Jessica BirdThe luxury, performance and specialist car manufacturing sector is playing an increasingly vital role in supporting skilled employment and workforce development, according to a new report by the Society of Motor Manufacturers and Traders (SMMT).
The low-volume vehicle sector, which includes brands such as Bentley, Rolls-Royce, Aston Martin and McLaren, directly employs 15,000 people – representing 8% of the UK’s automotive manufacturing workforce – with an additional 60,000 jobs supported through the supply chain.
These roles are often high-skilled and well-paid, with the average salary in the sector standing at £43,729, significantly above the national average.
Employment in the luxury car market makes a critical contribution to the UK economy, as the sector turns over £5.5bn annually and exports close to £5bn worth of vehicles each year, despite accounting for just 4% of total production volume.
By value, however, it represents 12% of all UK-built vehicles – underlining the specialised, high-end nature of the products and the expertise behind them.
Mike Hawes, SMMT Chief Executive, said: “Britain’s luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story, the definition of ‘Made in the UK, Sold to the World’.”
The SMMT warned that an average of 81% of the sector’s employees will need to be upskilled by 2030, as manufacturers transition to electrified and digital technologies.
The organisation called for greater Government support and flexibility in meeting decarbonisation targets, citing the longer development times for low-volume vehicles and the sector’s significant ongoing investment in R&D – £3.5bn since 2020.
The SMMT also urged policymakers to prioritise small volume manufacturers (SVMs) – which register fewer than 2,500 vehicles annually in the UK – in international trade deals.
In 2024, 34.7% of SVM exports went to the US, making the sector especially vulnerable to tariffs and regulatory changes.
Minister for Industry Sarah Jones said: “Our luxury automotive manufacturers are iconic British brands recognised worldwide, and this report rightly highlights the huge contribution they make to the UK economy.
“We’re ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we’ve already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities.”
The report highlighted the need to sustain the UK’s competitive edge in niche automotive manufacturing by investing not only in technologies but also in the skilled workforce that powers the sector’s global success.
