Automotive industry in the United Kingdom
The automotive industry in the United Kingdom is now best known for premium and sports car marques including: Aston Martin, McLaren, Bentley, Rolls-Royce, Jaguar, Land Rover, Mini and Lotus. Specialised sports car companies include: Ariel, BAC, Morgan, Caterham, AC Cars, Gordan Murray, TVR, Noble, Radical, Ginetta, Ultima Sports, Westfield, Lister, Arash and David Brown. Volume car manufacturers in the UK include Nissan, Toyota and MINI. British commercial vehicle brands active in the UK include Alexander Dennis, Dennis Eagle, IBC Vehicles, Leyland Trucks, TEVVA and the London Electric Vehicle Company.
In 2024 the UK automotive manufacturing sector had a turnover of £92 billion, generated £25 billion in value to the UK economy and produced around 779,584 passenger vehicles and 125,649 commercial vehicles. In that year around 183,000 people were directly employed in automotive manufacturing in the UK, with a further 796,000 people employed in automotive supply, retail and servicing.
The UK has been a major centre for engine manufacturing, and in 2024 around 1.58 million engines were produced in the country, though the sector has been declining in the recent decades. The UK has a significant presence in auto racing and the UK motorsport industry currently employs around 38,500 people, comprises around 4,500 companies and has an annual turnover of around £6 billion. The overwhelming majority of new cars sold in the UK are manufactured abroad; the majority are manufactured in Europe, while smaller shares are manufactured in Japan, China and South Korea.
The origins of the UK automotive industry date back to the final years of the 19th century. By the 1950s, the UK was the second-largest manufacturer of cars in the world, and the largest exporter. However, in subsequent decades the industry experienced considerably lower growth than competitor nations such as France, Germany and Japan, and by 2008 the UK was the 12th-largest producer of cars measured by volume. Since the early 1990s, many British car marques have been invested in by international companies including BMW, Tata and Volkswagen Group.
Famous and iconic British cars include the Aston Martin DB5, Aston Martin V8 Vantage, Bentley 4½ Litre, Jaguar E-Type, Land Rover Defender, Lotus Esprit, McLaren F1, MGB, original two-door Mini, Range Rover, Rolls-Royce Phantom III and Rover P5. Notable British car designers include David Bache, Dick Burzi, Laurence Pomeroy, John Polwhele Blatchley, Ian Callum, Colin Chapman, Alec Issigonis, Charles Spencer King and Gordon Murray.
History
1880 to 1900
The inception of the British motor industry can be traced back to the mid-1880s when there were several key developments. One development was when Frederick Simms, a London-based consulting engineer, became friends with Gottlieb Daimler, who had, in 1885, patented a successful design for a high-speed petrol engine. Simms acquired the British rights to Daimler's engine and associated patents and from 1891 successfully sold launches using these Cannstatt-made motors from Eel Pie Island in the Thames. In 1893 he formed The Daimler Motor Syndicate Limited for his various Daimler-related enterprises.In June 1895, Simms and his friend Evelyn Ellis promoted motor cars in the United Kingdom. Ellis had a left-hand-drive Daimler-engined Panhard & Levassor made for him and had it shipped to Southampton. It was transported by rail to Micheldever and he drove it 56 miles to his home in Datchet in July 1895. The police did not trouble him, just as they did not trouble other early motorists who were members of the aristocracy or the political class.
Simms' documented plans to manufacture Daimler motors and Daimler Motor Carriages were taken over, together with his company and its Daimler licences, by London company-promoter H J Lawson. Lawson contracted to buy The Daimler Motor Syndicate Limited and all its rights and on 14 January 1896 formed and in February successfully floated in London The Daimler Motor Company Limited. It then purchased from a friend of Lawson a disused cotton mill in Coventry for car engine and chassis manufacture where, it is claimed, the UK's first serial production car was made.
George Lanchester produced one of the first British cars between 1895 and 1896 having a single-cylinder 1306cc engine, he went on to sell the first car with disc brakes. In 1891 Richard Stephens, a mining engineer from South Wales, returned from a commission in Michigan to establish a bicycle works in Clevedon, Somerset. Whilst in the United States, he had seen the developments in motive power and by 1897 he had produced his first car. This was entirely of his own design and manufacture, including the two-cylinder engine, apart from the wheels which he bought from Starley in Coventry. This was probably the first all-British car and Stephens set up a production line, manufacturing in all, twelve vehicles, including four- and six-seater cars and hackneys, and nine-seater buses.
Early motor vehicle development in the UK had been effectively stopped by a series of Locomotive Acts introduced during the 19th century which severely restricted the use of mechanically propelled vehicles on the public highways. Following intense advocacy by motor vehicle enthusiasts, including Harry J. Lawson of Daimler, the worst restrictions of these acts,, was lifted by the Locomotives on Highways Act 1896. Under this regulation, light locomotives were exempt from the previous restrictions, and a higher speed limit – was set for them. To celebrate the new freedoms Lawson organised the Emancipation Run held on 14 November 1896, the day the new Act came into force. This occasion has been commemorated since 1927 by the annual London to Brighton Veteran Car Run.
1900 to 1939
The early British vehicles of the late-nineteenth century relied mainly upon developments from Germany and France. By 1900 however, the first all-British 4-wheel car had been designed and built by Herbert Austin as manager of The Wolseley Sheep Shearing Machine Company. In 1901, backed by brothers 'Colonel Tom' and Albert Vickers , Austin started what became Wolseley Motors in Birmingham and was the UK's largest car manufacturer until Ford overtook them in 1913.The great bulk of the pioneering car producers, many of them from the bicycle industry, got off to a shaky start. Of the 200 British makes of car that had been launched up until 1913, only about 100 of the firms were still in existence. In 1910, UK vehicle production was 14,000 units. By 1913, Henry Ford had built a new factory in Manchester and was the leading UK carmaker, building 7,310 cars that year, followed by Wolseley at 3,000, Humber at 2,500, Rover at 1,800 and Sunbeam at 1,700, with the plethora of smaller producers bringing the 1913 total up to about 16,000 vehicles. Car production virtually came to an end during the war years 1914–1918, although the requirements of war production led to the development of new mass-production techniques in the motor industry.
By 1922, there were 183 motor companies in the UK, and by 1929, following the slump years, there were 58 companies remaining. In 1929, production was dominated by Morris and Austin which between them produced around 60% of total UK output. Singer followed in third place that year with 15% of production.
In 1932, the UK overtook France to become Europe's largest car producer. In 1937, the UK produced 379,310 passenger cars and 113,946 commercial vehicles. To celebrate the granting of his peerage, William Morris upon becoming Viscount Nuffield, reorganised his motor vehicle companies in 1938, which by then included not only Morris Motors and MG, but also Wolseley and Riley, into the Nuffield Organization. In 1939, the top producers were Morris: 27%, Austin: 24%, Ford: 15%, Standard : 13%, Rootes : 11%, Vauxhall : 10%.
1939 to 1955
During the Second World War, car production in the UK gave way to commercial and military vehicle production, and many motor vehicle plants were converted to aircraft and aero engine production. Following the war, the UK Government had nationalised the steel industry; where priority was given to supplying foreign-revenue-raising export businesses. In 1947, steel was available only to businesses which exported at least 75% of their production. This, coupled with the inevitably limited competition from continental Europe, and with demand for new vehicles in America and in Australia being greater than the American industry alone could supply, resulted in British vehicle exports reaching record levels and the UK became the world's largest motor vehicle exporter. In 1937, the UK provided 15% of world vehicle exports. By 1950, a year in which 75% of British car production and 60% of its commercial vehicle production was exported, the UK provided 52% of the world's exported vehicles.This situation remained until the mid-1950s, by which time the American industry production had caught up with American demand, and European production was recovering. By 1952, the American-owned producers in the UK had between them a 29% share of the British market, which exceeded the share of either of the UK's two top domestically owned manufacturers. It was in that context that Viscount Nuffield agreed to the merger of his company, the Nuffield Organization, with Austin, to form the British Motor Corporation. Thus BMC, comprising Austin, Morris, MG, Riley and Wolseley was formed in 1952 and commanded a 40% share of the British market. German production was increasing yearly, and by 1953 it had exceeded that of France, and by 1956 it had overtaken that of the UK.
1955 to 1968
By 1955 five companies produced 90% of the UK's motor vehicle output: BMC, Ford, Rootes, Standard-Triumph and Vauxhall. Of the dozen or so smaller producers Rover and Jaguar were strong niche producers. By 1960 the UK had dropped from being the world's second largest motor vehicle producer into third place. Labour-intensive methods, and wide model ranges hindered opportunities to reduce manufacturing costs – the UK's unit costs were higher than those of their major Japanese, European and American competitors. Although rationalisation of motor vehicle companies had started, full integration did not occur. BMC continued to produce vehicles under the marque names of its incorporated companies, many of which competed with each other. Standard-Triumph's attempts to reduce costs by embracing a modern volume production strategy almost led to their bankruptcy in 1960, the result was that they were purchased by the commercial vehicle manufacturing company Leyland Motors. In 1966, BMC and Jaguar came together, to form British Motor Holdings. Leyland had achieved some sales success with Leyland-Triumph and in 1967 it acquired Rover. By 1966 the UK had slipped to become the world's fourth largest motor vehicle producer. Following a gradual process which had begun in 1964, Chrysler UK had fully acquired Rootes by 1967.In the context of BMC's wide, complex, and expensive-to-produce model range, Ford's conventionally designed Cortina challenging for the number one spot in the domestic market, and the heavy reliance of the British economy on motor vehicle production, in 1968 the Government brokered the merger of the successful Leyland-Triumph-Rover and the struggling BMH, to form Europe's fourth-largest car maker, the British Leyland Motor Corporation. The new company announced its intention to invest in a new volume car range, and to equip its factories with the latest capital-intensive production methods.
BMC's Mini, designed by Alec Issigonis, had revolutionized the small car market in 1959, and the car remained among the UK's best selling cars for more than 20 years after its launch, the last version finally rolling off the production line on 4 October 2000 after a run of 41 years. The Rootes Group launched the similar-sized Hillman Imp four years later, but by the end of the 1960s Ford and Vauxhall had yet to launch a comparable product, and even with foreign imports slowly starting to gain ground on the British market, Italy's Fiat 500 was one of the few comparable alternatives to the virtual monopoly of the Mini and Hillman Imp in this sector of the market.
Also designed by Alec Issigonis was the Morris Minor, which was heavily updated in 1956 having originally gone into production in 1948. It earned a reputation for low running costs, good reliability and competitive pricing, and continued to sell well throughout the 1960s in spite of the popularity of BMC's 1100/1300 range which was launched in 1962, The Morris Minor was also the first British car to reach one million in production in 1961 with this record number reached a special model of the Morris Minor was created and sent to all of the main dealerships under the name "Morris Million".
Ford's competitor in this sector was the Anglia, which featured unconventional styling but was still one of the country's most successful cars from its launch in 1959 up to the end of production in 1967, after which it was replaced by the Escort. Other British competitors in this sector were the Vauxhall Viva and Hillman Minx.
Larger family cars enjoyed strong sales in the 1960s, namely the Ford Cortina, Austin/Morris 1800 and Vauxhall Victor. Later in the 1960s, the Rootes Group launched a new competitor in this growing sector of the market - the Hillman Hunter.
The Rover P6, launched in 1963 and the first winner of the European Car of the Year award, was arguably the most popular luxury model in the UK during the 1960s.
The iconic Jaguar E-Type sports car, designed by Malcolm Sayer, with a top speed of and the choice of a coupe or roadster bodystyle, was launched in 1961 and would remain in production until 1975. Cheaper sports cars also enjoyed strong sales during the 1960s, including the MG B and Triumph Spitfire which were launched in the early part of the decade, and the Ford Capri which was launched just before the decade's end.
The 1960s saw a slow but sure increase in the popularity of foreign cars on the British market. Volkswagen of West Germany had imported the iconic Beetle to Britain since 1953; this car was first launched in 1937 as a "people's car" for the German market under the Nazi regime. Its arrival on the UK market less than a decade after the end of World War II was met with hostility, with many examples being vandalised soon after being distributed, but it quickly became popular, with nearly 10,000 being sold in 1959. Volkswagen also began importing examples of its people carrier and van models, and by 1963 had sold 100,000 cars in Britain. Renault of France had actually built UK market versions of its cars at a site in Acton, West London, from 1902 until 1962, but its popularity actually increased after the end of UK production, helped by the arrival of the Renault 4 minicar in 1961 and the world's first production hatchback model, the Renault 16, in 1965. By the end of the decade, it had launched a smaller hatchback model, the Renault 6, and a mid-range saloon, the Renault 12, and was continuing to grow in popularity. Renault's French rival Peugeot also enjoyed success in the 1960s with its 404 saloon and even more so with its successor, the 504, which was launched in 1968. This set the scene for even more sales for foreign carmakers on the UK market during the next two decades, as their market share continued to grow.
Japanese cars also started to appear on the UK market during the 1960s, although they were a rare on British roads until exploding in popularity during the early 1970s. The Daihatsu Compagno was the first Japanese car to be sold in Britain when imports began during 1964. This car was not popular with British buyers and was withdrawn from sale within a few years, although Daihatsu would return to the UK market in the early 1980s. A year later, Toyota became the second Japanese carmaker to import cars to Britain. It was followed shortly afterwards by Nissan and Mazda. Honda was also enjoying great success on the motorcycle market by this stage, although it didn't start importing passenger cars to the UK until 1972.