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Why the automotive sector is so important to the UK economy

Land Rover Defender 1948

The Society of Motor Manufacturer’s and Traders (SMMT) highlights the vital role the motor industry has to play in the UK’s economy.

  • 27 car and CV manufacturers operating in the UK
  • 1.75m cars and commercial vehicles produced each year
  • £51b turnover
  • £9.5 billion value added
  • Over 800,000 UK jobs
  • UK automotive manufacturing supplies over 100 markets worldwide, offering some resilience to the UK issues
  • New cars emit less CO2 than older models – average new car CO2 emissions have fallen 16% in the last decade

At €20 bn, the automotive sector is Europe's largest investor in R&D, driving industry forward  and helping deliver more sustainable motoring for the 21st century. Technological innovation has helped car and CV manufacturers slash CO2 and air quality emissions from vehicles. New diesel cars for example emit 95% less soot from the tailpipe than those made 15 years ago and average new car CO2 has been cut by 16% since 1997.

The energy needed to produce each vehicle is down 12%, water use is down 9% and waste to landfill is down 25%, compared to 2006 performance. CO2 emissions per vehicle produced have fallen 14% in the last year and by 45% since 1999. Almost 10,000 tonnes of waste have been prevented from entering landfill sites.

The JD Power report also found a strong awareness among respondents in the UK regarding a £5,000 payment incentive for buyers who purchase a new electric or plug-in hybrid vehicle starting in 2011 with 63 percent acknowledging their awareness.

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