- Britain's car and commercial vehicle plants generate record
60.3 GWh of renewable energy, up almost a third on previous year.
- Huge industry investment to ready sector for
electricity-intensive EV transition but energy supply held back
by grid infrastructure waits averaging 14 years.
- Industry calls for urgent reform of grid connection process
to unlock green electricity supply and cut carbon emissions and
costly bills while powering up EV production.
Britain's car and commercial vehicle plants generated a record
60.3GWh of renewable electricity last year amid growing calls for
urgent energy and planning reform to ensure factories can invest
in green energy to produce the EVs the country needs to deliver
net zero ambitions.
Solar panels and wind turbines installed by vehicle manufacturers
at their production facilities generated 30.3% more electricity
last year compared with the year before. This clean, green energy
– increasingly used for producing zero emission vehicles – helped
save almost 12,500 tonnes of CO2 across the
year,1 according to the industry's 26th Sustainability Report,
published today by the Society of Motor Manufacturers and Traders
(SMMT).
Manufacturers continue to invest in more efficient production
processes, delivering a -2.4% fall in energy required to produce
a vehicle, despite declining volumes. However, with electrified
models – which require more energy to manufacture than
conventionally fuelled vehicles – accounting for more than a
third (35.4%) of UK new car production in 2024, and with new zero
emission models and gigafactories in the pipeline, overall demand
for affordable clean energy is set to grow exponentially.
Commitments to decarbonise the UK energy mix will require further
investment in renewable energy supply, and UK automotive
manufacturers have developed extensive plans to do so – but
lengthy grid connection delivery timelines, currently averaging
nearly 14 years, risk slowing down both the energy and road
transport transitions.2 Decarbonising the grid,
especially by reducing reliance on gas, can also help cut
electricity bills – currently double the European average and one
of the most significant cost disadvantages for auto manufacturers
trying to invest in new products, production lines and the
workforce.
Government has acted with its landmark Industrial Strategy,
recognising the economic importance of automotive and providing a
firm foundation to boost the sector's international
competitiveness. Indeed, rapid implementation of its reforms
could reduce electricity bills by a fifth, easing the
non-competitive costs the UK sector faces. However, the proposed
relief on standing charges, which will apply to battery
production and other energy intensive industries, should also be
afforded automotive businesses given their trade intensity and
central role in the delivery of net zero.
With cheaper energy costs and even greater grid connections to
renewables, UK Automotive can drive Britain forward faster to net
zero, providing an internationally competitive low-carbon, lower
cost manufacturing environment – helping to replace, at pace,
fossil fuel vehicles with the latest zero emission cars, vans,
trucks, taxis and buses.
Mike Hawes, SMMT Chief Executive, said,
“Britain's automotive factories are integral to the country's
decarbonisation ambitions, not just of road transport but the
UK's wider industrial base. Both will require significantly more
electricity from the grid, but with faster grid connections and
reduced energy costs the necessary investment will be unlocked.
The industry cannot afford to wait, and nor can the country if
our net zero ambitions are to be realised.”
SMMT's 2025 Sustainability Report, with signatories representing
97.8% of all Britain's vehicle manufacturing, is the latest
edition of the annual report published every year since it was
launched in 2000, providing the definitive barometer of the
industry's long-term, year-on-year commitment to improving its
environmental, social and economic performance. Last year, the
industry contributed £92 billion turnover and £25 billion value
added to the UK economy, while investing £5 billion in R&D
and supporting some 183,000 manufacturing jobs and 796,000 in
total across the wider automotive sector.
Notes to editors
1 Renewable energy generated at automotive factories totalled
4.5% of electric use by vehicle manufacturers in 2024.
2 https://www.gov.uk/government/publications/electricity-networks-transmission-acceleration-action-plan
