On-site factory renewable energy generation by UK vehicle manufacturers has risen by more than a third last year, according to new analysis from the Society of Motor Manufacturers and Traders (SMMT).
The record levels, cited in the SMMT’s UK Automotive Sustainability Report, reveals the sector’s on-site renewables generation rose 36.0% to 80.4GWh in 2025 – enough to provide more than 32,000 British homes with electricity for a year, and removing around 14,000 tonnes of CO2 from production.
The analysis, representing manufacturers of 99.7% of all UK-built cars and commercial vehicles as well as the wider supply chain, reflects industry investment to cut carbon, reduce resource use and build greener plants for greener vehicles.
The progress is part of a wider sustainability drive across the industry, with more than a third (36.5%) of all industry’s electricity supplied through green energy from the grid last year, while more than 93% of manufacturing waste was reused or recycled.
The broader industry is also bringing more zero emission vehicles to market – with more than 160 models on offer and almost half a million (470,000) new battery electric cars registered in the UK in 2025.
Meanwhile, investment is also supporting people, with UK automotive apprenticeship and trainee numbers up almost a third to more than 6,000 roles, helping build the skills needed for net zero and a more circular economy.
The SMMT said removing the barriers of grid connections and planning would enable more factories to generate their own clean power, further cutting embedded carbon in UK-built vehicles and strengthening Britain’s appeal as a competitive, low carbon manufacturing location.
It added that EV production is more energy intensive than conventionally fuelled vehicle production and, with 27 zero emission models already in or announced for UK production, manufacturers need reliable access to low-carbon electricity “that is internationally competitive”.
Renewables generation helped manufacturers save £20 million on their annual energy bills last year, but those savings are dwarfed by UK industrial electricity prices that are more than double (115%) the European average, having surged since 2019 when UK costs were around 65% higher.
A more holistic approach is therefore needed, accelerating grid infrastructure, streamlining connections for renewables projects, decoupling electricity prices from the international price of gas, and reforming grid network charges and standing charges, the SMMT said.
Mike Hawes, SMMT Chief Executive, said:
“The UK automotive industry is investing significant amounts to try and remain competitive, innovating to decarbonise from well to wheel and creating greener factories for greener vehicles in every nation of the UK. But ambition alone cannot deliver sustainability at the pace needed.
“Manufacturers need faster connections, more low-carbon power and energy costs that are internationally competitive. With the right conditions, industry can go faster and further, delivering investment, jobs, economic growth and decarbonisation for generations to come.”
Image courtesy of SMMT
