Market Overview

The  UK automotive market  reached a size of 1,082.9 thousand units in 2024. Forecasts anticipate growth to 1,734.9 thousand units by 2033, with a compound annual growth rate (CAGR) of 5.38% for the period 2025-2033. This growth is mainly driven by rising electric vehicle adoption, advancements in connected and autonomous vehicle technologies, and supportive government policies. The market maintains global importance due to strong local manufacturing and expanding EV infrastructure. 

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

UK Automotive Market Key Takeaways

  • Current Market Size: 1,082.9 Thousand Units in 2024
  • CAGR: 5.38% during 2025-2033
  • Forecast Period: 2025-2033
  • The UK's automotive sector is growing due to increased adoption of electric vehicles driven by battery technology and charging infrastructure enhancements.
  • Connected and autonomous vehicle technologies, supported by legislation like the Automated Vehicles (AV) Act, contribute significantly to market growth.
  • The UK retains a leading global position in automotive production, especially in premium and electric vehicle segments.
  • The used car market is expanding, supported by affordability and digital platforms, contributing notably to overall automotive revenues.
  • Government initiatives aim to ban petrol and diesel vehicle sales by 2035, accelerating the shift toward electrification.

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Market Growth Factors

Growth in the UK automotive sector is supported by the increasing importance of electrification and the popularity of EVs․ Rising public and consumer awareness of sustainability issues is driving manufacturers to introduce more EVs and invest in new battery technologies․ This both increases EV range and reduces charging time․ These include the UK government's ban in 2035 on new sales of petrol and diesel vehicles, which provides a firm date by which to rapidly develop EVs․ Simultaneously, strategically positioned charging stations and networks within high-density urban regions improve access to battery recharging․

Connected and autonomous vehicles have also added to market growth․ Real-time traffic data, including vehicle-to-everything (V2X) connectivity between vehicles and roadside infrastructure, is improving safety and convenience․ The booming market for research and development in artificial intelligence and machine learning is transforming the mobility industry․ The Automated Vehicles (AV) Act, introduced in May 2024, will allow self-driving vehicles on UK roads from 2026 and is expected to support GBP 42 billion in the UK economy and 38,000 highly-skilled jobs by 2035․

The United Kingdom has a world-leading automotive industry, with home production supported by a reputation for luxury brands and engineering skill․ Investment in research and development and electric vehicle infrastructure helps to ensure it remains competitive with global standards․ In addition, the secondhand vehicle market, with its affordability and longevity, as well as advances in electronic markets, supports automotive aftermarket demand and contributes to overall industry growth․

Market Segmentation

Type Insights:

  • Passenger Vehicles: Comprise a key market segment encompassing personal transport vehicles.
  • Commercial Vehicles: Include various vehicles used for business and transportation of goods.
  • Two Wheelers: Cover motorcycles and similar light vehicles used for commuting.

Propulsion Type Insights:

  • Gasoline: Traditional internal combustion engine vehicles using gasoline.
  • Diesel: Vehicles powered by diesel engines.
  • Electric: Vehicles powered by electric motors with battery technology advancements driving growth.
  • Others: Include alternative propulsion types not categorized under the main ones.

Sales Channel Insights:

  • Dealerships: Physical retail outlets selling vehicles directly to customers.
  • Online Sales: Digital platforms facilitating vehicle purchases.
  • Direct Sales: Sales conducted directly by manufacturers or fleets.
  • Others: Other sales channels not explicitly categorized.

Regional Insights

The report highlights a comprehensive analysis of key UK regions including London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others. While no specific statistical dominance by region is stated, the presence of extensive regional segmentation indicates widespread market activity across the UK.

Recent Developments & News

  • July 2025: Hyundai Motor UK revamped its Hyundai Business website to support company car drivers and SMEs transitioning to electric vehicles, featuring tailored navigation and personalized Virtual Account Manager services.
  • March 2025: BMW Group UK won Fleet Manufacturer of the Year for the seventh consecutive year and received accolades for its electric BMW i5 and MINI Countryman models.
  • September 2024: Chinese manufacturer Chery is considering UK expansion by adding a design or R&D center.
  • May 2024: UK AI company Wayve secured a $1.05 billion investment from SoftBank Group, NVIDIA, and Microsoft to advance AI-powered autonomous vehicles.

Key Players

  • Hyundai Motor UK
  • BMW Group UK
  • Chery
  • Wayve

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