According to Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), the UK automotive industry is making significant strides in reducing its environmental impact, as highlighted in its 26th Sustainability Report. Last year, the sector’s energy consumption per vehicle fell by 2.4%, and average new car tailpipe CO2 emissions decreased by 6.2%.
UK vehicle plants generated a record 60.3 GWh of renewable electricity in 2024, nearly a third more than the previous year, preventing almost 12,500 tonnes of CO2 emissions. This was achieved through investments in on-site solar panels and wind turbines. However, with electrified models, which demand more energy to produce, now making up over a third (35.4%) of UK car production, and new zero-emission models and gigafactories planned, the demand for affordable, clean energy is expected to rise considerably.
Despite manufacturers’ efforts to increase on-site renewable energy generation, progress is hampered by lengthy grid connection timelines, currently averaging almost 14 years. This delay, coupled with the UK having some of the highest electricity prices in Europe, directly impacts the industry’s competitiveness.
The SMMT urges the government for rapid implementation of its Industrial Strategy reforms, which could reduce electricity bills by a fifth. They also advocate for the proposed relief on standing charges, currently aimed at battery production and other energy-intensive industries, to be extended to automotive businesses. Hawes argues this is crucial given the sector’s trade intensity and its central role in achieving net-zero targets, stating that faster grid connections and reduced energy costs are vital to unlock further investment, create jobs, and foster growth.
