Wales’ automotive sector contributes almost half a billion pounds to the UK economy and directly supports 7,000 jobs, according to new analysis from the
Society of Motor Manufacturers and Traders (SMMT).
The figures were released as industry leaders, government representatives and defence sector executives gathered in Newport for the SMMT Regional Forum Wales to discuss the challenges and opportunities facing the sector.
The analysis shows Welsh automotive businesses account for around one in every 20 automotive jobs in the UK, generating £477 million in economic value while supporting skilled employment across vehicle manufacturing, powertrain production, semiconductors and advanced engineering.
The forum, held on 9 July, focused on how collaboration between industry and government can strengthen competitiveness and attract investment at a time when manufacturers are navigating the transition to electrification, regulatory change, high energy costs and uncertainty in global trade. Delegates also examined opportunities for automotive suppliers arising from the recently announced UK Defence Investment Plan.
Wales is home to a broad mix of automotive and engineering businesses that form an important part of the UK’s manufacturing landscape. Among the most prominent is
Aston Martin's St Athan facility, where the DBX luxury SUV is produced, alongside
Toyota's engine plant at Deeside, which employs around 600 people and has attracted more than £2.8 billion of investment.
The country is also a major player in semiconductor production through
Vishay Newport, the UK’s largest semiconductor manufacturing facility. Backed by £250 million of public investment, the site is expected to support more than 500 skilled jobs. Other Welsh-based supply chain companies, including BJ Seals, Lucas Oil Products and Senior Flexonics, continue to play key roles in supporting both automotive production and future vehicle technologies.
Speaking at the event, SMMT chief executive Mike Hawes 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 brought together senior representatives from Aston Martin, Tata Steel, Vishay, General Dynamics and the Welsh Government.
Representing more than 800 companies across vehicle manufacturing, the supply chain, technology and the aftermarket, the SMMT continues to support the sector through advocacy, market intelligence, trade initiatives and supplier development programmes.
Among its latest initiatives is the Supply Chain Resilience Programme, launched in 2026 to help UK suppliers respond to growing market complexity through targeted support, industry intelligence and business engagement opportunities.
The programme complements SMMT’s wider efforts to promote the UK as a leading destination for automotive investment, innovation and international collaboration.