Market Overview
The UK automotive market reached a size of 1,082.9 thousand units in 2024 and is projected to grow to 1,734.9 thousand units by 2033. The market is expected to expand at a CAGR of 5.38% during the forecast period from 2025 to 2033. Growth is primarily driven by the increasing adoption of electric vehicles supported by advancements in battery technology and charging infrastructure, coupled with rising adoption of connected and autonomous vehicle technologies. For more details, visit the UK Automotive Market. 

Study Assumption Years
• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

UK Automotive Market Key Takeaways
• The UK automotive market size reached 1,082.9 thousand units in 2024
• The market is projected to grow at a CAGR of 5.38% from 2025 to 2033
• The market size is forecasted to reach 1,734.9 thousand units by 2033
• Rising adoption of electric vehicles is a key growth driver supported by advancements in battery technology and expanding charging infrastructure
• The UK government plans to ban petrol and diesel vehicle sales by 2035, accelerating electric vehicle development
• Increasing number of strategically located charging stations are enhancing accessibility and reducing range anxiety
• Connected and autonomous vehicle technologies are gaining traction, with the Automated Vehicles Act enabling self-driving cars by 2026

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Market Growth Factors
The UK automotive market increasingly drives vehicle electrification through electric vehicle adoption. Environmental concerns rise. Vehicle manufacturers invest in a wider variety of electric vehicles for sale. He explained that these technologies can range farther and charge faster for electric vehicles which attracts consumers to them. In the UK, the ban on selling new petrol and diesel vehicles (due in 2035) gives manufacturers an incentive to increase electric vehicles' range. Public charging points in malls, offices, and on roads foster daily electric vehicle usage and lessen range anxiety.

Connected and autonomous vehicle technology (CAV) innovates and invests through driving growth using connected vehicles; these vehicles allow data-driven services like real-time traffic informs and connect vehicles to everything, increasing vehicle safety and convenience too. In May 2024, the UK government acted to allow self-driving vehicles on to UK roads by 2026 through the Automated Vehicles Act. The Department for Business, Energy and Industrial Strategy estimates for the UK that it now leads the autonomous vehicle revolution and will generate a GBP 42 billion industry and 38,000 skilled jobs by 2035. It also opens up opportunities in vehicle diagnostics, telematics, and maintenance in the service market.

The United Kingdom remains one of the world's leading manufacturers of cars due to high productivity, engineering pedigree, electric vehicle infrastructure and investment and research and development. UK-built cars are sold internationally, particularly premium- and electric-vehicle models. Growing exports, innovation, international competitiveness and excellence in engine and hybrid-electric powertrains, battery electric vehicles, green manufacturing and vehicle lifecycle are contributing factors. Abundant supply of used vehicles through customary retail and growing online commerce, the age and longevity of the vehicle fleet, for price-sensitive consumers and the aftermarket for parts and services are also contributing factors.

Market Segmentation

Type
• Passenger Vehicles: Key segment driving demand, supported by rising EV adoption
• Commercial Vehicles: Significant for goods transport and logistics across the UK
• Two Wheelers: Includes motorcycles and scooters contributing to urban mobility

Propulsion Type
• Gasoline: Traditional internal combustion engine vehicles
• Diesel: Common in commercial vehicles with established infrastructure
• Electric: Fast-growing segment fueled by government policies and technology
• Others: Includes alternative propulsion technologies

Sales Channel
• Dealerships: Primary retail channel for new vehicles
• Online Sales: Growing digital sales platforms for vehicle transactions
• Direct Sales: Manufacturer-to-consumer sales gaining traction
• Others: Includes various other smaller sales channels

Regional Insights
London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and other regions are key markets. While the report does not specify dominant regional statistics, widespread adoption of new technologies and infrastructure development across these regions support overall market growth.

Recent Developments and News
In July 2025, Hyundai Motor UK revamped its Hyundai Business website to better support company car drivers and SMEs transitioning to electric vehicles, introducing tailored navigation and a Virtual Account Manager.
In March 2025, BMW Group UK won Fleet Manufacturer of the Year for the seventh consecutive year, with the all-electric BMW i5 receiving the Best Premium Electric Car award. MINI’s Countryman was named Medium Crossover of the Year.
In September 2024, Chinese automaker Chery considered establishing a design or R and D center in the UK to leverage local expertise.
In May 2024, Wayve secured a USD 1.05 billion investment to develop AI-powered self-driving vehicles, backed by SoftBank, NVIDIA, and Microsoft.

Key Players
• Hyundai Motor UK
• BMW Group UK
• MINI
• Chery
• Wayve

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