Q4 2025 Automotive industry demand forecast

The data in this report has been collated by the Advanced Propulsion Centre UK (APC) based on insight gathered from UK original equipment manufacturers (OEMs) as well as forecasts from S&P Global AutoTech Insight, Rho Motion, BloombergNEF (BNEF), Wood Mackenzie, Global Data and KGP Powertrain Intelligence.

Battery electric vehicles (BEVs) are still expected to become the dominant powertrain in the second half of the decade.

Across Europe, the APC’s Quarterly Demand Report details a slightly slower BEV ramp‑up in the near term but a more ambitious long‑term electrification pathway. Conventional hybrids are expected to play a larger transitional role than previously forecast.

For the UK, vehicle production and associated battery demand remain broadly aligned with the previous quarter, with, reflecting a clear upward trajectory over the coming decade.