Automotive employers investing more than other sectors in apprenticeships

IMI Automotive Education Report shows lower use of apprenticeship levy than other sectors is putting financial pressure on employers

The Automotive Education Report from the Institute of the Motor Industry (IMI) for Q3 of the 2025/26 academic year shows a 1% drop, year-on-year, in automotive apprenticeship starts and the industry trailing other sectors as the wider apprenticeship market grew by 8%. Critically, use of levy funding by larger employers is at 52% and 15% below the all-sector average of 67%. This means nearly half of automotive employers are self-funding apprenticeships at a time when financial pressures are increasing.

The new report also shows a decline in the youngest age group taking up automotive apprenticeships. Whilst still accounting for the largest proportion of apprenticeship starts, the number of under 19s entering the workforce has fallen 5.2% year-on-year.

Emma Carrigy, Head of Research and Public Affairs at the IMI commented: 

“Our latest data shows that automotive employers remain committed to apprenticeship recruitment. However, with the sector largely populated by small businesses, the decline in automotive apprenticeship starts compared to growth across the market as a whole, points to the current system being difficult to navigate and access. There is no question that there is the demand for talent – vacancies are currently around 15,000. It is critical, therefore, that the apprenticeship reforms currently being finalised make the system simpler and more accessible to small employers.

“The decline in under 19s entering the workforce is also a concern. Hopefully this can be turned around as the government puts more focus on technical education in the school curriculum. It is vital that the sector has a strong talent pipeline as new and changing technologies become ever-more present, offering a huge range of exciting and diverse career opportunities.”

Key figures for Q3 2025/26

•    Apprenticeship starts fell 1% year-on-year, to 7,424 
•    Levy-funded starts fell by 5% year on year
•    Starts recorded under other funding arrangements increased by 4%
•    57% of automotive apprenticeship starters were aged under 19
•    The proportion aged 19 to 24 rose by two percentage points to 35%
•    The share aged 25 and over rose by one percentage point to 7%
•    Light Vehicle, Autocare and Heavy Vehicle now account for 81% of starts (up from 75%)
•    Heavy Vehicle starts jumped 35% to a series high of 1,379

The growing level of technical competence required in the sector is reflected in the fact that in the first three quarters of 2025/26, 71% of automotive apprenticeship starts were at advanced level, compared with 42% across all sectors. Automotive continues to rely heavily on Level 3 as its main apprenticeship route.

Beyond apprenticeships, the IMI report shows that investment in automotive training also appears to have been hit by financial pressures. For Q4 2025 automotive certification activity decreased by 67% quarter-on-quarter. However, this is likely to be influenced by seasonal and cyclical trends.

The IMI Automotive Education Report explores trends in automotive qualifications and apprenticeships across England, Scotland, Wales and Northern Ireland. It draws on the latest available data, including apprenticeship statistics for England from the Department for Education (DfE).

The IMI Automotive Education Report can be downloaded here.