UK’s automotive remanufacturing industry could drive economy: SMMT

Core Insights - The UK's automotive remanufacturing sector offers significant economic opportunities and resource self-reliance, with potential raw material usage reduction of up to 88% compared to new part manufacturing [1][2]. Industry Valuation and Growth Potential - The current valuation of the automotive remanufacturing industry is £500 million ($670.70 million), with projections indicating a growth to a £31 billion global market within five years [2]. - The UK has 41.9 million vehicles on the road, including a substantial number over ten years old and a growing fleet of 1.6 million electric vehicles, positioning it as a potential hub for remanufacturing activities like battery refurbishment [2]. Policy Recommendations - The expansion of the remanufacturing industry relies on a supportive policy environment, as highlighted in the SMMT report titled 'Powering Circular Growth' [3]. - Suggested policy reforms include modifying end-of-life vehicle regulations, adjusting trade agreements for easier movement of used parts, and redefining waste regulations to recognize used parts as valuable raw materials [4]. Economic Impact and Job Creation - Implementing these policies would clarify the production and utilization processes of remanufactured goods, enhance economic growth, improve the UK's trade position, and attract investments in infrastructure, employment, and skills development [5]. - SMMT CEO Mike Hawes emphasized that supporting remanufacturing would create jobs, drive economic growth, and reduce carbon emissions and waste, making it central to the UK's circular economy strategy [6]. Industry Trends - The UK automotive industry has shown positive trends, with a 13.7% increase in new car registrations in September, marking the highest figure for that month since 2020, totaling 312,891 vehicles registered [7].