Examples of new high-tech low-carbon thinking include the intelligent stop-start system fitted to this year's diesel Freelander model that eliminates tailpipe pollution when the vehicle stops, such as in traffic or while waiting at the lights.
Other innovations, showcased by the LRX concept car, include a pioneering diesel-electric hybrid engine that not only gives pollution free low-speed city driving but also improves off-road performance by supplementing the normal diesel power with electric power.
These projects, and others, are partly funded by the government through its Low Carbon Vehicles Innovation Platform, which Mr Smith described as a great example of intelligent government support for the industry.
"But we don't just need partnerships between public and private sectors, academia, trade unions and local Government. We need more co-operation and joined-up thinking between our different industries. Under the umbrella of a new low-carbon industrial policy, British industries - automotive, aerospace, digital manufacturing, electronics, pharmaceutical, defence, chemical, the oil industry, and more - could and should work together more effectively. Our automotive industry, for example, can provide huge long-term improvements and so can the aerospace business with carbon reductions of up to 20 percent within five years. By working better together we can all help UK plc become a low-carbon leader not a follower."