8:44 am, September 30, 2025
The UK needs to attract further investment if it is to achieve its battery electric vehicle (BEV) manufacturing target of one million vehicles per year by 2035.
That is the verdict of the Advanced Propulsion Centre (APC), which has been looking into clean fuel solutions for automotive manufacturers and suppliers.
The government-supported think tank says that 30% of cars will have BEV powertrains by 2030, and projects that one million BEVs will be manufactured per year by 2035 – but says that the UK must attract investment for both introducing new models and bringing new manufacturers into the market.
Julian Hetherington, automotive transformation director at APC, said: ‘Although BEV production is set to more than double between 2027 and 2035, slow consumer uptake is forcing manufacturers to rethink their strategies in the near term.
‘Many are extending internal combustion engine (ICE) model lifecycles for certain markets and continuing to invest in hybrids (HEVs) and plug-in hybrids (PHEVs) alongside their BEV offerings.
‘Maintaining multiple powertrain platforms will impact costs and intensify affordability challenges.
‘Trading and market conditions volatility (i.e. tariffs and market appetite) for exports to the US from the region are also a factor.
‘Some uncertainty around BEV production in the UK persists, with several manufacturers yet to confirm their local manufacturing plans.
‘However, the UK is continuing to invest in the BEV supply chain, including gigafactory projects such as AESC in Sunderland and Agratas near Bridgwater, which are planned to have a combined capacity of over 55GWh, demonstrating a commitment to the UK’s automotive industry.’
The firm’s experts said that 2025 is a ‘pivotal year’ for the industry as it looks to ramp up production levels in order to hit targets.
Dr Hadi Moztarzadeh, head of technology trends at APC, added: ‘To achieve the UK ambition of recovering output to 1.3 million vehicles by 2035, production levels would need to nearly double those forecast for 2025, a pivotal year for the industry’s recovery.
‘The launch of the government’s groundbreaking DRIVE35 programme is a vote of confidence for the UK automotive sector.
‘This commitment from the government to secure advanced manufacturing in the UK is exactly what the industry needs.
‘Innovation is key to helping the UK increase the volume of vehicles made in the UK to over 1.3 million cars and commercial vehicles by 2035.
‘The recently announced Scale-Up Fund will help manufacturers to have a more coherent support across their funding and support journey to commercialise innovative solutions in the UK.’
