The Society of Motor Manufacturers and Traders (SMMT) has released a report indicating that the UK’s automotive remanufacturing sector presents an opportunity for economic advancement and enhanced resource self-reliance.

The report underscores the sector’s ability to conserve resources, noting the possibility of reducing raw material usage by up to 88% when compared to manufacturing new parts.  

At present, the industry is valued at £500m ($670.70m) and could increase its share in a global market projected to grow to £31bn within five years. 

With 41.9 million vehicles on UK roads, including a significant number over ten years old, and a growing fleet of 1.6 million electric vehicles, the UK is well-positioned to become a hub for remanufacturing activities such as battery refurbishment.  

However, the expansion of this industry is contingent on the establishment of a supportive policy environment, according to the body.

The SMMT’s document, ‘Powering Circular Growth: How automotive remanufacturing drives sustainability and industrial opportunity in the UK’, calls for these policy reforms. 

These include modifying end-of-life vehicle regulations to better accommodate remanufacturing, adjusting trade agreements to allow easier movement of used parts for refurbishment, and redefining waste regulations so that used parts are considered valuable raw materials. 

The adoption of such policies would reportedly not only clarify the process of producing and utilising remanufactured goods, but would also bolster the sector’s role in fostering economic growth, enhance the UK’s trade position, and attract new investments in infrastructure, employment, and skills development. 

SMMT CEO Mike Hawes said: “Backing remanufacturing will be a boon for the UK – it drives job creation, fuels economic growth, and slashes carbon and waste. To realise its full potential, remanufacturing, and the independent remanufacturing sector, must be central to the UK’s circular economy strategy. With the right regulatory support, this sector can thrive. 

“The UK already boasts one of the world’s most diverse automotive manufacturing industries, and invigorating our remanufacturing capability will strengthen our sustainability credentials and sharpen our global competitive edge.” 

Recently, the SMMT reported a positive trend in the UK’s automotive industry, with a 13.7% increase in new car registrations in September, the highest for the month since 2020, with a total of 312,891 vehicles registered.