The UK’s commercial vehicle manufacturing sector has attracted approximately £1.1 billion in investment over the past five years, according to new analysis from the Society of Motor Manufacturers and Traders (SMMT).
The figures highlight the industry’s growing focus on electric and zero-emission vehicles, with more than half of all current or planned UK-built commercial vehicles now classified as zero-emission.
Analysis published by the industry body coincides with this week’s IAA Transportation event in Hannover, one of Europe’s biggest exhibitions for vans, trucks and buses. The figures highlight the scale of the commercial vehicle industry across the UK, as manufacturers and suppliers continue to invest in the next generation of vehicles and technologies.
According to the SMMT, approximately £1.1 billion has been invested in the UK’s van, truck and bus manufacturing sector and its associated supply chains over the past five years.
The investment reflects the changing nature of the commercial vehicle market, with manufacturers increasingly developing electric and other zero-emission vehicles alongside established petrol and diesel models as businesses consider switching to an electric vehicle.
Commercial Vehicle Manufacturing Across The UK
The UK’s commercial vehicle industry has a presence across all regions of the country, with more than 30 commercial vehicle models and conversions either currently being manufactured or scheduled for production.
The sector also has a substantial international presence. Companies from more than 20 countries have established manufacturing, research and development, supply chain or service operations in the UK.
These businesses represent a broad range of markets, including countries across Europe and the Middle East as well as the United States, Japan, China and India, reflecting the increasingly international nature of the UK automotive market.
The SMMT believes this international involvement could provide further opportunities for the UK automotive industry, particularly as manufacturers and suppliers respond to growing demand for lower-emission commercial vehicles.
Growing Focus On Zero-Emission Vehicles
Electrification is becoming an increasingly important part of UK commercial vehicle manufacturing, with electric van sales continuing to grow as manufacturers introduce more models aimed at business users.
More than half of the commercial vehicles currently being produced or planned for production in the UK are classed as zero-emission vehicles (ZEVs). The SMMT says 18 of the vehicles included within its analysis fall into this category.
This growing production base is supported by an expanding technology and component supply chain. At the same time, the wider UK market is seeing continued investment in charging infrastructure as businesses and drivers adapt to increasing numbers of electric vehicles.
UK-based businesses are involved in the production and development of technologies including batteries, hydrogen fuel cells, semiconductors, electric drive units, magnets and energy storage systems.
Government-backed investment is also helping support the development of zero-emission vehicle technology, alongside wider measures aimed at expanding the infrastructure needed to support electric vehicles.
Through the UK Government’s Drive35 programme, 42 projects involving zero-emission vehicles and their associated supply chains have so far received support, with projects capable of benefiting the commercial vehicle sector included within the programme.
Mike Hawes, chief executive of the SMMT, said the transition towards zero-emission transport could create opportunities across a wide range of areas, including vehicle production, engineering, advanced technology and supply chains.
He also highlighted the combination of existing industrial expertise, skilled workers, innovation and international investment as important strengths for the UK automotive industry.
UK-Built Commercial Vehicles Exported Around The World
The UK commercial vehicle manufacturing sector also plays an important role in international trade.
More than half of the commercial vehicles manufactured in Britain are exported, with approximately nine out of every 10 exported vehicles being destined for European markets.
This makes continued international demand particularly important for UK manufacturers, while also demonstrating the country’s role within the wider European commercial vehicle supply chain.
The shift towards electric and zero-emission production could also change the environmental profile of vehicles manufactured in Britain.
The SMMT points to the UK’s electricity generation mix as one potential advantage. In 2025, more than 40% of electricity generated in the UK came from renewable sources, which the organisation says can contribute to lower embedded carbon for electric vehicles manufactured domestically compared with production in some other major manufacturing markets.
Commercial Vehicles Continue To Evolve
The latest figures underline how significantly the commercial vehicle manufacturing sector is changing as manufacturers prepare for a market increasingly shaped by electrification, new technology and changing business requirements.
The presence of more than 30 current or planned commercial vehicle models and conversions, alongside investment in batteries, electric drivetrains and other technologies, suggests the UK remains an important part of the industry’s transition towards lower-emission transport.
The developments are also taking place against the backdrop of IAA Transportation in Hannover, where manufacturers and suppliers from the UK and around the world are showcasing their latest vans, trucks, buses and commercial vehicle technologies.
For UK businesses, the continued expansion of the commercial vehicle market means there is likely to be an increasingly broad choice of vehicles available for different applications and commercial vehicle requirements.
This growing choice also means businesses can increasingly consider different powertrains and vehicle configurations when planning their fleets, while fleets continue to transition towards electrification as manufacturers expand their electric and zero-emission line-ups.
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