More than a billion pounds have been committed to Britain’s van, truck and bus manufacturing industry and supply chains over the past five years, according to analysis by the Society of Motor Manufacturers and Traders (SMMT).
The £1.1 billion committed since 2021 builds on the UK’s diverse commercial vehicle capability, with more than 30 different models and conversions already being built or planned for production – from low-emission vehicles to cutting-edge electric and hydrogen options, plus thousands of advanced components.
The analysis also shows the size and breadth of the sector’s footprint spans all UK regions, making it strategically important to Britain’s regional growth agenda, with more than a third of SMMT members active in CV production or its supply chain, it added.
More than 20 different countries – including Europe and the Middle East, the US, Japan, China and India – run manufacturing, R&D, supply or services operations in the UK.
Global collaboration can help drive further UK growth, it added, and new partnerships are being supported by the UK government’s £4.5 billion DRIVE35 programme, with 42 zero emission vehicle (ZEV) and supply chain projects that are capable of benefitting the commercial vehicle sector receiving backing so far.
More than half of British-built commercial vehicles are exported, with around nine in 10 going to Europe.
The UK’s CV sector is increasingly a driver of road transport decarbonisation. More than half (18) of all commercial vehicles in or planned for UK production are ZEVs, supported by a supply chain producing batteries, hydrogen fuel cells, semiconductors, electric drive units, magnets, storage systems and more.
Meanwhile, the UK’s energy grid mix – where in 2025, more than 40% of electricity was generated from renewables – means that British-built EVs can have lower embedded carbon than those made in many other major manufacturing nations.
The domestic vehicle market offers strong growth potential, given the UK is Europe’s second largest market for both vans and HGVs at 315,422 and 40,504 units respectively in 2025.
Britain is also Europe’s biggest zero emission bus market, at 2,508 registrations last year alone, exceeding a quarter (27.1%) of all demand.
Mike Hawes, SMMT Chief Executive, said:
“The shift to zero emission road transport is creating new opportunities across the global commercial vehicle industry, from vehicle manufacturing and engineering to supply chains and advanced technologies.
“The UK’s strength lies in its combination of industrial capability, innovation, skilled people and international partnerships. With investment already flowing and demand rising for next-generation vans, trucks and buses, the sector is well placed to help shape the future of sustainable mobility.”
Image courtesy of Green Car Guide
