NAA Update: UK vehicle manufacturing had various challenges in 2025 but output could rise to 824,000 units in 2026
UK vehicle manufacturing endured a difficult 2025 but the sector showed resilience and ended the year with renewed momentum, with electrified vehicles reaching a record 41.7% of production.
Welcome to this month’s newsletter, and I hope you are all keeping well.
UK vehicle manufacturing endured a difficult 2025, with restructuring, weak global demand, trade uncertainty and a major cyber incident all suppressing output. Despite this, the sector showed resilience and ended the year with renewed momentum. Electrified vehicles reached a record 41.7% of production, with further EV models coming onstream in 2026. Forecasts suggest output could rise to 824,000 units this year, with potential to hit one million by 2027 if conditions remain supportive.
Delivering the UK’s Industrial and Trade Strategies, strengthening supply chains, securing global market access and advancing innovation – such as self‑driving technology – will be critical to sustaining recovery and investment.
Support is available however, in the form of the DRIVE35 funding – from start-up to concept; innovation to commercialisation; and onward to large-scale transformation, DRIVE35 offers more zero emission funding opportunities than ever before, as well as supporting enhancement of the wider industry’s competitiveness. Further details can be found via this link: Automotive funding opportunities
Moving on to the membership side, we would like to welcome three new members:
CoByEx – An independent global connectivity partner offering scalable telecoms, connectivity, and IT solutions that drive efficiency and value.
Forteq UK – Produce complex, yet functional plastic components, subassemblies and complete devices with the highest level of precision and quality to the automotive industry.
RDA UK – Tax Advisors responsible for HMRC’s Research and Development Tax Incentive Scheme and Intellectual Property. RDA is an expert in achieving Research and Development tax credits for businesses across all industry sectors through a unique, specialist consultancy-and-advocacy approach.
We are looking forward to working with each of these new members and welcoming them to our ongoing networking event programme during the course of this year.
Paul Jones
NAA CEO
