Automotive apprenticeship starts are still lagging behind pre-pandemic levels despite signs of recovery in wider training activity, new data shows.
The latest Automotive Education Report from the Institute of the Motor Industry (IMI) found apprenticeship starts fell 6% year-on-year to 4,561 in the 2025/26 academic year, remaining 20 to 25% below pre-pandemic levels.
The report highlights ongoing challenges in attracting new talent into the sector, with employers continuing to play a central role in funding training.
In the first quarter of 2025/26, 45% of apprenticeship starts were levy funded, down from 52% in the previous two years and below the all-sector average of 63%.
However, overall training activity is showing signs of recovery.
Qualification certificates issued rose 12% year-on-year to 25,437 in Q3 2025, although the IMI said skills supply is still not keeping pace with demand, particularly in emerging technologies.
Growth was uneven across pathways. Autocare Technician apprenticeships increased by 8%, while vehicle damage pathways declined. Younger entrants also fell as a proportion of starters, with 63% aged under 19, down four percentage points year-on-year. The share aged 19 to 24 rose to 31%, with a small increase in those aged over 25.
Emma Carrigy, head of research and public affairs at the IMI (pictured left), said the data points to a mixed picture.
She said: “Our latest data shows a clear picture of improved employer investment in training generally, but continued barriers to apprenticeship recruitment.
“Whether that’s a lack of available funding from employers or a difficulty in attracting new talent, it is clear that more needs to be done to ensure the sector is future-proofed for new and changing technologies.”
Carrigy said smaller businesses remain critical to skills development but face structural challenges.
“Supporting more young people into skilled careers is vital for the future of the automotive sector,” she said, noting that around 90% of automotive businesses are SMEs.
She added that recent Government measures to support SME recruitment were encouraging but warned that barriers remain: “More needs to be done to remove the barriers that currently prevent many SMEs from recruiting apprentices.
“Rising employment costs and the complexity of the apprenticeship system continue to make it difficult for automotive businesses to invest in training the next generation.”
The IMI said expanding advanced training and improving awareness of automotive careers will be key to addressing long-term workforce gaps as the sector transitions to electric and connected vehicles.