Niche car firms boosting Britain’s exports
The UK’s luxury, high-performance, and niche car firms turn out around £5 billion annually, with close to nine-in-10 vehicles being exported, a report from the Society of Motor Manufacturers and Traders (SMMT) has found. This, it said, “underlines the importance of the vast array of quintessentially British brands in this segment, including Aston Martin, Bentley, LEVC, Lotus, McLaren, Morgan, Rolls-Royce, and so many more, producing high performance supercars, luxury SUVs, electric saloons and even taxis.”
The latest data shows the contribution these niche car firms provide to the country, underpinning Briain’s car exports and representing 17% of their value. Combined, they turned over more than £5.5 billion in 2024. They were responsible for a total of 4% of car production in the UK but accounted for 12% o the value.
More than 15,000 people, according to the SMMT, are employed by these niche car firms, with an average salary of £43,729. That’s 18% more than the national average. The supply chain for this sector supports a further 60,000 additional jobs.
The SMMT also says that these firms are “leaders in innovation” thanks to the around £3.5 billion invested into R&D since 2020, “introducing technological solutions in lightweighting, hybrid powertrains and aerodynamics, some of which go on to be used across the wider automotive sector.”
But these firms, like the entire automotive industry, face numerous challenges. Volatile globing trading conditions, the race to decarbonise, production cost pressures, and the skills transition, “all threaten competitiveness and growth,” the SMMT says. Small-volume, niche car firms face “unique issues, given their bespoke customer needs,” as lower volume and longer product development cycles mean that production costs can take longer to recoup.
The sector is calling on the government’s upcoming industrial and trade strategies to include measures that address these issues with specific consideration to small-volume car firms.
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