- The UK is set to produce 1.2 million vehicles annually by 2035, with BEVs becoming the dominant vehicle type after 2027.
- Hybrid vehicles will see strong growth in the short term, while global demand for LFP batteries is expected to rise.
- Investment in battery supply chains, especially for LFP production, is crucial for the UK to remain competitive in the electric vehicle market.
APC reports steady growth in the UK’s vehicle production, with electric cars taking centre stage by 2035
The UK’s automotive industry is steadily progressing towards its 2035 goal of zero-emission vehicles (ZEVs). The Advanced Propulsion Centre (APC) reveals that while the transition to electric vehicles (EVs) is taking longer than initially expected, momentum is building.

In the short term, hybrid vehicles are projected to see increased demand, especially in Europe. This could be attributed to a lack of confidence in the current infrastructure. However, by 2027, BEVs are expected to take centre stage. The UK’s annual vehicle production is forecast to hit 1.2 million by 2035, with BEVs making up a significant share. Globally, around 105 million cars and vans will be produced annually by 2035, with nearly half being electric.
Julian Hetherington, Automotive Transformation Director at the APC, said:
“While it has been a turbulent 12 months in terms of geopolitical and economic events affecting the global automotive market, including the UK and especially our main export markets in Europe, it is reassuring to see our predicted figures for 2035 largely on track towards our prior forecast position in the Q1 demand report 2024, acknowledging some near-term reductions reflecting market conditions.
Aligned with the continuing demand for BEVs, we are also observing advances and innovations in battery chemistries, in particular the adoption of lithium-iron-phosphate (LFP) batteries, primarily driven by their cost-effectiveness and ease with which system-level safety performance can be achieved. Our forecasts indicate up to a 30 percent chemistry share for LFP across Europe, with up to a 25 percent share here in the UK by 2035. Globally, our analysis points to this being as high as nearly half of all BEVs, at a 45 percent share.
Because of this increased appetite for LFP chemistries, there is a focus within the report on the UK’s competitiveness for LFP and lithium-manganese-iron-phosphate (LFMP) cells. Understanding this pull, and the potential for LFP and LFMP, highlights the importance of investment in the battery value chain for these chemistries both now and in the future.”
With the advancements explained by Julian, EVs will soon be the standard on the roads. By the end of the decade, the UK and Europe will see an undeniable shift, with BEVs steadily replacing fossil-fuel vehicles. The momentum for electric vehicles is gaining speed, and with slowly growing confidence, the transformation is already underway.