Columnist

A year of resilience, growth and collaboration

As 2025 draws to a close, it’s clear this has been a year of both challenge and opportunity for the automotive sector. 

Global headwinds, from supply chain disruption to economic uncertainty, have coincided with one of the most significant transitions in the industry’s history: the shift to zero-emission vehicles. 

Despite more than £4 billion in incentives, the UK fell short of its mandate target for 2024, underlining the scale of the challenge ahead. 

Consumer confidence in electric vehicles remains low, and adoption is moving at a slower pace than the market demands.

Yet optimism remains.

Battery production and new model launches promise more than £2 billion of growth and thousands of new jobs in the North East over the next five years. 

The Nissan Qashqai and Juke remain firm favourites with the British public, and are in the top five selling models in the UK, while the all-new Leaf – which starts production at the Sunderland plant this month – has already received rave reviews. 

Government support for the UK automotive sector remains strong, with initiatives such as the long-term industrial strategy, the Advanced Manufacturing Sector Plan and DRIVE35 demonstrating a clear commitment to future growth. 

Regionally, the North East Combined Authority has already backed the sector through the £14.67 million Made NE investment, ensuring the automotive sector features prominently within the Local Growth Plan.

The North East Automotive Alliance continues to act as a powerful voice for the region’s automotive industry, championing members’ interests at regional, national and international levels. 

As the sector evolves, the North East Automotive Alliance remains committed to ensuring its members are represented and supported in shaping the future of automotive manufacturing and innovation.

Driving skills

This year, the North East Automotive Alliance continued delivery of the North East Local Skills Improvement Plan (NELSIP), ensuring the region has the talent pipeline to meet future demand.

In August, the North East Automotive Alliance was reappointed as the designated employer representative body for the NELSIP from 2026 to 2029. 

The plan has now been expanded to integrate the current North of Tyne LSIP and NELSIP area, covering the entire North East Combined Authority region. 

This alignment will ensure local skills provision reflects employer needs and emerging opportunities across important sectors.

Future growth and competitiveness 

In 2026, the North East Automotive Alliance will continue to champion regional competitiveness, ensuring the North East remains a powerhouse for the global automotive sector. 

To achieve this, we will focus on two key initiatives:

• Working cohesively with members and stakeholders to support initiatives aimed at streamlining processes, accelerating innovation and optimising cost efficiency
• Working with organisations such as the Welsh Automotive Forum, the Northern Automotive Alliance and other sector cluster groups to support diversification and open doors to new markets

While 2025 has tested the automotive sector’s resilience, it has also highlighted the strength of the North East community. 

Through collaboration, innovation and a shared commitment to growth, it is hoped the North East automotive sector is well positioned to thrive in the years ahead.

Paul Butler is chief executive of the North East Automotive Alliance

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →