UK EV Production Set to Drive Manufacturing Growth in 2026

After enduring what the Society of Motor Manufacturers and Traders (SMMT) described as the “toughest year in a generation,” UK EV production is set for a major recovery in 2026. The catalyst? A wave of new electric vehicle manufacturing that marks a turning point for the sector.

With output forecast to rise more than 10% to around 790,000 units, UK automotive manufacturing is entering a pivotal year. For businesses across the supply chain, grasping this shift is key to planning and capturing new opportunities in UK EV production.

The 2025 Reality Check: Understanding the Baseline

Before looking at the growth outlook, it helps to understand how tough 2025 was. UK factories produced just 764,715 vehicles last year: 717,371 cars and 47,344 commercial vehicles. This marked a 15.5% decline and the lowest production volume since 1952, a 73-year low.

The causes were varied. Shifts in global automotive markets, new trade barriers affecting parts flow, and a major cyber attack that halted Jaguar Land Rover production all played a role. Mike Hawes, SMMT Chief Executive, noted that these factors “combined to constrain output” throughout the year.

Yet amid the broader decline, one figure stands out: electrified vehicles made up a record 41.7% of total UK output. Some 298,813 battery electric, plug-in hybrid and hybrid cars rolled off British lines. This shows that UK EV production is gaining ground even as overall volumes fell.

Seven New EV Models: The Production Pipeline

The SMMT’s optimism for 2026 rests on real production plans, not guesswork. Seven new EV models will enter UK electric vehicle manufacturing this year. This marks the biggest expansion of domestic EV production capacity in the sector’s history.

Nissan’s Sunderland Revival

The most notable development is the next-generation Nissan Leaf. Full-scale production began in December 2025 at the Sunderland plant. This is the first high-volume EV built in the UK since 2020. The government called it “a huge boost to the UK economy and auto industry.”

The third-generation Leaf reflects Nissan’s EV36Zero vision and £1 billion of investment in Sunderland. With first customer deliveries in early 2026 and production ramping up all year, this model alone will drive much of the forecast EV growth UK-wide.

Nissan has also confirmed that the electric Juke will be built at Sunderland. Production is set for fiscal year 2026, running into calendar 2027. This means the plant will run two high-volume EV lines, cementing its role as a vital hub for UK automotive manufacturing.

JLR’s Electric Transformation

Jaguar Land Rover is undertaking its most ambitious electric vehicle manufacturing programme ever, backed by £15 billion over five years. The company is reshaping its footprint across three key sites.

The Halewood plant in Merseyside is becoming JLR’s first all-electric facility. A £500 million investment is preparing it to build the electric Range Rover Velar in spring 2026. Using the new Electric Modular Architecture (EMA) platform, Halewood can produce 500 vehicle bodies per day. This will add major capacity to UK EV production.

Solihull will produce electric versions of the Range Rover and Range Rover Sport. Meanwhile, a new £250 million Future Energy Lab at Whitley in Coventry is developing electric drive units for the entire range. JLR recently added 150 new roles to support this electric vehicle manufacturing push.

The ZEV Mandate: Regulatory Pressure Meets Production Reality

The 2026 production surge aligns with tighter rules under the Zero Emission Vehicle Mandate. For 2026, manufacturers must ensure 33% of new car sales are zero emission, up from 28% in 2025. Van targets rise to 24%.

This framework creates strong demand for UK-produced EVs. Manufacturers face fines of £15,000 per non-compliant vehicle. This makes local UK EV production more attractive than importing cars that may not meet UK specs.

Compliance pressure extends throughout the UK automotive supply chain. Parts makers that can show ZEV-compliant processes and materials traceability will be in stronger positions when bidding for OEM contracts.

Battery Production: The Somerset Gigafactory Effect

No look at UK EV production growth is complete without addressing batteries. The Tata Group’s Agratas gigafactory in Somerset marks a game-changing investment in domestic battery capacity.

Building work is on schedule at the 620-acre Gravity Smart Campus near Bridgwater. The £4 billion facility will have 40GWh of capacity, making it one of Europe’s largest battery plants. The plant is set to open in 2026, first supplying JLR and Tata Motors.

National Grid has begun work on the power link, showing the scale of energy the site will need. At peak building in 2026, some 2,000 workers will be on site. The running facility should create 4,000 skilled jobs.

For UK manufacturers, this means more than just another customer. Domestic battery output cuts supply chain risk, shortens lead times, and opens doors for local firms to enter the EV battery gigafactory materials market.

Supply Chain Opportunities: Where to Position

The UK EV production surge creates clear openings across several sectors. Firms that grasp these trends can set themselves up for growth.

Electric Drive Units and Power Electronics

Electric drive units (EDUs) offer a major chance for UK automotive manufacturing. JLR’s Future Energy Lab is developing EDUs in-house, but the wider industry needs supply chain support. UK firms like YASA (axial flux motors), Equipmake, and Helix already make high-performance electric motors here.

The Advanced Propulsion Centre sees power electronics as a priority area. Openings span inverters, on-board chargers, and DC-DC converters. Manufacturers with precision electronics skills should explore this sector.

Thermal Management Systems

Battery thermal management is critical for EV performance and lifespan. As UK EV production scales, demand for cooling systems, heat exchangers, and thermal materials will rise. Firms with fluid systems or thermal engineering expertise are well placed.

Lightweight Materials and Structures

EV weight reduction remains key to maximising range. Aluminium, composites, and advanced steels all feature in UK-produced EVs. JLR’s EMA platform blends aluminium structures with lightweight composites. Suppliers in these materials should be talking to OEM buyers now.

Testing and Validation Equipment

As electric vehicle manufacturing scales, testing equipment demand grows too. Battery cell testing, motor dynamometers, EMC testing, and vehicle validation systems are all growth areas. Precision test equipment makers should look at automotive openings.

Practical Steps for Manufacturers

Tapping into the UK EV production surge calls for active effort. These steps will help manufacturing firms position for success.

Assess Your EV Relevance

Map your current skills against EV component needs. Even if you supply traditional car parts, think about how your abilities might transfer. Precision machining, surface treatments, and assembly know-how all apply to electric vehicle manufacturing.

Engage with OEM Supplier Portals

Nissan, JLR, and other UK OEMs run supplier sign-up systems. Make sure your firm is registered and your capability profiles are current. Many RFQs go only to pre-registered suppliers.

Invest in Electrification Knowledge

Your engineering and sales teams need to understand EV-specific needs. High-voltage safety, electromagnetic compatibility, and battery chemistry basics should be part of your team’s knowledge base.

Review Your Quality Systems

Entering the UK automotive supply chain typically requires IATF 16949 certification. If you are not certified, start now. The process can take 12 to 18 months.

Consider Capacity and Location

With UK EV production centred in Sunderland, Solihull, Halewood, and Somerset, location matters. Check if your current sites can support just-in-time delivery to these hubs. Satellite facilities may be needed.

The Employment Picture

UK automotive manufacturing directly employs about 182,000 people, with 796,000 more in the wider supply chain including retail and servicing. The EV shift will reshape this workforce.

The government has pledged £2 billion for the automotive sector in Budget 2024. This includes support for zero-emission vehicle manufacturing and supply chain growth, signalling long-term backing for automotive jobs.

New roles are emerging in battery engineering, power electronics, and software. JLR’s 150 new manufacturing roles target EV production skills. Firms that invest in training now will be better placed to win contracts.

Looking Ahead: 2026 and Beyond

The 10% production growth forecast for 2026 is notable, but it is just the start of a multi-year shift. By 2030, the ZEV mandate requires 80% of new car sales to be zero emission. Sales of new petrol and diesel cars will be banned from 2035.

This path means UK EV production must keep scaling throughout the decade. Manufacturers that secure positions in EV supply chains during 2026 will gain from compounding growth as volumes rise.

The competitive scene is also changing. Over 20 new fully electric models launch in the UK market in 2026, including the BMW iX3, Volvo EX60, and Honda Super-N. While not all are UK-built, they set quality benchmarks that domestic electric vehicle manufacturing must match.

Beyond production, many UK manufacturers also face rising cost pressures from energy, labour, and materials. Balancing investment in EV capabilities with cost control will be a key challenge in 2026.

Conclusion

The UK automotive manufacturing outlook for 2026 marks a real turning point. After years of falling output and uncertainty, solid investments in UK EV production are creating real growth chances.

For manufacturing firms across the supply chain, the message is clear: the time to engage with electric vehicle manufacturing is now. Whether through direct OEM supply deals, tier-two partnerships, or investments in new capabilities, the openings are real and substantial.

Firms that position well during 2026 will build relationships and skills that serve them throughout the decade-long transition. Those that wait may find the best supply chain spots already taken.