Reforms to the UK’s energy grid are crucial for decarbonizing the automotive sector, as highlighted in the SMMT’s 26th Sustainability Report. Progress includes a 2.4% decline in energy needed for vehicle production and a 6.2% decrease in new car CO₂ emissions. UK vehicle plants achieved a record 60.3GWh of renewable electricity generation, with electrified models accounting for 35.4% of new car production in 2024.

In June, the UK’s new car market grew for the second consecutive month, with a 6.7% increase in registrations to 191,316 units. EV registrations reached a 48.5% market share, with battery-electric vehicles rising by 39.1% to 47,354 units. Manufacturers are investing in renewable energy generation on-site to reduce reliance on external sources.

The UK faces the highest electricity prices in Europe, impacting competitiveness. The government’s Industrial Strategy aims to address this, potentially reducing electricity bills by 20%. The SMMT calls for relief on standing charges for battery production and other energy-intensive industries to extend to automotive businesses, supporting their role in achieving net zero.

The automotive sector has made strides in zero-emission vehicles and decarbonizing manufacturing. With reduced energy costs and improved grid connections, the industry could enhance its low-carbon manufacturing capabilities, fostering job creation and growth in the UK. Grid reform is key for decarbonizing the auto sector, according to the SMMT.

Read more at Yahoo Finance: Grid reform key for decarbonising auto sector: SMMT