.

The United Kingdom produced roughly 905,100 passenger cars in 2023. This marked the first year when figures increased since they started declining in 2016. Compared to 2022, production increased by approximately 16.8 percent in 2023. Challenges on the domestic front The United Kingdom’s automotive industry has been struggling following the Brexit referendum and was hit hard by the coronavirus pandemic, supply chain shortages, and raw material price increases. The United Kingdom was once the largest exporter of cars, and its long-standing brands still enjoy success worldwide. The UK domestic market, however, has been faring slightly worse than production for overseas. UK auto industry loses ground In 2023, the United Kingdom did not make it into the top 10 in a list of leading car producers worldwide. That same year, China was the world’s leading manufacturer of such motor vehicles. The country produced a staggering 26.1 million units.

In 2023, UK Automotive AI Market reached a value of USD 474.7 million, and it is projected to surge to USD 2213.1 million by 2030

The United Kingdom's employment in all automotive sectors mainly increased from 2013 to 2020. By 2023, the British automotive industry employed 813,000 people. This represents an increase of around 4.2 percent compared to the previous year's employment figure.

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 because of higher EU production and multinationals wanting 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 (SMMT) – 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, further sinking revenue in recent years. Car makers have abandoned diesel vehicles to produce 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 revenue drop of 1.5% in 2025-26.

There’s a glimmer of hope – hybrid and pure electric vehicle sales are rising, both at home and abroad, pushing output at factories. Output climbed in 2023, driven by a resurgence in exports of electric and hybrid cars to the EU. Manufacturers produced 905,117 car units in 2023. However, output dropped to 779,584 units in 2024 because of the transition to electric vehicles. Revenue is expected to drop by 4.2% in 2024-25, with the average profit margin forecast to reach 5.9%. Manufacturers are passing on higher production costs, and luxury vehicle sales are driving profit. Production is set to remain high in 2025 and most car makers passing on higher prices is set to limit revenue decline.

To plot a path to recovery, car manufacturers will focus on making alternatively fuelled vehicles (AFVs) in response to the UK’s ban on selling new petrol and diesel vehicles in 2035. However, demand for AFVs is currently weak, threatening the industry’s growth potential – some car makers are questioning their future in the UK unless the government does more to drive up demand for electric vehicles. The government has poured more money into building electric charge points to boost uptake but has withdrawn subsidies for buying electric cars. Still, electric vehicles will dominate the market in the long term as public and private efforts are pointed towards net zero policies. Revenue is expected to expand at a compound annual rate of 1.4% over the five years through 2030-31 to reach £79.3 billion.

Market Size statistics on the Motor Vehicle Manufacturing industry in the UK

"Fuel efficiency" and "Safety" are the top two answers among UK consumers in our survey on the subject of "Purchase criteria for cars".The survey was conducted online among 5,460 respondents in the UK, in 2025. Looking to gain valuable insights about car owners across the globe? Check out our reports about consumers of car brands worldwide. These reports provide readers with a detailed understanding of car owners: their identities, preferences, opinions, and how to effectively engage with them.

The UK Automotive Camera Market Report is Segmented by Type (Drive Camera, and Sensing Camera), by Application (ADAS, Parking and Others) and Vehicle Type (Passenger Cars, Commercial Vehicles)

Car Production in the United Kingdom decreased to 37072 Units in August from 69127 Units in July of 2025. This dataset provides - United Kingdom Car Production- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about United Kingdom Motor Vehicle Production

• United Kingdom Motor Vehicle Production was reported at 1,025,474.000 Unit in Dec 2023.
• This records an increase from the previous number of 876,614.000 Unit for Dec 2022.
• UK Motor Vehicle Production data is updated yearly, averaging 1,649,792.000 Unit from Dec 1997 to 2023, with 27 observations.
• The data reached an all-time high of 1,981,051.000 Unit in 1998 and a record low of 876,614.000 Unit in 2022.
• UK Motor Vehicle Production data remains active status in CEIC and is reported by International Organization of Motor Vehicle Manufacturers.
• The data is categorized under World Trend Plus’s Association: Automobile Sector – Table RA.OICA.MVP: Motor Vehicle Production: by Country.

Number of Businesses statistics on the Motor Vehicle Manufacturing industry in the UK

In 2024, there were 380 enterprises in the motor vehicles, trailers and semi-trailers manufacturing industry in the United Kingdom with a turnover of more than five million British pounds.

The UK Automotive Carbon Fiber Composites Market report segments the industry into Application Type (Structural Assembly, Powertrain Component, Interior, Exterior, Others), Production Type (Hand Layup, Resin Transfer Molding, Vacuum Infusion Processing, Injection Molding, Compression Molding), and Vehicle Type (Passenger Cars, Commercial Vehices). Get five years of historical data alongside five-year market forecasts.

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The automotive EPS market share in UK is expected to increase by 1.33 million units from 2021 to 2026, at a CAGR of 7.59%.

This automotive EPS market in UK research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the automotive EPS market in UK segmentation by type (column, pinion, and double pinion) and vehicle type (passenger cars and commercial vehicles). The automotive EPS market in UK report also offers information on several market vendors, including ATS Automation Tooling Systems Inc., BorgWarner Inc., Hitachi Ltd., Hyundai Motor Group, Infineon Technologies AG, JTEKT Corp., Mando Corp., Melrose Industries Plc, Mitsubishi Electric Corp., and NEXTEER AUTOMOTIVE GROUP LTD. among others.

What will the Automotive EPS Market Size in UK be During the Forecast Period?

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Automotive EPS Market in UK: Key Drivers, Trends, and Challenges

The need to share the increase in production cost between OEMs and end-users is notably driving the automotive EPS market growth in UK, although factors such as fluctuating costs of raw materials may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive EPS industry in UK. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Automotive EPS Market Driver in UK

One of the key factors driving the automotive EPS market growth in UK is the need to share the increase in production cost between OEMs and end-users. Several vehicle components are being replaced by lightweight materials, such as aluminum, to improve fuel efficiency and achieve superior performance. However, the governments of several countries have imposed sanctions on the suppliers of raw aluminum. For instance, on May 8, 2019, US President Trump issued Executive Order 13871 that imposed sanctions on transactions involving minerals and industrial commodities exported from Iran. These sanctions led to a steep hike in aluminum prices and created a supply-demand imbalance in the market. Owing to the rapid rise in the demand for advances in automotive EPS systems, the rise in the cost of raw materials such as aluminum and steel has a negligible impact on the market. Sharing the burden of the increased cost between OEMs and end-users is expected to positively impact the market growth during the forecast period.

Key Automotive EPS Market Trend in UK

Another key factor driving the automotive EPS market growth in UK is the adoption of steer-by-wire technology to eliminate mechanical linkages between the steering and wheels of vehicles for enhancing driving comfort and improving fuel efficiency. Additionally, the steer-by-wire technology also provides improved performance, reliability, and safety, along with reduced manufacturing and operating costs and better fuel economy. This technology also eliminates the use of many mechanical components, such as the column, steering shaft, and gear reduction mechanism. Therefore, steer-by-wire technology will be beneficial for automotive OEMs that are constantly facing pressure to comply with the regulatory emission norms. Such factors are expected to positively impact the automotive EPS market in UK during the forecast period.

Key Automotive EPS Market Challenge in UK

One of the key challenges to the automotive EPS market growth in UK is the fluctuating costs of raw materials. Fluctuations in the cost of raw materials such as steel, aluminum, and hardened deep-drawn steel are directly correlated to the price of EPS. The cost of these raw materials keeps fluctuating based on various macroeconomic factors, such as inflation, labor costs, and changes in regulatory policies. The cost of iron ore, for instance, has been increasing since the beginning of 2019; a cumulative increase of about 90% in iron ore prices was registered from January 2019 until the end of July 2019. Thus, raw material suppliers have been compelled to pass on the increase in costs to downstream industries. Such decisions by raw material suppliers have an adverse impact on the growth of various manufacturers, including EPS manufacturers, which is expected to limit the growth of the automotive EPS market in UK during the forecast period.

This automotive EPS market in UK analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the automotive EPS mar

The UK Automotive Actuators Market has been segmented By Actuator Type (Hydraulic Actuator, Electric Actuator, and Pneumatic Actuator), By Application Type (Throttle Actuator, Seat Adjustment Actuator, Brake Actuator, Closure Actuator, and Other), Vehicle Type (Passenger Car and Commercial Vehicle)

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Automotive Service Market Size 2025-2029

The automotive service market size is forecast to increase by USD 457.3 billion, at a CAGR of 8.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing vehicle population and the ongoing digitization and electrification trends in the industry. The expanding vehicle base presents a substantial opportunity for service providers, as routine maintenance and repairs remain essential for ensuring the longevity and safety of vehicles. Moreover, the shift towards digitization and electrification is transforming the automotive landscape, with advanced technologies such as telematics, connectivity, and autonomous systems increasingly shaping the service requirements. However, the market faces challenges that necessitate strategic planning and adaptability. Uncertainty in the industry, particularly due to regulatory changes, economic fluctuations, and evolving consumer preferences, poses a significant risk for market participants.
Additionally, the increasing complexity of vehicles, driven by digitization and electrification, demands a high level of expertise and investment in technology and training for service providers. To capitalize on opportunities and navigate challenges effectively, companies must focus on innovation, collaboration, and flexibility, ensuring they stay ahead of the curve in this dynamic and evolving market.

What will be the Size of the Automotive Service Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with dynamic market activities unfolding across various sectors. Fleet maintenance remains a significant focus, as businesses seek to optimize their vehicle fleets for maximum efficiency and productivity. Steering system repair and drivetrain repair are crucial services, ensuring the smooth operation of vehicles and minimizing downtime. Timing belt replacement and emission system repair are essential for maintaining engine performance and complying with regulatory requirements. Reputation management is increasingly important in the competitive automotive service landscape, with customer satisfaction a key differentiator. Alternator replacement, tire rotation, and A/C repair are common services that impact customer experience and loyalty.

Mobile repair services offer convenience, while engine repair and struts replacement address critical vehicle issues. Service contracts, brake pad replacement, and diagnostic scanners provide value-added services, enhancing customer offerings and shop efficiency. Light bulb replacement and wiper blade replacement are routine services that contribute to overall vehicle maintenance. Exhaust system repair, heating system repair, and electrical system repair address specific vehicle needs. Parts sourcing, ADAS calibration, and paint repair require specialized tools and expertise. Preventive maintenance, fuel system repair, and transmission service ensure vehicle longevity and reduce repair costs. Specialized tools and shop management software streamline operations and improve labor rates.

Market trends include the integration of technology, such as online scheduling, roadside assistance, and performance tuning. Mechanic certification and technician training ensure a skilled workforce, while recall repair and oxygen sensor replacement address safety concerns. Warranty repair and spark plug replacement address manufacturer issues. In the evolving market, continuous adaptation and innovation are essential to meet customer needs and stay competitive.

How is this Automotive Service Industry segmented?

The automotive service industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Mechanical services
  Exterior and structural services
  Maintenance services


Vehicle Type

  Passenger cars
  Light commercial vehicles
  Two wheelers
  Heavy commercial vehicles


Channel

  OEM authorized service centers
  Independent garages
  Mobile repair services
  Digital service platforms


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The mechanical services segment is estimated to witness significant growth during the forecast period.

The market encompasses a range of offerings, from fluid flushes and starter replacement to windshield repair and transmission rebuilding. Customer satisfaction is a key driver in this market, with services such as wheel bearing replacement, fuel injection cleaning, body repair, and

UK vehicle production faces historic lows due to US tariffs and weak European demand, with projections showing a significant decline in output by 2025, according to the SMMT.

In 2023, the United Kingdom imported vehicles to the value of approximately 90.1 billion U.S. dollars. This category comprises vehicles other than railway or tramway rolling-stock, and parts and accessories thereof.

Germany Motor Vehicle Exports: Passenger: W Europe: ow United Kingdom data was reported at 390,114.000 Unit in 2024. This records a decrease from the previous number of 396,766.000 Unit for 2023. Germany Motor Vehicle Exports: Passenger: W Europe: ow United Kingdom data is updated yearly, averaging 631,755.000 Unit from Dec 2002 (Median) to 2024, with 21 observations. The data reached an all-time high of 820,897.000 Unit in 2014 and a record low of 285,800.000 Unit in 2021. Germany Motor Vehicle Exports: Passenger: W Europe: ow United Kingdom data remains active status in CEIC and is reported by German Association of the Automotive Industry. The data is categorized under Global Database’s Germany – Table DE.RA010: Motor Vehicle Exports: Yearly.