UK poised to become leading zero emission manufacturing location through innovation and heritage 

The UK has the potential to capture a greater share of zero-emission and next generation automotive technology manufacturing, according to a report published by the Advanced Propulsion Centre UK (APC). 

The UK Zero Emission Vehicle Manufacturing: Competitiveness and strategic priorities for the sector report highlights significant opportunities for the UK automotive sector as the transition to zero-emission vehicles (ZEVs) reshapes global manufacturing. 

This insight report assesses the competitiveness of the UK ZEV manufacturing value chain and identifies the areas with the greatest potential to increase productivity, strengthen supply chains and drive economic growth.  

Improving competitiveness is not solely a question of developing new technologies. Proven solutions, including manufacturing execution systems, digital twins, automation, robotics and AI-enabled process optimisation, are already available. The priority is to accelerate their adoption across manufacturers and suppliers at scale. 

The analysis highlights four key findings: 

• High-value electrification technologies offer the greatest growth opportunity. Batteries, electric drive units, and power electronics 
• Productivity improvements through automation technologies are critical in labour-intensive manufacturing segments. 
• Many of the technologies needed to improve competitiveness are already available and are deployment ready. 
• Electrification creates opportunities to increase productivity and modernise manufacturing.  

Dr Hadi Moztarzadeh, Head of Technology Trends, APC, said: 

“The UK has a clear opportunity to boost the competitiveness of its automotive manufacturing sector by continued targeted investment in high-value technologies such as battery and electrified powertrain technologies. 

Our world-leading engineering expertise, established automotive manufacturing clusters, strong research and innovation base, and close collaboration between industry, government and academia provide a solid foundation for attracting investment and capturing a greater share of value from the growing ZEV market. 

While batteries, electric drive units and power electronics are critical growth areas, manufacturing competitiveness extends far beyond electrification technologies alone. A successful automotive sector depends on strong capabilities across the entire vehicle value chain. 

To maximise this opportunity, targeted action is required to strengthen high-value ZEV supply chains, accelerate automation and digitalisation, improve supply chain competitiveness, and support closer collaboration across the automotive ecosystem.” 

Read the Manufacturing Competitiveness report here.