SMMT Update – Home-grown energy for home-made vehicles
Progress to net zero is often measured by the vehicles we drive, but it must also be measured by how those vehicles are made. The 27th annual UK Automotive Sustainability Report published this week reflects exceptional achievements in 2025, particularly in greener energy – with manufacturers growing on-site renewables generation by a third and saving 14,000 tonnes of CO2 in the process. A further third of the sector’s electricity was also supplied through green energy from the grid, cutting an additional 14,000 tonnes of carbon.
The industry has huge potential to go further but government support is essential. More than 27 zero-emission car, van, truck and bus models are already in or planned for UK production and, given these models are more energy-intensive to make, demand for clean and affordable power will only rise. Yet grid connections can take up to 15 years for the largest projects, while industrial electricity bills are double the European average. Fast-tracking grid upgrades and renewables project approvals, decoupling electricity prices from gas, and reforming network fees and standing charges would help manufacturers scale up faster.
Such measures would also help accelerate decarbonisation on the road where, particularly in the HGV sector, operators are challenged by similar barriers, including infrastructure access and affordability. SMMT’s latest data published this week shows zero emission vehicles represented less than 1% of truck registrations in the first half of this year, compared with the albeit easier to decarbonise depot-based bus sector where ZEVs make up almost a third of the market following substantial and targeted government support.
New car buyers also need confidence to invest in new technologies and, despite unprecedented manufacturer discounts and support from the Electric Car Grant, uptake is still lagging ambition. It will not be helped by this week’s announcement that the proposed pay per mile tax for EVs (eVED) will go ahead in 2028 – a measure which the OBR expects will result in 440,000 fewer BEV sales, just as industry’s ZEV mandate target ramps up to 52%. This is patently the wrong measure at the wrong time.
Although the UK’s mandated targets remain unrealistic, industry’s commitment to net zero remains undiminished – but we need an approach that is viable and safeguards investment, given sustainability cannot be achieved without it.