Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Carmakers Embrace Sustainability

Growing use of recycled materials, parts in vehicle manufacturing could bring a significant market shift, report says.

March 26, 2025
Carmakers Embrace Sustainability

Kia introduced a matt for its EV3 last fall that's made from plastic from the Great Pacific Garbage Patch.

Credit:

Kia

2 min to read


Automakers are increasingly incorporating recycled materials into their vehicle manufacturing in response to consumer interest, a new report shows.

The trend stands to reshape market competition, according to the analysis by GlobalData, a London-based data analytics provider and consultant.

Ad Loading...

A “considerable shift” is taking place in the industry when it comes to materials sourcing and production processes as automakers prioritize recycled and sustainable materials, the report says. 

Incorporating such changes, in addition to reducing environmental impacts, can reduce production costs and make operations more efficient, says GlobalData, which adds that for the consumer lighter-weight materials, including recycled plastics, improve fuel efficiency.

It points out efforts by multiple major automakers:

  • Toyota, Mazda and Honda programs to use recycled plastics in vehicle manufacturing

  • Ford’s seat cushions that incorporate plastic recycled from water bottles 

  • Volvo’s use of recycled material from fishing nets and ropes in one model’s interior components

  • Jaguar’s application of vehicle fabric made from ocean debris plastics 

Toyota announced a new program this month to recycle vehicles and their parts to make new ones. The Toyota Circular Factory starts its first operation this fall at a Corolla plant in England.

Ad Loading...

Automakers are collaborating with recycling companies to source materials, says GlobalData, which expects the efforts to influence auto consumer buying habits and bring a “significant” shift to the industry.

“As manufacturers adapt to these sustainable practices, we may observe a transformation in consumer preferences, with buyers increasingly favoring brands that prioritize environmental responsibility,” said company Automotive Analyst Madhuchhanda Palit.

Increased demand for recycled material for auto manufacturing could also increase demand for more electric and hybrid vehicles, feeding industry growth, Palit says.

LEARN MORE: How to Drive Sustainability

Originally posted on Auto Dealer Today

More Industry

Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →
Bar graphic showing car segment activity for the previous week
Industryby StaffMarch 31, 2026

Black Book: Weekly Market Update

Last week's wholesale auction activity was stable, though buyers exercised selectivity as they focused on certain segments.

Read More →
Ad Loading...
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Line chart depicting retail used-vehicle auction volume
Industryby StaffMarch 24, 2026

Black Book: Weekly Market Update

Both conversions and values were up last week, though business was spotty depending on the segment in question.

Read More →
red battery-electric vehicle using a Tesla Supercharging station
Industryby Lauren LawrenceMarch 24, 2026

Stellantis Expands Charging Network

Five of its brands now have greater access to battery-electric vehicle charging through Tesla’s Supercharger network across North America.

Read More →
Ad Loading...
blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →