UK Automotive Market

UK Automotive Market Overview: 

The UK automotive market size reached 1,082.9 Thousand Units in 2024. Looking forward, IMARC Group expects the market to reach 1,734.9 Thousand Units by 2033, exhibiting a growth rate (CAGR) of 5.38% during 2025-2033. The market is driven by the increasing adoption of electric vehicles (EVs) because of advancements in battery technology and charging infrastructure, along with the rising incorporation of connected and autonomous vehicle technology across the country. The UK plays a major role in the global car industry, with strong local production, a well-established aftermarket, and fast growth in electric vehicle adoption. S&P Global Mobility expects over 2 Million cars to be sold there in 2025.

UK Automotive Market Trends:

Rising Electrification and Adoption of Electric Vehicles (EVs)

A shift toward electric cars is stimulating the market growth in the UK auto market. As people are becoming more environment-conscious, manufacturers are expanding their EV offerings and investing in new technologies. Battery technology advancements are increasing the range of EVs and shortening charging times, making them more convenient and appealing to a broader range of users. Governing agencies of the country are supporting the transition to EVs with plans to ban the sale of petrol and diesel vehicles by 2035, establishing a firm deadline for change. This policy encourages manufacturers to speed up the development of EV models and invest in emerging technologies. Moreover, the increasing number of charging stations is improving accessibility and alleviating concerns about battery depletion. Charging stations are strategically located in congested areas, such as shopping malls, offices, and major thoroughfares, allowing drivers to recharge their batteries while going about their daily activities. According to the IMARC Group’s report, the UK automotive market 2024 is projected to exhibit a growth rate (CAGR) of 27.20% from 2024 to 2032. The shift is also influencing the overall UK automotive outlook, with electrification seen as a central theme in the nation’s long-term transport strategy.

Advancements in Connected and Autonomous Vehicle Technology

Connected cars, which include advanced entertainment systems, real-time traffic updates, and vehicle-to-everything (V2X) connectivity, are becoming popular in the UK cars market. The combination of these technologies improves driver safety, enhances route planning, and offers a range of digital services for convenience. Companies are also investing in autonomous vehicle research and development (R&D) activities in self-driving technology. This can improve road safety, reduce traffic congestion, and introduce innovative mobility solutions. Innovations in artificial intelligence (AI) and machine learning (ML) are driving these advancements, resulting in increasing interest and investments from automotive companies. Furthermore, the Automated Vehicles (AV) Act, passed by governing agencies of the country in May 2024, is a key step toward the implementation of self-driving cars. The AV Act will enable self-driving vehicles to operate on British roads by 2026, putting the country at the forefront of self-driving technology. This will also create the potential for an industry worth up to GBP 42 Billion, with an additional 38,000 skilled jobs expected by 2035. These advances are set to expand the UK automotive service market, creating opportunities across diagnostics, telematics, and maintenance services. At the same time, growing consumer interest in connected mobility is supporting gains in UK automotive market share.

UK Maintaining Top Position in Global Automotive Rankings

The UK car industry continues to hold a strong presence on the global automotive stage, backed by solid export figures, advanced engineering capabilities, and a push toward next-gen vehicle technologies. Leading brands and manufacturing hubs in the UK have carved out a reputation for quality, particularly in premium and electric segments. British-built cars are consistently in demand across Europe, Asia, and North America. Strategic investments in R&D and EV infrastructure are helping the country stay relevant as global standards shift. The UK’s role as a design and innovation center keeps it at the forefront of international partnerships, reinforcing its importance as more than just a production base. According to automotive industry UK statistics, the sector has shown resilience and steady growth, especially in areas such as powertrain innovation and green manufacturing. These achievements are also contributing to the expanding UK auto market share, especially in Europe and emerging EV markets.

Secondhand Vehicles Fueling Industry Expansion

The used car segment in the UK used car market has seen notable growth, driven by affordability, digital platforms, and longer vehicle life spans. Economic uncertainty and rising new car prices have pushed many buyers to consider pre-owned options. Online marketplaces and financing tools have made it easier to compare and purchase used vehicles, accelerating sales across the country. Hybrid and electric cars are also showing up more frequently in the secondhand market, widening consumer choice.
This segment has become a key contributor to overall automotive revenues and is likely to remain resilient, especially as new car supply chains continue to stabilize gradually. Increased demand for spare parts, warranty plans, and upgrades is also fueling the UK car aftermarket market, which supports both consumers and independent service providers.

UK Automotive Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, propulsion type, and sales channel.

Type Insights:

• Passenger Vehicles
• Commercial Vehicles
• Two Wheelers

The report has provided a detailed breakup and analysis of the market based on the type. This includes passenger vehicles, commercial vehicles, and two wheelers.

Propulsion Type Insights:

• Gasoline
• Diesel
• Electric
• Others

A detailed breakup and analysis of the market based on the propulsion type have also been provided in the report. This includes gasoline, diesel, electric, and others.

Sales Channel Insights:

• Dealerships
• Online Sales
• Direct Sales
• Others

The report has provided a detailed breakup and analysis of the market based on the sales channel. This includes dealerships, online sales, direct sales, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Leading UK Automotive Companies:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Automotive Market News:

• July 2025: Hyundai Motor UK revamped its Hyundai Business website to better support company car drivers and SMEs shifting to electric vehicles. The new site offers tailored navigation for different fleet sizes and highlights its Virtual Account Manager for personalized SME support. This move underlines Hyundai’s commitment to digital tools and EV adoption in the UK’s business and fleet sectors, helping firms make confident, informed choices in electrified mobility.
• March 2025: BMW Group UK continued its award-winning run in 2025, clinching Fleet Manufacturer of the Year for the seventh straight year at the Fleet News Awards. The all-electric BMW i5 was named Best Premium Electric Car by Driving Electric, reinforcing BMW’s EV credentials. MINI also earned recognition, with the Countryman awarded Medium Crossover of the Year at the UK Car of the Year Awards, boosting the brand’s appeal among British consumers.
• September 2024: Chinese car manufacturer Chery is considering expanding its UK operations to include a design or R&D center, capitalizing on the country's expertise in automotive design and development.
• May 2024: Wayve, one of the leading AI companies in the UK, secured a historic $1.05 billion investment to develop next-generation AI-powered self-driving vehicles, backed by SoftBank Group, NVIDIA, and Microsoft.

UK Automotive Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK automotive market from 2019-2033
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK automotive market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK automotive industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.