2 min read - 15 Sep, 2026
UK commercial vehicle manufacturing attracts £1.1bn investment in five years
More than one billion pounds has been committed to Britain’s van, truck and bus manufacturing industry and its supply chains over the past five years, according to new analysis by the Society of Motor Manufacturers and Traders (SMMT).
The £1.1bn invested since 2021 is supporting the development and production of more than 30 different models and conversions – from low-emission vehicles to cutting-edge electric and hydrogen options, plus thousands of advanced components. The analysis also highlights the breadth of the sector’s footprint across 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.
Global confidence in the UK commercial vehicle sector is already evident, with businesses from more than 20 countries and regions – including the US, Japan, China, India, Europe, and the Middle East – running manufacturing, R&D, supply, or service operations in the UK.
International collaboration is driving further UK growth, with new partnerships supported by the UK government’s £4.5bn DRIVE35 programme. Already, 42 zero-emission vehicle (ZEV) and supply chain projects capable of benefitting the commercial vehicle sector have received backing.
Since 2021, Britain’s van, truck and bus manufacturing sector has attracted £1.1bn in private investment, supporting research, development and production / Picture: Stellantis
Furthermore, UK trade deals cover some 100 countries and markets, including the EU-UK Trade and Cooperation Agreement, membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and expanding trade relationships with the US, India and the Gulf Cooperation Council (GCC). This access is vital given that more than half of British-built commercial vehicles are exported, with around nine in ten heading to Europe.
Consequently, the UK’s CV sector is increasingly a driver of road transport decarbonisation. More than half 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, and storage systems. Meanwhile, the UK’s energy grid mix – where more than 40% of electricity was generated from renewables in 2025 – means British-built EVs carry lower embedded carbon than those manufactured in many other major manufacturing nations.
Crucially, the domestic vehicle market offers strong growth potential. The UK remains Europe’s second-largest market for both vans and HGVs (at 315,422 and 40,504 units respectively in 2025) and Europe’s largest zero-emission bus market, recording 2,508 registrations last year alone (27.1% of total demand). Industry innovation has driven market decarbonisation, with more than 80 zero-emission van, truck and bus models now available in the UK, with fleet uptake also supported by government incentives and infrastructure investment exceeding £1.7bn to date.
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.”
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