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Driving investment in UK commercial vehicle manufacturing

29 Jan 2026

SMMT today published the full year UK commercial vehicle production figures for 2025 showing 47,344 taxis, vans, trucks, buses and coaches left factory lines last year, down -62.3% on the previous year as a result of industry restructures and the closure of two factories. Creating an environment for investment to be made in manufacturing sites is now key for a return to growth.

Government’s £4 billion DRIVE35 programme launched as part of its Modern Industrial Strategy can offer the boost needed. CV production can be an important part of the strategy’s ambitions to restore total UK automotive output to 1.3 million per year by 2035, but that depends on providing the right conditions for manufacturers to invest and build here.

It is positive to see commitments to bring down the high cost of energy, ensuring the whole sector is eligible for the British Industrial Competitiveness Scheme, as well as support for the UK supply chain. A sustainable domestic market for the vehicles being produced here is also vital, which is why SMMT is urging government to carry out a review of its ZEV mandate – including the ambitious targets set for the van sector – ensuring it aligns with real-world demand and the support needed.

UK bus manufacturing in particular was the topic of discussion at Westminster Hall with parliamentarians highlighting there are 4,100 people directly employed in building buses, and 13,000 indirectly in the wider supply chain across the whole country. It underlines the crucial economic role of CV manufacturing in Britain and, as with other sectors, our vehicle manufacturing base is already globally competitive. With the right measures, we can go even further to guarantee the UK remains a world leader in bus design and support a strong workforce. Positively, there are new opportunities for bus sector growth this year, with SMMT’s new Meet the Bus Operator set to take place at the inaugural Bus and Coach Expo on 23 April. Find out more information and register here

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