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

The UK motor vehicles sector experienced fluctuating trends in production from 2013 to 2023. The sector began with a moderate increase, peaking in 2016 before facing a decline in 2017. A notable recovery occurred in 2019, but the sector was hit hard in 2020 by a significant decline. The subsequent years showed a recovery, culminating in a modest growth by 2023, standing at 30.36 billion pounds sterling. The last two years showed slight increases of 6.81% and 1.42% respectively. The compound annual growth rate (CAGR) over the past five years reflected a modest positive trend of 2.33%.

Forecasts from 2024 to 2028 suggest a steady yet modest growth in production, with a forecasted five-year CAGR of 1.13%, indicating a stable but slow recovery. The forecasted increase in production by 2028 is estimated to reach 32.5 billion pounds sterling, representing a total growth of 5.77% from 2023.

Future trends to watch for include:

• The impact of Brexit on supply chains and labor availability
• Technological advancements in electric and autonomous vehicles
• Shifts in consumer preferences towards sustainable transport options
• Government policies and incentives for green energy vehicles