🎧Tough market persists but high-tech SMEs can prosper

The outlook for car manufacturing in Britain is still gloomy: 764,715 cars and vans were produced, marking the lowest annual figure since 1952, according to data from the Society of Motor Manufacturers and Traders (SMMT) in January. Exports also declined last year, mainly due to the chaos caused by higher US import tariffs and the cyber-attack at Jaguar Land Rover, which reduced UK car production by about a quarter, Reuters and others report.

There was also deep trouble in the commercial vehicle sector, where Stellantis shut its van factory in Luton. Northants-based JRM Advanced Engineering, a key supplier to JLR and Nissan, was officially placed into administration on 12th February, another blow to the industry.
But there are always silver linings, and some automotive companies are investing, adopting new production technologies like 3D printing, and expanding into new markets – even increasing exports to the US.

The third-generation Nissan LEAF, symbolising Nissan’s EV36Zero decarbonisation programme, rolled off the line in Sunderland in December. It represents a total investment of £450m by Nissan across its operations and supply chain. Nissan has transformed its site in Sunderland, enabling electric vehicle manufacturing on Production Line Two for the first time.

Engine manufacturer Cummins plans to expand its engine production plant in Darlington, establishing a new facility adjacent to its Yarm Road premises. The initiative is supported by Darlington Borough Council, which has agreed to transfer land to facilitate the project.

Leyland Trucks in Lancashire produces about 95% of all light-duty and heavy-duty trucks made in the UK. The factory can now manufacture 30 battery electric trucks daily on the same line that builds diesel trucks. This is good news, because the EU plans to cut CO2 emissions from heavy trucks and coaches by 45% by 2030, and there are also UK mandates to electrify trucks. The BEV (battery electric vehicle) trucks are thanks to ZETTA, a £5.1m project with a £2.6m government grant funded through the Advanced Propulsion Centre, and developed by a consortium of Leyland Trucks, Expert Technologies Group and HSSMI.

Sustainable manufacturing consultancy HSSMI developed a digital twin of the Leyland plant to plan the integration of equipment needed to produce BEV trucks, while Expert Technologies Group implemented solutions, including robots, to help Leyland Trucks identify and mitigate risks associated with assembling large high-voltage battery packs, ensuring workers’ safety. Led by Leyland, the project was carried out through the APC’s collaborative R&D programme, known as DRIVE35 Collaborate – an initiative where automotive suppliers can apply for funding for low-carbon technology projects.

3D printing rises above prototypes
One supplier that is rising above the automotive doldrums is RYSE 3D. Not just a 3D print bureau but a production partner for automotive OEMs, RYSE has moved beyond prototypes and has now produced 3 million automotive parts that are in use on vehicles. It has manufactured over 700 3D printed parts for the Aston Martin Valkyrie, accounting for over 30% of its bill of materials.

Eight years old with a turnover approaching £5m, RYSE also manufactures its own additive manufacturing (AM) machines – sometimes at nearly a tenth of the cost of a production AM machine. CEO Mitchell Barnes, who was the youngest person to win a Kings Award for Innovation in 2024, explains that their machines do not lock customers into contracts with proprietary materials and service agreements, as some of the larger production machines can. “I’m not interested in being part of a timeshare that your customer cannot leave,” he states. “I wanted to have the freedom to utilise materials already used in automotive and injection moulding, and to be able to print them to meet the real needs of the customer.”

RYSE exports many parts to the US. Why here? “The UK economy is pretty much tanked at the moment,” Mitchell says. “People are not investing much in assets and equipment, from what we see, and I feel there’s a complete and utter lack of bravery sometimes. The Americans still possess this.” Asked what type of car parts RYSE can manufacture, he is equally bullish. “Literally everything – think full interior substrates, rear seat covers, full HVAC systems, full brake duct kits, engine air intakes, manifolds, coolant tanks,” and the list continues. “The penny has dropped that 3D printing is not just for prototypes anymore. Hypercars and Formula 1 have shown it is viable for production, and now mainstream carmakers are using these parts in volume.”

Subbies: Check out DRIVE35
The Advanced Propulsion Centre is launching the 2026 funding round of DRIVE35, the UK’s largest automotive funding programme. It has £4bn available to distribute to companies in the automotive sector, with this round placing more emphasis on the subcontract engineering sector. There are three categories: Innovation, Scale Up, and Transformation. Scale Up focuses on manufacturing competitiveness; SMEs with improving processes that produce parts for the transition to low-carbon automotive could be eligible. For machine-based subcontractors? Yes. “In an EDU – Electric Drive Unit – there are castings, there are precision machine parts, there are pressings, and a lot of conventional manufacturing,” says APC’s Dan Bunting.

One company demonstrating that UK firms can expand in the shift to electric is Hyperbat, a battery manufacturer wholly owned by Unipart. Head of Innovation Dr Marc Henry describes their focus on end-to-end lifecycle manufacturing.