Forecast: Production in Manufacture of Motor Vehicles Sector in the UK

In the UK, the motor vehicle manufacturing sector has shown substantial variability over the past decade. From 2013 to 2023, the sector's production value increased considerably from £41.87 billion to £55.03 billion. Despite downturns in 2019 and 2020, the industry rebounded with notable year-on-year growth of 16.76% in 2021 and 7.3% in 2022. By 2023, production experienced a slight year-on-year increase of 1.86%. The sector’s 5-year CAGR from 2019 to 2023 stands at approximately 0.75%, indicating moderate growth. Forecasts for 2024 to 2028 predict a steadier rise, with a 5-year CAGR of 1.45% leading to a 7.46% overall growth rate by 2028.

Future trends to watch for:

• Adoption of electric vehicles (EVs) and the impact on production volumes and values.
• Technological advancements in autonomous driving and connected car technologies.
• Shifts in global supply chains and UK-specific industrial strategies post-Brexit.
• Potential impacts of environmental regulations and sustainability initiatives.