SMMT Update – How auto investment is driving new skills and vehicle markets
The used car market is a crucial economic driver, providing affordable motoring for consumers and growth for industry – so new SMMT data published this week bodes well, with sales continuing their post-pandemic recovery in 2025. The figures also show a record number of EVs changing hands, up by almost half to account for almost one in 10 transactions. It reflects a maturing new EV market, driven by huge industry investment, and one that must grow further to sustain the levels of fleet renewal needed to deliver ambitious decarbonisation targets.
Fleet decarbonisation ultimately relies on healthy markets and robust consumer demand, but it all begins with the people who design, engineer, build and sell the vehicles – and the skills they need to do so are transforming rapidly. As the industry continues its shift to next generation zero emission and automated technologies, transitioning the workforce is a strategic priority. A new SMMT survey this week revealed that automotive companies expect almost two thirds of roles will need new skills within the next 10 years, from battery management and high voltage system capability to data coding and AI. And the industry is investing to develop them. While other sectors might be scaling back, automotive is bucking that trend with a 33% rise in apprenticeships last year.
We were proud to champion this investment – and the industry’s next generation of automotive leaders – at our annual Apprentice Showcase event at the House of Lords on Monday. We’re grateful to Lord Fox for hosting us, and to Chris McDonald MP, Minister for Industry, who met some of the industry’s brightest young talent in a remarkable demonstration of the commitment the sector has to its own future.
Like every vehicle sector, the new bus market is decarbonising but faces its own unique challenges that require major investment. To support this, SMMT, in partnership with the Bus Centre of Excellence, is launching a new event dedicated to unlocking sector investment. Taking place at April’s Commercial Vehicle Show, Meet the Bus Operator will connect more than 30 local transport authorities and operators in one-to-one meetings with suppliers that can facilitate their shift to zero emission bus services.
The entire zero emission bus ecosystem will be represented, from from vehicle and component manufacturers to retrofitting and depot infrastructure specialists, as well as energy providers and finance companies. It is a significant growth area for the bus sector so registrations are encouraged, and open here until Friday 20 February.