Britain’s drive towards electrification is gaining momentum, but industry leaders warn that scaling up electric vehicle (EV) production to meet government ambitions will require fresh investment and innovation throughout the sector.
The UK has set an ambitious target to manufacture 1.3 million electric vehicles annually by 2035—a significant leap from current projections. According to the latest automotive demand forecast from the Advanced Propulsion Centre UK (APC), production is expected to reach 1 million battery electric vehicles (BEVs) per year by 2035, driven largely by new model launches from established original equipment manufacturers (OEMs). Yet, to achieve the government’s higher goal, the nation must attract new investment, encourage the introduction of additional vehicle models, and entice new manufacturers to enter the market, thereby reinvigorating the domestic automotive industry.
Globally, vehicle production is forecast to reach 100 million units by 2030, with nearly 30% being BEVs. Julian Hetherington, Automotive Transformation Director at APC, emphasised the challenges facing the UK. “Although BEV production is set to more than double between 2027 and 2035, slow consumer uptake is forcing manufacturers to rethink their strategies in the near term. Many are extending internal combustion engine (ICE) model lifecycles for certain markets and continuing to invest in hybrids (HEVs) and plug-in hybrids (PHEVs) alongside their BEV offerings,” he said. This diversification of powertrains, he explained, will add to costs and make the affordability challenge even greater for both manufacturers and consumers.
Market volatility remains another stumbling block, with uncertainties around tariffs and fluctuating demand for UK exports, particularly to the US. Furthermore, some manufacturers have yet to confirm their UK manufacturing plans, adding to the uncertainty about the country’s EV production outlook. Regardless, significant investment is being channelled into the UK’s BEV supply chain, including large-scale gigafactory projects like AESC in Sunderland and Agratas near Bridgewater, together set to provide over 55GWh of battery capacity. These developments illustrate a firm commitment to the future of the UK automotive sector.
Dr Hadi Moztarzadeh, Head of Technology Trends at APC, highlighted the scale of the challenge ahead: “To achieve the UK ambition of recovering output to 1.3 million vehicles by 2035, production levels would need to nearly double those forecast for 2025, a pivotal year for the industry’s recovery.” Moztarzadeh also hailed the government’s launch of the DRIVE35 programme as a “vote of confidence” in the sector, alongside the recently announced Scale-up fund, which promises to provide manufacturers with more coherent support as they bring innovative solutions to market.
As global competition intensifies, the UK’s automotive industry is at a crossroads. Securing its place as a leader in electric vehicle manufacturing will depend not only on continued investment and government support, but also on the sector’s ability to innovate and adapt to rapidly evolving market demands. With the right policies and commitment, industry experts believe the UK can deliver on its EV production ambitions and play a major role in shaping the future of sustainable transport.
APC.co.uk