P&A Providers & Administrators
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

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →