Britain’s luxury, high-performance and niche car makers – part of the world’s most diverse automotive sector – turn out exports worth some £5 billion every year, with around nine-in-10 vehicles produced shipped overseas, according to a new report published today by the Society of Motor Manufacturers and Traders (SMMT). The UK’s Small Volume Automotive Manufacturers: An Enduring British Success Story underlines the importance of the vast array of quintessentially British brands in this segment, including Aston Martin, Bentley, LEVC, Lotus, McLaren, Morgan, Rolls-Royce, and so many more, producing high performance supercars, luxury SUVs, electric saloons and even taxis.
Latest data shows the significant economic contribution these high value manufacturers provide to the UK, underpinning Britain’s car exports and representing 17% of their value. Together they turned over more than £5.5 billion in 2024, were responsible for 4% of total UK car production yet accounted for 12% of the value.1 They employ more than 15,000 people in high-skilled, well-paid roles with an average salary of £43,729, 18% higher than the national average.
The sector also supports some 60,000 additional jobs in its supply chain, helping these manufacturers deliver high levels of domestic content. They are also leaders in innovation, having invested some £3.5 billion into R&D since 2020, introducing technological solutions in lightweighting, hybrid powertrains and aerodynamics, some of which go on to be used across the wider automotive sector.
Like the rest of the international automotive industry, however, the UK’s small volume manufacturers (SVMs) face a series of challenges. Volatile global trading conditions, the race to decarbonise, production cost pressures and the skills transition – all threaten competitiveness and growth. SVMs also face some unique issues given their bespoke customer needs, with lower volumes and longer product development cycles meaning production costs can take longer to recoup. The sector is therefore calling for government’s forthcoming industrial and trade strategies to include measures that address these matters with specific consideration for SVMs.
Mike Hawes, SMMT Chief Executive, said, “Britain’s luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story, the definition of ‘Made in the UK, Sold to the World’.
“Government rightly recognises the importance of these high value and iconic brands to the UK economy and, amid multiple geopolitical headwinds, the industry is looking to work together to ensure the sector can not just survive but thrive. A successful sector would deliver the economic growth, well-paid jobs and exports that government craves, helping keep Britain firmly on the global automotive map.”
Foreign, Commonwealth & Development Office Minister Catherine West, said, “Britain’s luxury and niche car manufacturers support high-skilled job creation and drive innovation.
“This government is proud to champion the sector as part of our wider mission to promote British industry abroad, attract investment, and deliver on this government’s Plan for Change.”
Industry Minister Sarah Jones, said, “Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy.
“We’re ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we’ve already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities.
“Our modern Industrial Strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs and opportunities to every part of the UK.”
The UK’s Small Volume Automotive Manufacturers: An Enduring British Success Story sets out in detail the measures that government, working with industry, should introduce to support a successful sector, delivering innovation, trade and jobs, and boosting UK economic activity in every region of the country. These include:
Recognise the value of this critical sector – Given the sector’s contribution to UK advanced manufacturing, it should be a key consideration in government’s forthcoming industrial and trade strategies.
Support decarbonisation – Even with certainty on UK ZEV regulations until 2035, SVMs need flexible pathways to deliver zero emission products, recognising their unique needs.
Provide greater access to R&D funding – Grant and competition funding must be appropriately designed and accessible to SVMs. This would help attract investment and underpin massive commitments to electric powertrains and sustainable production facilities.
Deliver trade negotiations to address market access barriers – Government should reflect SVM interests in trade negotiations, focusing efforts to reduce non-tariff trade barriers, behind-the-border taxes and secure facilitations for the sector.
Enable the workforce transition – On average, four out of every five jobs will need upskilling by 2030, so the new and reformed Growth and Skills Levy must deliver its promise of 50% flexibility to support the upskilling of existing workers, as well as access to short modular courses.
The news comes as SMMT brings together senior industry leaders and MPs with a selection of the latest models from Britain’s SVMs – Aston Martin, Bentley, LEVC, Lotus, McLaren and Morgan – for a photoshoot and ministerial engagement hosted by the Foreign, Commonwealth and Development Office in London.