The Automotive Quarterly Demand Report from the Advanced Propulsion Centre UK (APC) is released today.
The report indicates that, globally, hybrid vehicles will remain strategically important into the early 2030s, particularly in cost‑sensitive regions and markets with limited charging infrastructure.
Battery electric vehicles (BEVs) are still expected to become the dominant powertrain in the second half of the decade.
Across Europe, the APC’s Quarterly Demand Report details a slightly slower BEV ramp‑up in the near term but a more ambitious long‑term electrification pathway. Conventional hybrids are expected to play a larger transitional role than previously forecast.
For the UK, vehicle production and associated battery demand remain broadly aligned with the previous quarter, with the UK forecasted to produce one million vehicles by 2035, reflecting a clear upward trajectory over the coming decade.
Dr Hadi Moztarzadeh, Head of Technology Trends, APC, said:
“Achieving the UK’s 1.3 million vehicle production target by 2035 will require an uplift of around 250 thousand units above current forecasts, effectively doubling 2025 output.
This production target unlocks enormous opportunities for growth, innovation, and scale-up across the country’s battery manufacturing, recycling, and supply-chain ecosystem, and whilst forecasts are currently under target, Gigafactory investment is strengthening, evidenced by AESC’s Sunderland expansion, anchoring domestic cell supply for the UK automotive industry.
Hybrid technology is strategically vital as it sustains consumer adoption, supports industrial competitiveness, and bridges gaps in charging and supply chains. The EU’s revised 2035 target ensures flexibility and maintains momentum toward decarbonisation. As reflected in the forecasts, some major OEMs are shifting strategies toward hybrids in the near to mid‑term due to slower‑than‑expected EV uptake and market pressures, reinforcing hybrids’ role as a critical transition pathway.”
Read the Q4 2025 Demand Report
Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
