Britain’s automotive industry is calling on the new Labour government to leverage the sector’s decarbonisation achievements to boost the UK economy. According to the latest report from the Society of Motor Manufacturers and Traders (SMMT), direct carbon emissions from vehicle factories have been halved over the past 25 years, positioning the UK as a prime location for producing next-generation zero-emission vehicles (ZEVs).
The 25th SMMT Sustainability Report reveals a 54% reduction in CO2 emissions from vehicle production since 1999, thanks to significant industry investments. Additionally, energy and water consumption per vehicle dropped by 18% and 17.7%, respectively, last year, now standing 33% and 42% below 1999 levels. The production of electrified vehicles hit a record high in 2023, with a 48% increase in output.
Independent analysis indicates that with appropriate investment conditions, the UK could produce over a million ZEVs annually by 2035, driving substantial economic growth through exports. The SMMT report emphasizes the potential for green growth, suggesting that collaboration is essential to making the UK more competitive globally and attracting investments in both vehicle manufacturing and related sectors.
Key areas for investment include sustainable and affordable energy, free and fair trade agreements to promote UK-made products, and a robust domestic market for ZEVs. Additionally, developing a skilled workforce to design, build, and maintain ZEVs is critical for a successful transition.
Mike Hawes, SMMT chief executive, stated, “Britain’s automotive sector has been cutting carbon for decades and this new milestone is significant, not just for industry but for the nation’s move to net zero. We look forward to working with the new government to deliver its green growth agenda that puts Britain at the front of the queue for global investment and sustainability leadership.”
The automotive industry is a cornerstone of the UK economy, contributing £93 billion through manufacturing and £22 billion in value added, with £4 billion annually invested in research and development. The sector includes over 25 manufacturers producing more than 70 vehicle models, supported by approximately 2,500 supply chain businesses.
The industry’s employment impact is substantial, with over 198,000 direct manufacturing jobs and a total of 813,000 jobs across the automotive sector. Many of these positions are located outside London and the Southeast, offering wages about 13% higher than the UK average. The industry also supports jobs in critical sectors such as steel, chemicals, plastics, rubber, advertising, finance, and logistics.
SMMT’s Strategy for a Competitive and Sustainable UK Automotive Industry:
Publishing a Green Automotive Transformation Strategy: Outlining a comprehensive approach towards achieving sustainability and circularity goals for the UK automotive industry.
Introducing Fiscal, Tax, and Regulatory Support Measures: Attracting new investments and ensuring global competitiveness for domestic vehicle producers.
Supporting a Sustainable UK Supply Chain: Providing guidance and support to foster a transparent and sustainable supply chain.
Empowering a Skilled, Diverse Workforce: Mobilizing and empowering the UK workforce to meet the needs of the evolving automotive sector.
Developing a UK Regulatory Ecosystem: Creating an ambitious, deliverable regulatory framework aligned with global standards and sustainability objectives.
Ensuring Access to Critical Raw Materials and Trade: Supporting cross-border trade and building supply chain resilience to attract investment in ZEV and sustainability technologies.
With these measures, the SMMT aims to position the UK automotive sector as a leader in global sustainability while driving economic growth, improving air quality, and creating jobs and skills nationwide.