UK Automotive Supply Chain: From Risk to Industrial Growth

Safeguarding UK automotive manufacturing and unlocking future investment

The UK automotive supply chain is vital to the country’s manufacturing competitiveness, supporting skilled jobs, innovation and economic growth.

However, rising manufacturing costs, changing production volumes and global competition are creating significant challenges for automotive suppliers.

SMMT’s latest report, From Supply Chain Risk to Industrial Growth, examines the pressures facing the UK automotive industry and identifies opportunities to strengthen domestic supply chains, improve competitiveness and unlock future investment.

Strengthening the UK automotive supply chain

The UK automotive industry relies on a complex network of manufacturers and suppliers producing the components, materials and technologies needed to build vehicles.

Maintaining a competitive domestic supply chain is essential to securing future vehicle production, attracting investment and supporting the transition to new automotive technologies.

SMMT’s research identifies £6.4 billion in potential annual sourcing expenditure by 2030 across priority automotive components, highlighting opportunities for UK suppliers to compete for future business.

However, realising this potential will require coordinated action from industry and government.

Challenges and opportunities for UK automotive manufacturing

The report explores some of the most pressing issues affecting automotive supply chain resilience and industrial growth, including:

• Manufacturing competitiveness: Addressing rising energy, employment and production costs.
• Supply chain resilience: Protecting critical UK automotive suppliers and manufacturing capabilities.
• Investment opportunities: Increasing domestic sourcing and attracting investment into UK automotive manufacturing.
• Future technologies: Supporting the development of electric vehicle components and advanced manufacturing capabilities.
• Government and industry collaboration: Creating the conditions needed to support sustainable growth.

Building a competitive future for UK automotive

The UK has the expertise, infrastructure and industrial capabilities to remain a globally competitive automotive manufacturing location.

SMMT’s report sets out recommendations to safeguard existing supply chains, improve productivity and support investment in the next generation of automotive manufacturing.