More than a billion pounds have been committed to Britain’s van, truck and bus manufacturing industry and supply chains over the past five years, according to new analysis by the Society of Motor Manufacturers and Traders (SMMT).
SMMT said the findings underline the sector’s growing role in the global transition to zero-emission transport, noting that more than 30 different models and conversions have already been produced or are planned for UK production, with over half zero emission – supported by a local supply chain.
Announcing the results of the research on the first day of the commercial vehicle trade show IAA Transportation Hannover, SMMT said the £1.1bn committed since 2021 builds on the UK’s diverse commercial vehicle capability, with more than 30 different models and conversions already being built or planned for production – from low-emission vehicles to electric and hydrogen options, plus thousands of advanced components.
The analysis also shows the size and breadth of the sector’s footprint which spans all UK regions and reveals that more than a third of SMMT members are active in CV production or its supply chain.
SMMT added: “The world’s confidence in the UK commercial vehicle sector and its opportunities is already evident, with businesses from more than 20 different countries – including Europe and the Middle East, the US, Japan, China and India – running manufacturing, R&D, supply or services operations in the UK.
“Global collaboration can help drive further UK growth, and new partnerships are being supported by the UK government’s £4.5bn DRIVE35 programme, with 42 zero emission vehicle (ZEV) and supply chain projects that are capable of benefitting the commercial vehicle sector receiving backing so far.
UK trade deals cover some 100 countries and markets, including the EU-UK Trade and Cooperation Agreement, recent membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and new deals with the US, India and Gulf Cooperation Council (GCC). More than half of British-built commercial vehicles are exported, with around nine in 10 going to Europe.
SMMT said the UK’s CV sector is becoming a driver of road transport decarbonisation, noting that more than half of all commercial vehicles in UK production, or planned for UK production, are ZEVs, supported by a supply chain producing batteries, hydrogen fuel cells, semiconductors, electric drive units, magnets, storage systems and more.
It added that the UK’s energy grid mix – where in 2025, more than 40% of electricity was generated from renewables – enables British-built EVs to have lower embedded carbon than those made in many other major manufacturing nations.
The domestic vehicle market offers strong growth potential, SMMT added, noting that the UK is Europe’s second largest market for both vans and HGVs at 315,422 and 40,504 units respectively in 2025.
It added that industry innovation has driven market decarbonisation, pointing to the more than 80 different zero emission van, truck and bus models available in the UK, and government incentives and infrastructure investment, which is worth more than £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.”
