The report was carried out for the LowCVP – a UK public-private partnership to promote lower carbon vehicles and fuels – by E4tech and the Centre for Automotive Industry Research at Cardiff Business School and was conducted between March and June 2014.

Key stats from the report include:

• UK automotive manufacturing sector turnover climbed from £46.3bn in 2003 to £64.1bn in 2013.
• Confirmed total value of £17.6 billion in low carbon investments
• Average new car tailpipe CO2 emissions have fallen by 25% to below the threshold of 130g/km

LowCVP managing director, Andy Eastlake said: ‘The emphasis of policy makers on environmental achievements and “green growth” has bolstered the foundations of the UK automotive sector.

‘Experience over the last 10 years shows that a consistent policy approach based on collaboration between all stakeholders can deliver dividends. This represents the first strides on the road to meeting the environmental imperative of decarbonising road transport by 2050.

‘There are, however, no grounds for complacency and the job is far from done. We urgently need to repeat the success seen in our passenger car and bus sectors, in all aspects of road transport such as the truck and commercial vehicle industries and of course the supply of low carbon fuels and energy to power all forms of transport.’

Commenting on the report, Greg Archer, clean vehicles policy manager at environmental NGO Transport & Environment, said: ‘This report shows that Europe's policy to reduce CO2 emissions from new cars and vans is delivering the much-needed investment boost, level playing field and long term certainty that the car industry needs. It is therefore essential that this long-term market signal is maintained by setting 2025 CO2 limits for cars and vans – something the UK automotive industry should now embrace.

‘In the area of fuels and lorries, where the EU policy framework is weak, or even absent, so too have been the green growth opportunities for UK business. For the sake of reaping the wider economic benefits of smart laws, the EU should conclude discussions on fuel regulations to 2020, establish a policy framework post 2020 and introduce a law to drive stagnated truck fuel economy and CO2 emissions.’