£1.1bn committed to UK commercial vehicle sector

More than £1.1 billion has been committed to the UK’s van, truck and bus manufacturing industry and its supply chains since 2021, according to new analysis from the Society of Motor Manufacturers and Traders (SMMT).

The investment comes as the commercial vehicle sector increases its focus on zero-emission transport, with more than 30 different vehicle models and conversions either already manufactured or planned for production in the UK.

More than half of these – 18 models – are zero-emission vehicles (ZEVs), supported by a domestic supply chain producing technologies including batteries, hydrogen fuel cells, semiconductors, electric drive units, magnets and energy storage systems.

The SMMT said commercial vehicle manufacturing and its supply chain have a presence across all UK regions, with more than a third of its members involved in the sector.

International investment is also playing a significant role, with businesses from more than 20 countries operating manufacturing, R&D, supply or service operations in the UK.

Further investment is being supported through the UK government’s £4.5 billion DRIVE35 programme. According to the SMMT, 42 ZEV and supply chain projects capable of benefiting the commercial vehicle sector have received backing so far.

The figures were released as British businesses showcase their capabilities at IAA Transportation in Hannover, one of Europe’s largest commercial vehicle industry events.

The UK commercial vehicle industry also remains heavily export focused. More than half of British-built commercial vehicles are exported, with around nine in 10 of those exports destined for European markets.

The SMMT highlighted the scale of the domestic market as another potential source of growth. The UK was Europe’s second-largest market for both vans and heavy goods vehicles in 2025, with 315,422 vans and 40,504 HGVs registered.

Britain was also Europe’s largest zero-emission bus market, recording 2,508 registrations in 2025, representing 27.1% of demand. More than 80 zero-emission van, truck and bus models are now available in the UK, while government incentives and infrastructure investment supporting fleet adoption have totalled more than £1.7 billion to date.

“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.”