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.

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.

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