C02 emissions per vehicle made down 13 per cent in 2011

The improvements in environmental performance were achieved despite vehicle production rising by 5.1 per cent last year, fuelled by a strong export market. Exports were up 14 per cent to a record 81.6 per cent of total output while turnover for the sector rose by more than 12 per cent to £55 billion.

The British automotive industry is the largest manufacturing sector in the UK. Independent forecasts suggests it could hit all-time record manufacturing levels of two million vehicles by 2015. But the sector is also at the forefront of more efficient manufacturing processes and low carbon vehicle innovation, investing over £1.3 billion a year on R&D.

Jaguar Land Rover, for example, has reduced manufacturing emissions by 25 per cent since 2007 and has invested over £1.5 billion per year in new technologies to reduce tailpipe emissions.

"Automotive is continuing to lead the country’s economic recovery, increasing manufacturing output, delivering record turnover and exporting a greater proportion of cars than ever before, all while reducing our environmental footprint. In a tough economic climate, the automotive sector has continued to perform above expectations, demonstrating the significant role it has to play in a re-balanced economy," said SMMT chief executive, Paul Everitt.

"Our industry is at the forefront of the drive to a low carbon economy attracting investment in the research, development and manufacture of low and ultra-low carbon technologies, creating new jobs and growth opportunities throughout the supply chain and introducing attractive products that are reducing transport emissions as well."