Nationwide Vehicle Contracts predicts key auto industry disruptors

A NEW report from Nationwide Vehicle Contracts has predicted the key disruptors within the automotive industry that we can expect from 2025 onwards.

Key findings:

The UK automotive sector is now worth an estimated £100 billion, fuelled by a 6.4% increase in new car sales during Q1 2025 compared to Q1 2024
Chinese competition is forecast to be one of the greatest disruptors to the global auto industry over the next two decades, as production and exports accelerate
The average electric vehicle (EV) now costs over £54,000, raising affordability concerns and casting doubt on the UK’s target to fully phase out petrol and diesel cars by 2035

Chinese competition gathers pace as UK new car sales jump 6.4% in Q1

The UK automotive sector is now valued at over £100 billion, according to the Society of Motor Manufacturers and Traders (SMMT), fuelled by a 6.4% increase in new car sales during Q1 2025 compared to the same period last year.

But this growth comes amid rising international pressure, most notably from China, which now produces 31% of the world’s vehicles (Statista), nearly twice the combined output of the entire EU. As a surge of new electric vehicle (EV) brands prepares to enter the UK and European markets, the industry stands on the brink of major transformation.

In its “Future of the Auto Industry Report 2025” our three-times Volume Broker of The Year, has unveiled its revealing a transformative future for the automotive landscape as consumer trends, global competition, and emerging technologies collide.

Keith Hawes, Director at Nationwide Vehicle Contracts, gives his expert analysis on the key trends and developments expected to shape the industry from 2025 and beyond.

What could be the biggest disruptors to the automotive industry over the next 20 years?

As of 2025, over 200 car brands are now being manufactured in China, many of which remain largely unknown to global consumers. But that’s about to change. With a focus on electric vehicles (EVs), Chinese carmakers are rapidly expanding their international footprint, and the UK is poised to feel the impact.

Keith Hawes comments: “In the UK, we are already seeing significant growth from brands like MG, ORA, BYD, and Omoda, with more Chinese manufacturers expected to enter the market in the coming year.

Other highly populated countries, such as Japan, Mexico, and South Korea, are expected to follow a similar path alongside more established markets like Canada, Germany, and France. With rapidly growing economies and increasing personal wealth, countries such as Vietnam and Indonesia will present significant opportunities.”

Still, the challenge for established European and North American carmakers is clear. He warns that they “Need to up their game in shared technology, platforms and manufacturing efficiency, particularly in the production of next-generation EVs.”

EVs are evolving, but how can the industry keep up?

Electric vehicles (EVs) are no longer a glimpse of the future – they’re here, and they’re rapidly becoming the norm. With the UK set to ban the sale of new petrol and diesel cars by 2035, the automotive industry is undergoing a huge transformation. One of the biggest areas of change is battery production, as the demand for electric vehicles continues to rise.

Most EVs on the road today rely on lithium-ion batteries, and production is scaling up fast to meet growing demand. But as more of us make the switch to electric, the changes go far beyond the vehicles themselves.

Hawes adds: “In the longer term, the traditional automotive network will inevitably need to evolve. Key factors driving this change include lower maintenance requirements for EVs, reduced demand for replacement parts and the elimination of consumables like oil and other sundries. As a result, businesses built around servicing and maintaining internal combustion engine (ICE) vehicles will need to adapt to remain viable.”

The evolution of EVs is not just about new technologies – it’s about rethinking entire business models, supply chains, and infrastructure. The road ahead presents challenges, but also significant opportunities for innovation, investment, and long-term sustainability.

To read the Nationwide report click here.