Britain's automotive sector is today urging the new Labour
government to use the industry's decarbonisation success to the
UK's economic advantage, as a new report shows direct carbon
emissions from vehicle factories halved over the past 25 years –
helping position the country as the ideal place to produce
the next generation of zero emission vehicles.
The 25th Society of Motor
Manufacturers and Traders (SMMT) Sustainability Report,
published today, shows the amount of CO2 directly
emitted in vehicle production more than halved (-54%) compared
with 1999 levels – a major milestone achieved through
massive industry investment. At the same time, the amount of
energy and water used per vehicle was slashed by -18.0% and
-17.7% respectively last year, with usage now -33% and -42% below
1999 levels.
UK manufacturers are also helping cut on-road emissions with
record volumes of electrified vehicles leaving factory lines in
2023, as output rose by almost half (48.0%).1
Recent independent analysis suggests that, with the right
investment conditions, by 2035 more than a million ZEVs a year
could be rolling off UK factory lines – exported worldwide and
fuelling billions of pounds of domestic economic
growth.2
With the new government's commitment to an industrial strategy
and its already published Automotive Sector Plan, SMMT's new
report signposts the UK's green growth potential – with
automotive its driving force. Collaboration will be crucial,
making the UK even more globally competitive, attracting
investment not just in finished vehicle manufacturing but in its
supply chains and adjacent sectors. Providing more sustainable
and affordable energy is pivotal, as are free and fair trade
agreements which promote UK-made products globally while ensuring
access to critical raw materials. A mass UK market for ZEVs is
also needed given manufacturers seek to locate close to where
their products are sold. Meanwhile, a diverse and skilled
workforce that can design, build, manufacture, maintain and
repair ZEVs is fundamental to a successful transition.
Mike Hawes, SMMT Chief Executive, said,
“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. Automotive can be the driving force
behind this strategy, reducing carbon emissions still further
while growing the economy, improving air quality and delivering
new jobs and skills for people across the country.”
The automotive industry is vital to the wider UK economy, with
auto-related manufacturing worth £93 billion and delivering £22
billion value added, while typically investing around £4 billion
a year in research and development. The sector includes more than
25 manufacturers building over 70 vehicle models, plus specialist
small volume manufacturers, supported by some 2,500 supply chain
businesses. As a result, the industry's contribution to
employment is significant, with more than 198,000 jobs directly
in manufacturing and 813,000 in total across the automotive
industry. Many of these are outside London and the Southeast with
wages around 13% above the UK average. Automotive also supports
jobs in key sectors such as steel, chemicals, plastics, rubber,
advertising, finance and logistics.
7 MEASURES TO MAKE SUSTAINABILITY A COMPETITIVE ADVANTAGE
IN THE UK:
- Publishing a green automotive transformation strategy that
sets out a holistic, joined-up approach and provides a pathway
towards the UK automotive industry's ultimate sustainability and
circularity goals
- Introducing a package of fiscal, tax and regulatory support
measures that attract new investment and ensures domestic vehicle
producers are globally competitive
- Providing support and guidance to empower a sustainable,
transparent UK supply chain
- Mobilising a skilled, diverse, empowered UK workforce
- Developing a UK regulatory ecosystem in partnership with
business that is ambitious, deliverable and harmonised with
global regulatory requirements and international sustainability
objectives
- Ensuring UK sustainability data requirements match the high
ambitions of automotive companies operating across global markets
- Maintaining and further supporting access to critical raw
materials and cross-border trade, building supply chain
resilience to attract investment in zero emission and
sustainability technologies
Notes to editors
1 https://media.smmt.co.uk/december-2023-uk-car-manufacturing
2 SMMT Vision 2035, page 7
