A report released by the Society of Motor Manufacturers and Traders (SMMT) has found that the UK’s low-volume, luxury and high-performance, car makers export almost £5bn worth of cars per year.
The sector turns over £5.5bn per year, and directly employs 15,000 people in the UK, accounting for 8% of the UK’s direct automotive workforce, with a further 60,000 supported by the supply chain.
Workers in the sector earn more than the national average, with an average salary of £43,729, due to much of the workforce being highly-skilled.
By value, the low-volume car makers accounted for 12% of UK vehicle production in 2024, while only making up 4% of production volume.
The sector is also responsible for innovation, collectively investing £3.5bn into research and development since 2020.
Mike Hawes, chief executive of the SMMT, 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’.
“The 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.”
To qualify as a small volume manufacturer (SVM), companies must register fewer than 2,500 cars annually in the UK.
The sector encompasses everything from LEVC, which produces the London taxi, to globally significant luxury brands, such as Bentley and Rolls-Royce.
Supercar manufacturers such as McLaren and Aston Martin are also SVMs, as well as Gordon Murray Automotive, a start-up founded in 2017, that currently produces the £2.4m T.50 supercar.
The SMMT is calling for more flexibility in decarbonisation efforts for SVMs, due to the longer development times associated with low-volume cars.
The SMMT also believes SVMs should be a priority when engaging in global trade agreements, with 34.7% of vehicles exported by the sector in 2024 going to the US, SVMs would suffer greatly from the effects of any tariffs.
Minister for Industry 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.”
The SMMT warned that an average of 81% of the sector’s workforce will need to be upskilled by 2030, requiring efforts by automakers and government assistance.
