Economic factors such as inflation, borrowing costs, and world trade regulations continue to play a major impact in molding the UK automotive industry. As producers endeavor to regain stability from the interruptions of the past few years, these economic variables influence production costs, pricing tactics, and overall market conditions​ (Grant Thornton)​​ (EY)​.

Rising prices and higher interest rates have a direct impact on both production and buyer spending ability. Producers are forced to discover economical manufacturing techniques, like large-scale casting, to preserve profits while ensuring competitive pricing. These economic challenges also impact automotive customer behavior, with elevated borrowing rates likely reducing interest in new cars​ (Grant Thornton)​​ (EY)​.

International trade regulations, especially those regarding tariffs on electric vehicles from non-EU countries, add another dimension of challenge. The current evaluation of government support for Chinese electric car producers and possible duty hikes could lead to market adjustments and influence pricing tactics. As the sector deals with these challenges, it remains committed to new ideas and effective processes to sustain growth and meet customer preferences​ (Grant Thornton)​​ (EY US)​.