Recharging the workforce in the automotive sector

The UK automotive sector has launched a ten-point strategy aimed at restoring the country’s position among the world’s top 15 vehicle producers by 2030, with an anticipated £50bn boost to the economy over the next decade.

The UK automotive industry’s ten-point plan to rejoin the ranks of the top 15 global vehicle manufacturing nations by 2030 is a bold and exciting vision. It is one that signals restored confidence in the sector’s potential to lead in innovation, sustainability, and economic growth. With a projected £50bn boost to the UK economy over the next decade, this strategy is not just about reclaiming lost ground. It is about setting a new global benchmark for what modern, clean, and competitive manufacturing can look like.

The plan, supported by the UK Government’s Drive35 initiative and a long-term Industrial Strategy, reflects a welcome alignment between industry and the UK Government. It recognises the UK’s strengths in design, engineering, and advanced manufacturing, while also addressing the real challenges that must be overcome from energy costs to supply chain resilience.

This strategy is reinforced by insights from the Society of Motor Manufacturers and Trader’s latest report called The Competitive Edge: Driving Long-Term UK Automotive Growth, which outlines a clear path to revitalisation. Encouragingly, more than half of businesses have either secured or are planning new investments which is an indication of growing momentum. At the same time, the report doesn’t shy away from the challenges ahead, noting subdued confidence in global trading conditions and concerns around meeting net zero targets amid rising costs and pressure on profitability. These findings underscore the importance of the ten-point plan’s focus on workforce development, energy competitiveness, and long-term policy certainty.

One of the most promising aspects of the plan is the focus that will need to be applied to people. The transition to electrification and digitalisation will require a highly skilled, adaptable workforce and this presents a great opportunity for automotive employers. From an employment law perspective, the emphasis on upskilling and workforce development is not only necessary but energising. It signals a proactive shift toward equipping the UK’s automotive workforce with the skills needed to thrive in a rapidly evolving industry. This opens the door to a wide range of opportunities including new training pathways tailored to expanded apprenticeship programmes that attract and retain young talent, emerging technologies and dynamic partnerships between industry, education providers, and the UK Government that can deliver scalable, future ready solutions.

This also presents a chance to modernise employment frameworks to support lifelong learning and career mobility. Employers in this sector may need to revisit training obligations, adapt employment contracts to reflect evolving roles, and ensure compliance with equality and accessibility standards as new programmes roll out. The Industrial Strategy acknowledges that many automotive workforces consist of long-serving employees and aims to support employers in guiding their teams through industry transformation particularly the shift from internal combustion engines to electrification.

From an immigration perspective, a skills-focused strategy strengthens the case for targeted visa routes that complement domestic talent particularly in areas like battery engineering, software development, and AI-driven manufacturing. The Industry Strategy also set out that by 2028–29, an additional £1.2 billion will be invested annually in skills development, reinforcing the UK’s commitment to building a future-ready workforce. This investment will be complemented by measures outlined in the recent Immigration White Paper and statement of changes, which looks to support to the manufacturing, engineering and technology sectors within the Skilled Worker visa framework. Together, these initiatives aim to ensure that employers can access the talent they need while supporting long-term workforce growth and resilience.

Ultimately, this workforce-first approach is not just a policy lever - it’s a growth engine. By investing in people, the UK automotive sector can build resilience, unlock innovation, and create a more inclusive and competitive future. The plan sets the direction but now it’s time to accelerate.