British vehicle factories increased their on-site renewable electricity generation by 36% last year but manufacturers say high energy prices and grid delays are holding back further investment.
New analysis from the Society of Motor Manufacturers and Traders shows automotive plants generated a record 80.4GWh of renewable electricity during 2025.
That is enough to power more than 32,000 homes for a year and removed around 14,000 tonnes of carbon dioxide from vehicle production.
The data covers manufacturers responsible for 99.7% of UK-built cars and commercial vehicles alongside businesses from the wider automotive supply chain.
More than a third of the industry’s electricity was supplied through green power from the grid during the year. Manufacturers also reused or recycled more than 93% of their waste.
The transition is extending into vehicle production with more than 160 zero-emission models now available and 470,000 new battery electric cars registered in Britain during 2025.
Apprenticeship and trainee numbers increased by almost a third to more than 6,000 roles as businesses sought workers with the skills required for electrification and a more circular economy.
However the SMMT warned that manufacturers trying to expand their own renewable generation face complex planning rules, high upfront costs and grid reinforcement requirements. The largest projects can wait up to 15 years for a connection.
Reliable low-carbon power will become increasingly important because manufacturing electric vehicles requires more energy than producing conventional models. There are already 27 zero-emission vehicles in production or announced for production in Britain.
On-site generation saved automotive manufacturers £20 million from their annual energy bills last year.
Those savings remain small compared with UK industrial electricity prices which are now 115% above the European average.
The gap has widened from around 65% in 2019. The British Industrial Competitiveness Scheme could cut electricity costs by up to 25% for eligible companies but the SMMT expects UK industry overall to continue paying around 60% more than European competitors.
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.”
The trade body wants faster grid upgrades, simpler connection arrangements, reforms to network and standing charges and electricity prices decoupled from international gas markets.
