Wales’ automotive sector contributes £477m to the UK economy and directly supports 7,000 jobs, according to new analysis published by the Society of Motor Manufacturers and Traders (SMMT).
The figures, released as industry leaders gathered in Newport for the SMMT Regional Forum Wales, underline the country’s role in the UK’s automotive manufacturing landscape. The sector accounts for around one in every 20 automotive jobs nationwide.
Senior representatives from industry, the Welsh Government and the defence sector met to discuss how closer collaboration can strengthen supply chain resilience, improve competitiveness and attract future investment amid ongoing challenges including electrification, rising energy costs, regulation and trade uncertainty.
Wales is home to a diverse automotive manufacturing base spanning vehicle production, powertrain manufacturing, semiconductors, advanced components and specialist suppliers.
Among its major manufacturing assets are Aston Martin’s Aston Martin St Athan facility, which produces the DBX SUV, Toyota UK’s Toyota Motor Corporation engine plant at Deeside, and Vishay Newport, the UK’s largest semiconductor manufacturing facility. Together with suppliers including BJ Seals, Lucas Oil Products and Senior Flexonics, they form a key part of the UK’s automotive supply chain.
Speaking at the event, Mike Hawes, chief executive of the SMMT, said: “Wales is a vital part of the UK automotive industry, and bringing Regional Forum here recognises the strength, capability and potential of the sector across the country.
“As the industry transforms, events that bring businesses and government together are crucial, helping tackle shared challenges, unlock future investment and ensure Wales – and the wider UK – remains globally competitive.”
The forum also explored opportunities for automotive suppliers arising from the UK’s recently published Defence Investment Plan, alongside strategies to accelerate investment in electrification and strengthen the resilience of domestic manufacturing.
The SMMT said Wales’ combination of vehicle manufacturing, semiconductor production and specialist engineering positions it as an important contributor to the future competitiveness of the UK’s automotive industry.
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