Manufacturing Competitiveness Insight Report

The UK automotive industry remains a cornerstone of UK manufacturing, but its competitive position is under increasing pressure. Production volumes have declined since 2019, while global investment, rising labour and energy costs, structural change across Europe and growing competition from China are reshaping the economics of automotive manufacturing.

Against this backdrop, strengthening manufacturing competitiveness is now a strategic requirement for the sector.

This report examines the ZEV value chain to identify where cost, labour intensity, automation potential and supply-chain risk converge, and where the UK can capture the greatest value. The opportunity is significant.

Published: 15/10/2026

Manufacturing Competitiveness Insight Report

UK Zero Emission Vehicle Manufacturing: Competitiveness and strategic priorities for the sector