The 2020s have proved so far to be a decade of rapid transformation for the automotive industry, and 2025 has been no different. Some challenges remain familiar – geopolitical and economic uncertainty, the zero emission transition, navigating the complexity of global supply chains. Others have been new and profound – the upending of international trade relations by new US tariff policy and a cyber incident that cast vast ripples across production at every level.
Yet despite the headwinds, UK Automotive remains a global leader in advanced manufacturing, engineering excellence and sustainability. Our members are pioneering the future of mobility – from zero emission vehicles and automated technologies to remanufacturing and the circular economy. The industry’s contribution to jobs, investment and exports is immense, and its potential to drive growth and decarbonisation is unmatched.
SMMT’s role is, and always has been, to champion, support and enable that potential. In 2025, we delivered on that mission with renewed energy and purpose. Continued constructive engagement with government delivered regulatory clarity over end of sale for 2035 and amendments to the Vehicle Emissions Trading Scheme. Long-running campaigns for consumer incentives
bore fruit with the launch of the Electric Car Grant and extension of commercial vehicle grants. Supportive trade missions and collaboration with trade negotiators saw the UK become the first nation to secure an automotive trade deal with the US on new terms. And the long-awaited Industrial Strategy has now launched, featuring automotive as a key sector.
Our influence has never been more critical for industry. Funding unlocked for manufacturers, new global markets opened, and the sector’s voice heard at the highest levels of government.
The pace of change is relentless. But so too is the resilience, ingenuity and determination that define UK Automotive. This report is a testament to that spirit, and to the collective strength of an industry that continues to adapt, innovate and lead.
SMMT continues to expand support for its members in challenging times – from technical guidance and training to business development, networking and market intelligence. Our events, reports and campaigns have highlighted the best of British automotive, while our international missions have given members the opportunity to forge new business around the world.
The decade of change shows no sign of stopping – ongoing tightening of the ZEV mandate, tax changes directly impacting drivers, possible disruption from rules governing EV trade between the UK and EU, and those are just the ones we can already anticipate.
What remains certain, however, is SMMT’s ability to give industry the strongest possible voice and the support for businesses to achieve their potential, whatever conditions come our way. While the road ahead is never straightforward, an effective trade association will help the sector continue to navigate towards success and growth.
