This week, the world’s commercial vehicle manufacturers and suppliers descended on Hannover to showcase the latest freight, logistics and passenger transport innovations at IAA Transportation 2026, Europe’s leading exhibition for HGV, van and bus technology.
New SMMT analysis released to coincide with the event highlights the UK’s commercial vehicle opportunity. With £1.1 billion committed since 2021, the UK is strengthening manufacturing, supply chains and zero-emission vehicle production, creating a platform for long-term growth.
This investment reflects the depth and ambition of a sector already producing, or preparing to produce, more than 30 models and conversions. From efficient combustion engines to battery electric and hydrogen technologies, alongside thousands of advanced components, the UK has a broad base from which to lead innovation as road transport decarbonises.
Commercial vehicle activity extends across every UK region, supporting skilled employment and regional growth. This nationwide capability makes the sector both economically valuable and strategically important.
International confidence provides another reason for optimism, much of which was on show in Hannover this week. Businesses from more than 20 countries operate UK manufacturing, R&D, supply or service facilities. Global collaboration can unlock further progress, supported by the government’s £4.5 billion DRIVE35 programme, which has backed 42 zero-emission vehicle and supply chain projects capable of benefiting commercial vehicles.
UK trade arrangements span around 100 countries and markets, while more than half of British-built commercial vehicles are exported, roughly nine in 10 of them go to Europe. This global reach gives manufacturers and suppliers an established route to growing demand.
Decarbonisation sits at the heart of this opportunity. Eighteen commercial vehicles in, or planned for, UK production are zero emission, backed by capabilities in batteries, fuel cells, semiconductors and electric drive units. With renewables generating more than 40% of UK electricity in 2025, British-built products can also offer lower embedded carbon.
In 2025, the UK was Europe’s second-largest market for vans and HGVs, at 315,422 and 40,504 units respectively, and its largest zero-emission bus market, with 2,508 registrations representing 27.1% of demand. More than 80 zero-emission van, truck and bus models are available, supported by over £1.7 billion in government incentives and infrastructure investment.
Combining industrial capability, innovation, skilled people and international partnerships, the UK is well placed to attract investment, meet rising demand and shape the future of sustainable commercial mobility.
