New car CO₂ emissions

Report contents: New car CO₂ emissions | Influences on new car CO₂ emissions | Total CO₂ and other emissions | Light Commercial Vehicle CO₂ emissions | Outlook for new car CO₂ emissions

Page contents: UK average new car CO₂ | Trends in new car CO₂ emissions | Trends by model | Trends by segment | Trends by fuel type | Trends by sales type | CO₂ emissions across the EU

The last five years have seen a dramatic change in the buying behaviour of UK motorists and consequently on the rate of CO₂ emission reduction. Since recession struck the UK in 2008, new car buyers have prioritised fuel efficiency more than ever and vehicle manufacturers have redoubled efforts to enhance efficiency and reduce emissions across all vehicle types.

Achieving 133.1g/km CO₂ in 2012 is testament to vehicle manufacturer R&D and to motorists who have embraced new technologies like never before. In the past five years alone the proportion of alternatively-fuelled vehicles registered has doubled. The industry has also cut 31.8g/km CO₂ off the average car’s emissions, a 20% improvement, and we’ve seen the share of sub-130g/km CO₂ cars (the level targeted by the EU for 2012-2015) go from just 10.6% of new cars in 2007 to more than 55% in 2012.

This report, and the 11 previous New Car CO₂ reports, provide a valuable annual snapshot and a detailed year-on-year log of the advances made by industry to meet environmental goals. The UK has played an important role in the worldwide development of ever cleaner technologies and, thanks to our engineering expertise, this is set to continue well into the future. Now, we need all parties to work together to deliver a thriving industry that continues to contribute to the improvement of the environment.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Quarterly update

• Average UK new car CO₂ emissions stood at 133.1g/km in 2012, down 3.6% on 2011
• The average new car emitted 131.9g/km in Q4 2012, down 3.4% on a year ago

Quarterly UK new car CO₂ emissions, 2008-2012 (SMMT data)

UK average new car CO₂ emissions, 1997 – 2012 (SMMT data)

The recent rate of improvement follows across the board reductions from all sales types, segments and fuel types. This reflects manufacturers realising the benefits of long-term investment in lower CO₂ emitting technologies, in part designed to meet the EU New Car CO₂ Regulation which came into effect in 2012. Manufacturers have increased the choice to consumers of lower CO₂ emitting vehicles, across all vehicle types, and this has contributed to record shares of the market in low CO₂ vehicles. For example, 55% of the UK market in 2012 met the EU’s 2012-2015 target of 130g/km, up from 10.6% in 2007.

Efficiency and lower running costs have also become more important to consumers, following the recession, rise in fuel prices and changes to CO₂ based motoring taxes, such as the introduction of the first year Vehicle Excise Duty (VED) rate. Manufacturers have competed to capitalise on this.

The market has seen a shift to diesels, which typically emit 10-20% less CO₂ than their petrol equivalents. Diesels took a record 50.8% share of the market in 2012. The introduction of more alternatively-fuelled vehicles (AFVs) helped these vehicle types record a 1.4% share of the market, after a 9.4% rise in volumes in 2012. Registrations of Mini and Supermini segments also rose in 2012, but so did demand for the Dual Purpose and Executive class vehicles, which curbed some of the progress on CO₂ reductions.

A new car emits around one fifth less CO₂ than the average car in use in the UK. The shift in composition of the vehicle parc to new, more efficient vehicles has contributed to total CO₂ emissions from all cars in use having fallen by 14% between 2000 and 2011. However, the decline in overall new car registrations since the recession has slowed the renewal rate of vehicles in the parc.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

UK average new car CO₂ emissions, EU targets to 2020 and average car in use figure

Each manufacturer must achieve further reductions in their own specific performance to meet the EU New Car CO₂ Regulation. By 2020 new cars in the EU must average 95g/km of CO₂. Achieving this target will require further gains in vehicle efficiency, through progress of traditional internal combustion engined (ICE) vehicles and the introduction of more AFVs. Manufacturers are investing in a range of technologies, including innovative powertrains as part of their effort to meet market demand and the EU Regulations.

To achieve the EU targets it will also be necessary to encourage consumers to adjust their vehicle choices towards even lower emitting vehicles. The CO₂ targets will be challenging to meet, especially if economic growth picks up and curbs consumer appetite for low-emitting vehicles. Encouraging behavioural change will require support from other stakeholders, notably government and fuel suppliers.

Government should also look to ensure that both industrial and environmental ambitions can be met and the UK automotive sector can grow whilst reducing CO₂ and contributing to economic growth. The sector also faces the challenges of delivering improvements in air quality, increased focus on life-cycle analysis, revisions to the fuel efficiency CO₂ test procedure and meeting the requirements of a global market.

• Average new car CO₂ emissions fell to 133.1g/km in 2012, down 3.6% on 2011.
• Emissions fallen continuously and were 26.5% below 2000 levels in 2012.
• 55.4% of the market had CO₂ emissions of 130g/km or below in 2012.
• Diesel cars took a record 50.8% share of new car market in 2012
• Alternatively-fuelled cars a record 1.4% share of 2012 market.
• Total CO₂ emissions from all cars in use fell 1.8 in 2011 on 2010 and 14% on 2000.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Sources: All data SMMT unless otherwise stated (*DECC and ** DfT)

Key: CO₂ – carbon dioxide, g/km – grams per kilometre, MtCO₂ – million tonnes of carbon dioxide, Mn – million and Bn kms – billion kilometres

Data collation

SMMT CO₂ data is collated by SMMT’s Motor Vehicle Registration Information System (MVRIS) and links the vehicles’ CO₂ levels to the MVRIS new car registration database to create sales weighted figures. The CO₂ data is sourced from manufacturers’ own CO₂ figures (as supplied on the vehicle’s first registration document) and checked with type approval data from the Vehicle Certification Agency (VCA) to ensure accuracy.

Trends in new car CO₂ emissions

• Average new car CO₂ emissions fall 3.6% in 2012 and by 26.5% since 2000.
• New car market grew by 5.3% in 2012, but is still below pre-recession volumes.
• Private/fleet purchaser balance shifted since 2007, but little impact on market average CO₂ performance.
• Move to diesel and alternatively-fuelled vehicles in 2012.
• Market shift to small cars (eg Mini and Superminis) and niche vehicles (eg Dual Purpose).

The SMMT CO₂ database can be differentiated by a number of vehicle characteristics including make, model, engine variant, fuel type, sales type and market segment. In all these metrics average new car CO₂ emissions have fallen consistently.

Average new car CO₂ emissions

New car CO₂ emissions declined 3.6% in 2012 to a new low of 133.1g/km. There has been a step change in performance since 2008 – as shown in the table below – with the annual rate of reduction averaging 4.3% since 2008, compared with 1.4% between 2000 and 2007. The 2012 reduction was just below the 2008-2012 average. This table includes the 2020 EU target and the average rate of improvement this will require, for comparative purposes.

UK new car average CO₂ performance, 2000-2012, with EU target for 2020

The performance between 2008 and 2012 was not linear. Emissions fell by 5.4% in 2009 – the largest single annual fall. This corresponded with the recession and the introduction of the Scrappage Incentive Scheme. Cars registered through this scheme (of which three-quarters took place in 2009) had average CO₂ emissions some 10% below the market average and 30% below the vehicles they replaced.

The new car market has shifted into lower VED band vehicles, see charts below. In 2012 8.2% of the market was in the lowest VED band (A – up to 100g/km), up from 3.7% in 2011 and 0% in 2000. 55.4% of the 2012 market was in bands A to D, so emitted 130g/km or less CO₂, and so paid nothing under the first year VED rate. Band D (121-130gkm) become the most popular band in 2012, and accounted for 18.2% of the market. In 2011 band E (131-140g/km) was most popular, and between 2000 and 2007 it was band G (151-165g/km). Just 0.4% of the market in 2012 was in the top VED band, over 255g/km of CO₂, down from 0.6% in 2011 and 3.5% in 2007.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

New car market split by VED band (note all data split by current 13 band VED system)

Market trends – by model

Over time the market has moved into lower CO₂ bands, as evident in the chart below, which differentiates the market into four CO₂ bands. The sub 130g/km market has grown rapidly, such that over the half the market now sits in that band. The market for cars emitting 95g/km or below of CO₂ has picked up sharply over the past three years, moving from 17,252 units to 47,051 units – equivalent to 2.3% of the total market, in 2012. In 2007 only 523 cars were registered emitting 75g/km or less CO₂ and in 2000 none were.

Increased choice

Vehicle manufacturers have invested heavily to bring more efficient, lower CO₂ emitting vehicles to market. This is being undertaken to ensure manufacturers remain competitive, meet consumer expectations and deliver the EU New Car CO₂ Regulation targets.

Manufacturers have all lowered their CO₂ emissions over time and made continuous improvements in vehicle efficiency across all segment and model types. These improvements have come from significant R&D expenditure on technology in both internal combustion engines (ICE – petrol and diesel) and alternative power trains (electric, hybrid, etc), as well as improvements in aerodynamics, weight-saving, energy recovery systems and more efficient components.

Typically, the largest step changes are made when a new drivetrain is introduced, but incremental improvements, for example to engine management systems, can be made at other times.

Improvements in CO₂ performance have had to be achieved alongside measures to reduce emissions of other air pollutants and improve vehicle safety, performance, comfort, refinement and reliability. Some of these attributes are difficult to progress in unison. For example, some safety measures may increase weight or drag, which impact on CO₂ efficiency.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Market trends – by segment

As an example of the continuous improvement in vehicle efficiency, the CO₂ performance of the UK’s best selling models over the past decade, the Ford Fiesta and Ford Focus, have seen a 20-25% reduction in emissions of each model variant between 2000 and 2012. Therefore, if buyers did not change their buying habits over time they would still have benefitted from improved environmental performance. If consumers had moved from a petrol to diesel model they would have seen an even larger CO₂ saving. A shift to an alternatively-fuelled vehicle would also have enabled them to move to a lower CO₂ emitting variant.

SMMT’s CO₂ database can demonstrate how lower CO₂ emitting vehicles’ availability has increased. At a model variant level (eg at engine and specific trim level) the growth in low CO₂ emitting vehicles below certain CO₂ thresholds has increased, see table below for details. For example 2,425 variants (with at least one new registration) emitted 130g/km or less CO₂ in 2012, equivalent to 30% of the market. This was a 30% rise on the number in 2011 and five times the level in 2007.

Number of model variants by selected CO₂ bands (source: SMMT CO₂ database)

The growth in the number of cars emitting less than 100g/km – in the lowest band for VED, eligible for 100% writing down allowances and exempt from the London Congestion Charge – almost doubled in 2012 from 2011. 82% of these cars were traditional ICE vehicles. The lowest emitting diesel car in 2012 was the Hyundai i20 with emissions of 84g/km.

The lowest emitting petrol car was the Fiat 500, with 89g/km CO₂ emissions. Compared with the lowest emitting diesel and petrol car in 2000, these vehicles have cut emissions by 25.7% and 23.7% respectively.

Cars emitting less than 75g/km are alternatively-fuelled vehicles, such as pure electric vehicles (PEVs), plug-in hybrids (PHEVs) and range extender electric vehicles (EREVs). Pure EVs emit zero emissions from the tailpipe. The best selling pure EV in 2012 was the Nissan LEAF. The Toyota Prius Plug-in emits 49g/km of CO₂ and the range extender Vauxhall Ampera and Chevrolet Volt models emit 27g/km of CO₂.

Petrol/electric hybrids typically have CO₂ emissions up to 30% below their petrol or diesel equivalents. For example, the Toyota Yaris hybrid emits just 79g/km, compared with 104g/km for the lowest diesel Yaris in 2012. Diesel/electric hybrids appeared for the first time in the UK market in 2012. They have CO₂ emissions up to 20% below their ICE equivalent; the Peugeot 508 hybrid has CO₂ emissions of just 95g/km, compared with 104g/km for the lowest diesel Peugeot 508 variant.

Trends in UK new car market

The new car market in 2012 rose by 5.3% on 2011 volumes to 2.045 million units. This rise, coupled with falling demand in mainland Europe, contributed to the UK becoming the second largest volume market in Europe, behind Germany and having overtaken France.

UK new car registrations, rolling year total, 2007-2012

The 2012 new car market remained some 15% or over 400,000 units below the 2007 pre-recession market. The recession resulted in a sharp reduction in new car demand. The full year market has trended around two million units since 2009, although on a rolling 12-month basis the performance has been more volatile and supported in 2009 and 2010 by the Scrappage Incentive Scheme. Almost 400,000 cars were registered through the scrappage scheme.

The scrappage scheme and squeezed household incomes helped demand for Mini/Supermini type vehicles rise, and for higher CO₂ emitting vehicles to fall. This led to exceptional rates of reduction in average new car CO₂ emissions in 2008 and 2009.

Market trends – by sales type

The overall new car market in 2012 grew after a 12.9% rise in private registrations. Private demand at the end of 2012 was 10% or 120,000 units above levels SMMT expected at the start of the year. The growth is likely to reflect market-specific factors, given the wider economic setting. Pent-up demand from past buyer cycles and a switch from used to new activity are likely to have been encouraged by attractive deals and offers from manufacturers, supported by exchange rate movements and the weakness of sales in mainland Europe.

Private buyers tend to buy smaller cars, Supermini and Mini segment vehicles, compared with fleet buyers. These vehicles tend to be petrol engined due to the size, cost and performance characteristics which influence private buyers’ decisions. Given private buyers have a lower annual mileage compared with fleet drivers, they are less likely to benefit from the higher MPG typically associated with diesel-powered cars.

With this mix of vehicle type/fuel type performance, the average new car CO₂ emissions of private and fleet buyers are broadly equal. The average CO₂ emissions of cars registered to private buyers was 134.4g/km in 2012, 1.8% above that of fleet buyers’ 132.0g/km. The shift to private buyers will therefore have reduced the overall rate of improvement in CO₂ emissions from the market total in 2012. Private average new car CO₂ emissions in 2012 were 23.8% down on 2000 and 3.6% 2011 levels; by comparison the average for fleet buyers was down 26.2% and 3.8% respectively.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Average new car CO₂ emissions by sales type, 2001-2012 (SMMT)

The shift in the market between fuel types and segmentation (as defined by SMMT’s MVRIS – Motor Vehicle Registration Information System) shows how the market has migrated towards more efficient vehicles. Diesels and AFVs, which are lower CO₂ emitting than equivalent petrol cars, took a record share of the market in 2012. Small cars (Mini and Supermini segments) also saw growth in volumes in 2012, supported by new model activity.

Performance by segment type

SMMT’s MVRIS divides the market into nine different segments, relating to the vehicle’s size, body style and drivetrain. These segments are listed in the table, below. This shows segments A – D have average CO₂ emissions below the market average. It also shows how the market has moved from segments C and D (typically family saloons/hatchbacks) towards smaller cars in the Mini and Supermini segments and niche products, like the Dual Purpose segment. In 2012, the market growth in the Mini segment was supported by the new VW up! (and equivalent models from SEAT and Skoda), and the Dual Purpose segment growth followed strong sales of the Range Rover Evoque. The shift to small cars benefitted average new car CO₂ performance, but was in part offset by the market shift to niche segments.

All segments have seen their average CO₂ emissions fall. This follows improvements across the board from new models and variants. The biggest percentage reductions since 2000 have come from segments seeing a switch to diesel powered models, in the Executive and Dual Purpose segments. Similarly fuel switching influenced the 2012 versus 2011 performance. The Upper Medium segment, which saw the largest reduction in average emissions over the year, saw AFVs take a relatively large 2.4% share of the segment. In segments such as Dual Purpose there has also been a downsizing as new models have been introduced. For example, in 1997 the Land Rover Discovery was the best selling Dual Purpose model, in 2000 it was the smaller Freelander and in 2012 the Evoque range. Use of smaller capacity engines in this, and other segments, can also help reduce CO₂ emissions.

CO₂ reductions in the Mini and Supermini segments have been constrained by the lower price and physical size of the models not lending themselves to dieselisation or hybridisation – although such variants are available. These smaller vehicles also tend to cover lower mileages and so their users are less likely to benefit from a shift away from petrol to other fuels which may be more efficient.

The relative size of the Supermini, Lower Medium and Upper Medium segments will mean these are important in reducing overall new car CO₂ emissions. Encouraging a shift to more efficient variants of all models would contribute towards lowering emissions of the fleet.

The range and choice available in each segment ensures vehicles fit for the consumer’s individual purpose are available. In every segment low CO₂ emitting choices are available, as seen in the following chart. This shows the range of CO₂ emissions models in each segment have, with the box highlighting where the middle 50%, by volume, of the market sits. The red line shows the UK average. If the lowest emitting model in each segment was the only vehicle bought in 2012, then emissions would have been some 80% lower than actual, at 26.8g/km and if the lowest traditional petrol or diesel model was chosen they would have been over 30% lower at 92g/km. These lowest emitting models however may not be fit for purpose for every buyer type, as issues of cost, availability, load/practicality and such like will also influence the type of car chosen by the consumer. Certain products will be necessary for particular consumer needs, eg requirements for space, load capacity or off-road ability. Typically, some of the higher-emitting models are used less frequently and so do not contribute significantly to overall emissions from cars in use.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Market trends – by fuel type

Diesel fuelled cars typically have CO₂ emissions some 10-20% lower than an equivalent petrol car, and alternatively fuelled vehicles (AFVs) would tend to have emissions below either. The change in the market structure towards diesels and more recently to AFVs has helped change the market’s CO₂ level.

The table below compares the lowest emitting diesel and petrol variant of the best selling model in each segment. These show diesels have lower emitting variants than petrol (although it does not compare other characteristics, eg power/performance or vehicle specification in terms of trim level etc). Compared with the 2011 data (as shown in last year’s report), the variants have all mostly seen reductions in emissions of their lowest emitting petrol and diesel variants, sometimes in the order of 10g/km or more, and the gap between the petrol and diesel variant has fallen.

Comparison of lowest CO₂-emitting diesel and petrol variant of best seller in each segment in 2012 (SMMT)

In 2011, the share of diesel cars rose above that of petrol cars for the first time and in 2012 it rose to a new high of 50.8%, after a 5.8% increase in diesel registrations. Diesel cars accounted for 14.1% of the market in 2000 and 40.2% in 2007. Diesel share has risen due to the increased availability, refinement and development of diesel technology, as well as consumers’ preference for enhanced fuel efficiency.

Diesel share of the UK new car market, 2000-2012 (SMMT)

The growth in private demand and in small cars during 2012 limited the growth in the diesel market, given the diesel share in the Supermini segment is below 20% and Mini segment just 1.1%. Diesel uptake in the Dual Purpose, Executive and Upper Medium segments was over 85% in 2012. The different structures of the petrol and diesel markets have led to the registration-weighted average CO₂ emissions of petrol and diesel cars being very similar.

Diesel share is not expected to change significantly in the short-term, due to vehicle and fuel price differences between diesel and petrol, constraints on diesel fuel refining capacity, the market structure and concerns that diesel vehicle costs may rise to comply with tougher future Euro emission standards. The enhanced efficiency of other types of vehicles may also curb further demand for diesel cars.

Registrations of alternatively-fuelled vehicles

New car CO₂ emissions and registrations by fuel type (AFV = alternatively-fuelled vehicle)

AFV registrations rose by 9.4% in 2012 to a record 27,841 units. They have risen by 67% since 2007, following the introduction of new models and also new types of AFVs. Their market share rose to 1.4% in 2012, up from 1.3% in 2011, 0.7% in 2007 and 0.02% in 2000.

Petrol/electric hybrids represented 85% of the 2012 AFV market. It has taken almost a decade to reach volumes of 23,616 units. Toyota/Lexus accounted for 82% of the petrol/electric market in 2012. The new hybrid Toyota Yaris was key to the growth in 2012.

Pure electric car registrations rose 16.6% to 1,262 units in 2012. The Nissan LEAF accounted for 55% of this sector.

2012 also saw the sale of the extended-range electric Vauxhall Ampera and Chevrolet Volt and the Toyota Prius Plug-in, as well as diesel/electric hybrids available in the market for the first time. AFVs are now available in every segment, so meeting the needs of more consumers. AFV demand remains constrained by the relatively high initial purchase price of products, uncertainty over residual values and buyer caution over new technologies (eg range of electric vehicles). These issues will need to be overcome to enable wider market uptake.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Market trends – Average new car CO₂ emissions across the EU

UK made greater progress than across the EU

Average new car CO₂ emissions in the UK remain above those in the EU, but have converged by falling at a faster rate since 2000. In 2011, the average across the EU15 was 135.1g/km and in the UK 138.1g/km. Emissions in both the EU and UK have seen a step change in performance since 2007.

The European Commission monitors performance at an EU level – see Road transport: Reducing CO2 emissions from vehicles. Portugal has the lowest CO₂ emissions in the EU, 11% below the UK’s at 122.8g/km, closely followed by Denmark, Holland, Belgium and France. Germany has the highest average CO₂ emissions, over 5% above those in the UK at 145.6g/km.

Average new car CO₂ emissions in the EU15 (g/km) – source EC

UK emissions remain above the EU’s due to different market structures. Registrations in some of the lowest CO₂ emitting markets are focused in the small car (Mini and Supermini) segments or where diesel cars take an above average market share.

Diesel penetration in the UK was 50.6% in 2011, compared with 56.1% in the EU15. In some countries diesel share is over 80%. Local taxes will influence the type of vehicle registered, such as fuel duty which in the EU is typically 23% lower for diesel than petrol, whilst in the UK the rates are the same.

Fuel duty rate – UK and EU27 (Source ACEA Tax Guide, at January 2012)

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Influences on new car CO₂ emissions

Report contents: New car CO₂ emissions | Influences on new car CO₂ emissions | Total CO₂ and other emissions | Light Commercial Vehicle CO₂ emissions | Outlook for new car CO₂ emissions

Page contents: Lower CO₂ technology | Consumer information | Regulation | Government influence

• New lower CO₂-emitting technologies, notably new engines, driving down emissions.
• Government can play key role in helping shape the market, eg through taxation.
• New car CO₂ targets to contribute to manufacturers development of low carbon cars.

Many factors help shape the new car market and the average CO₂ emissions of the new car fleet. Trying to assign how much individual measures influence emissions is difficult, especially as the measures interact, but new technologies and the wider choice of low CO₂-emitting variants have been key to driving down emissions across all vehicle types.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Lower CO₂-emitting technologies

Improvements in CO₂ emissions across all fuel types, segments and sales types suggest that developments in vehicle technology and a wider choice of models (notably diesels) have helped deliver the greatest reduction in new car CO₂ emissions. These technologies have also enabled emissions to fall despite a rise in vehicle weight and size. In part, some of the rise in weight and size has come from added safety features and in some instances technologies to reduce other pollutants. The industry is technology neutral and developing a broad range of technologies to help deliver lower CO₂ emitting vehicles – see ‘outlook’ section later in the report for more details.

Technological measures to deliver lower CO₂-emitting vehicles

Consumer information

CO₂ emissions from vehicles have been in the public conscience for more than a decade. CO₂ is used for Vehicle Excise Duty (VED) and Company Car Tax (CCT), manufacturers are required by law to display fuel consumption and CO₂ data for their cars in promotional material and since 2005, the industry has also had a voluntary agreement to show the colour-coded new car efficiency label at point of sale, developed in partnership with the LowCVP. The Government also provides consumers with advice about buying a ‘green’ car.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

New car fuel economy label (VCA)

Consumers may still be more at ease with, or aware of, their vehicle’s MPG (miles per gallon). CO₂ emissions and MPG are directly related, although the conversation factors for petrol and diesel are different. As CO₂ emissions have fallen, so MPG has risen as shown below.

Change in new car CO₂ and MPG, 2000 to 2012

Average new car CO₂ emissions and MPG, 2000-2012 (SMMT)

Regulation

It takes several years to design and bring to market a new product. The introduction of a new engine will be a key component of a new model. Manufacturers face two challenges, reducing CO₂ emissions and regulated emissions. Optimising an engine for one may have adverse impacts upon the other. Euro standards are set in reduce regulated emissions (like NO_x and PM), and as these standards change, as they did with Euro 5 in 2011, so the engines will be developed. Typically, simultaneously CO₂ reducing technologies will be applied at this time.

Manufacturers have developed low CO₂-emitting cars ahead of the European New Car CO₂ Regulation (EC443/2009), which started in 2012. Under this regulation manufacturers face corporate fleet average targets, based in part on vehicle weight, designed to reduce the EU new car fleet average to 130g/km by 2015 (65% of fleet must meet the target in 2012, rising to 100% by 2015). Failure to achieve target will result in fines, up to €95 per gram of CO₂ away from target multiplied by the number of cars registered. Past progress will also have come from action to meet the European voluntary agreement to deliver 140g/km in 2008/09.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Total CO₂ emissions from all cars in use and other emissions

Report contents: New car CO₂ emissions | Influences on new car CO₂ emissions | Total CO₂ and other emissions | Light Commercial Vehicle CO₂ emissions | Outlook for new car CO₂ emissions

Page contents: Context: parc size and distance travelled | Total CO₂ emissions by source | Lifecycle CO₂ emissions | Euro emissions standards | Other pollutants

• New, lower CO₂ emitting, vehicles helping to reduce overall emissions from cars.
• Distance travelled and driver focus on efficiency also contributed to emissions cut.
• New cars are some 18% more efficient than the average car in use.

Cars accounted for 14% of total CO₂ emissions in 2011 (noting the total does not include international aviation and shipping bunkers, unlike in previous CO₂ Reports). This was above the rates seen between 2000-2011, despite the reductions in emissions from cars over this period. Cars accounted for 59.8% of CO₂ emissions from road transport in 2011, down from over 65% in 2000 and 60% in 2010.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Total CO₂ emissions from all cars in use, fuel use, parc and distance travelled

UK total CO₂ emissions by source in 2011

Share by cars and other selected categories (Source DECC)

Total CO₂ emissions from all cars in use (the parc) have fallen in every year since 2000, except 2004. Over this period emissions have fallen 14%. Since 2007 emissions have fallen by 12%, showing the step change over the past four years that is also evident in average new car CO₂ emissions. The reduction in CO₂ emissions in 2011, at 1.8%, was the lowest since 2007 and reflected a rise in distance travelled. Distance travelled is estimated to have fallen in 2012.

CO₂ emissions from all cars in use, parc size and distance travelled

(% change vs 2000 – CO₂ and distance travelled from DECC/DfT, parc figures SMMT)

Emissions of total CO₂ are related to the amount of fuel consumed. This in turn will depend upon vehicle use, including distance travelled, time of use and road conditions. The way the car is driven is also very influential on its efficiency – with eco-driving courses estimated to be able to improve efficiency by some 20% (Source: EST).

The vehicle used will also influence the emissions from the fleet. Replacement of the fleet with new more efficient vehicles will help drive down emissions. Consumers can also minimise emissions by ensuring their vehicle is functioning properly by regularly servicing it, maintaining correct tyre pressures and not carrying items which unnecessarily add weight or reduce the aerodynamic efficiency of their vehicle.

SMMT estimates that the average car in use emitted 164g/km of CO2 in 2012, down 2.6% on 2011. A new car is 18.8% more efficient then the average car in use. This gap has widened in recent years due to the progress in efficiency in new cars. In 2010 the average car in use had emissions within 15% of a new car. Given a car typically has a 14 year lifetime before it is scrapped, a new car is some 30% more efficient than one leaving the parc.

Distribution of parc by CO2

In 2012 some 15% of the car parc emitted 130g/km or less CO2 and 1% emitted 100g/km or less CO2. By comparison the figures for new cars were over 55% and 8.6% respectively. New cars registered in 2012 accounted for 56% of the parc emitting 100g/km or less, with cars registered in the past three years accounting for 93% of those vehicles. For those emitting 130g/km or less the proportion of one year and up to three year old cars was 23.8% and 59.1% respectively.

In 2012 diesel cars represented 32.6% of the parc, having surpassed ten million units for the first time. In 2000 diesels represented just 12% of the parc, but given the growth in new diesel car registrations (they accounted for over half the new market in 2012), their share in the parc has risen rapidly. Alternatively-fuelled cars represented 0.5% of the parc in 2012, up from 0.2% in 2007, with volumes growing by a fifth in 2012 to over 140,000 units.

The slowdown in new car registrations since the recession – from 2.4 million units plus to closer to two million units – has seen the average age of cars in the parc rise to 7.6 years old, from under seven in 2007. Increasing the rate of vehicle replacement and enhancing the uptake, in particular of ultra-low emitting vehicles, will help improve the overall parc’s CO₂ performance.

The improvement in the efficiency of the new car fleet is helping consumers to mitigate the impact of rising fuel costs and reduce their environmental impact. In turn this is helping to reduce the UK’s dependence on imported fossil fuels.

The move to lower CO₂ emitting vehicles is, however, having an impact on government revenue. A more efficient fleet requires less fuel, and so contributes less to the exchequer in fuel duty revenue. The pace of progress in vehicle efficiency has also curbed revenue from CO₂ based taxes such as vehicle excise duty (VED) and company car tax (CCT). This has prompted government to announce plans to raise the CO₂ thresholds on CCT and also review CO₂ thresholds and rates on VED.

Given the subdued economic setting and need to maintain the replacement cycle in the fleet the automotive sector is concerned over radical changes to vehicle taxation, to which consumers and industry alike will not be able to react sufficiently quickly. Changes announced in the 2012 Budget to the CCT regime, notably on plans to remove the electric vehicle exemption in 2015, had an immediate impact on the market and unsettled demand. Electric vehicle volumes fell between April and August, before recovering and growing strongly towards the end of the year.

The replacement cycle has already slowed, due to the recession. The new car market is some 15% below pre-recession levels and is not expected to recover to pre-cession levels – in 2007 it was 2.4 million units – for several years at least.

There is the possibility that as the economy does recover, some of the progress in shifting consumer buying habits and driving styles might be reversed. Industry believes further effort should be made to raise awareness, promote the benefits, and ease concerns about ownership and use of innovative technologies, especially alternatively-fuelled vehicles. Measures to promote eco-driving and effective journey planning should also continue to enhance the progress made in reducing emissions from vehicles in use.

The industry estimates that 85% of the life-cycle emissions of a conventionally powered car are associated with the in-use phase. The automotive sector has also made significant progress in the energy associated with producing vehicles, as shown in SMMT’s annual Sustainability Report – reducing emissions at vehicle assembly plants by over 40% on average over the past decade. At the end of a vehicle’s life 85% by weight is reused recycling or recovered. This is to rise to 95% in 2015.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Lifecycle CO₂ emissions

Light Commercial Vehicle (LCV) CO₂ emissions

Report contents: New car CO₂ emissions | Influences on new car CO₂ emissions | Total CO₂ and other emissions | Light Commercial Vehicle CO₂ emissions | Outlook for new car CO₂ emissions

Page contents: Distribution by CO₂ bands | Context: parc size and distance travelled

• Average new van CO₂ emissions fell 4.9% to 188.7g/km in 2012.
• Market shift to larger, higher CO₂ emitting vehicles may limit progress in reducing emissions.
• EU targets for vans established and UK support for ultra-low emitting vehicles.

SMMT has established a database for van (light commercial vehicles, LCVs, to 3.5 tonnes), and in 2012 99.2% of the registrations had a CO₂ value assigned to them by the vehicle manufacturer. The data shows a sales weighted average of 188.7g/km in 2012, down 4.9% from 2011’s 198.4g/km. SMMT estimates that the complete market average would change by a small amount, eg 1g/km. SMMT previously estimated the 2009 market average at 209g/km, some 10% above the 2012 figure.

Vans are work tools, bought to do a job. Typically the specification of the vehicle will be determined by market need. Over the last decade there has been a shift towards heavier vans, which offer greater flexibility to the user with greater space and payload capacity. Operators would also be looking to minimise costs, as with any aspect of a business, and so aim to buy the most efficient product available, although reliability and residual values will also be important buyer considerations. As such 99.9% of LCVs are diesel powered.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Average CO2 emissions by van type

The number of van registrations fell 7.9% in 2012 on 2011 volumes, to 239,641 units. This was some 30% below the pre-recession peak of 337,736 units in 2007. The van market grew rapidly at the turn of the millennium, as the number of home deliveries and small businesses grew. The rise in distance travelled by vans led to a 23.5% increase in CO₂ emissions from all vans in use between 2000 and 2007. Emissions from the van fleet fell during the recession, but have risen in each of past two years and could rise further as economic growth picks up.

As with cars, there is an EC New LCV CO₂ Regulation which imposes targets for each manufacturer to meet. The EU-wide target is to achieve 175g/km in 2014-17 (with a phase-in, 70% of each manufacturer’s fleet will have to comply in 2014, 75% in 2015, 80% in 2016 and 100% from 2017 onwards) and 147g/km in 2020. The 2017 target represents a 14% reduction compared with the 2007 level (203g/km) and the 2020 target is more than a 15% improvement over the 2017 target. Manufacturers face the same fines as with the New Car CO₂ Regulation, and can also use super-credits, eco-innovations and apply for a derogation if registering less 22,000 units in the EU.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

New LCV and car CO₂ emissions, distribution by CO₂ bands (SMMT)

The market structure means that with 99% of vans below two tonnes emitting less than 147g/km, 22% of the market is already at the 2020 EU target, and 30% meets the 2014-17 target. However, it is getting the key volume markets – predominantly those over 2.8 tonnes – to improve CO₂ emissions that will be key to meeting the targets.

UK average van CO₂ emissions would need to improve by some 3% per annum to the meet the EU 2020 target, were it applied at the UK level. Achieving this goal will be made tougher given the market orientation towards heavier vans and high dieselisation. A move to smaller vans could risk meaning that more vans need to be used to undertake the same work, with net CO₂ emissions increasing. Alternatively-fuelled vehicles could make an impact in particular fields, such as local deliveries. These products are already on the market, but uptake has been slow. Technology transfer between cars and vans is not easy and progress will be impacted by requirements for range, payload and/or capacity.

To assist the transition to lower carbon vehicles, the UK government made electric vans exempt from the ‘van benefit charge’ (currently £3,000 per annum) for five years from April 2010 and the purchase of an electric van is also eligible for 100% first-year writing down allowance. In January 2012 the Plug-In Van Grant was introduced, which gives an incentive of 20% of the van’s list price, up to £8,000, to qualifying vehicles emitting below 75g/km of CO₂.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

CO₂ emissions from all LCVs in use, parc size and distance travelled

(CO₂ and distance travelled from DECC/DfT, parc figures SMMT)

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Outlook for new car CO₂ emissions

Report contents: New car CO₂ emissions | Influences on new car CO₂ emissions | Total CO₂ and other emissions | Light Commercial Vehicle CO₂ emissions | Outlook for new car CO₂ emissions

Page contents: Actual versus EU targets | OEM Consensus Product Roadmap | Analysis of technologies | Environmental and industrial policy | UK production

• EC New Car CO₂ Regulation sets new car fleet average target to 2020.
• Manufacturers developing lower CO₂ emitting vehicles to meet regulation and consumer demand.
• Integrated Approach can support push to lower carbon transport.

The EU New Car CO₂ Regulation has set the pathway for new cars to deliver 95g/km CO₂ fleet average, across the EU, by 2020. Achieving this target will be very challenging and likely to require a significant change in the type of vehicle bought, either with engine downsizing or a shift in propulsion type (eg to alternative fuels) becoming more widespread.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

New car CO₂ emissions, UK actual to 2011 and EU target to 2020

A pick-up in economic growth or a reduction in fuel prices could undermine progress, if this leads to vehicle efficiency becoming less important to consumers. Conversely, greater consumer confidence and spending power would enable a shift to innovative low CO₂ emitting technologies, which may command a price premium.

Industry remains committed to improving the efficiency of vehicles and is the largest spending sector on R&D in Europe. Improvements continue through reducing vehicle weight, aerodynamic and mechanical drag and more efficient ancillary devices and components. Achieving the target will depend on improvements in both traditional internal combustion engined vehicles (petrol and diesel) and the wider availability and uptake of alternatively-fuelled vehicles.

The industry is developing a wide range of alternatively-fuelled vehicles including pure electric, plug-in hybrid, range extender electric vehicles, hydrogen fuel cell electric vehicles and conventional engine/hybrid vehicles. The focus at present is on pure electric and plug-in vehicles, but the future uptake of new models is very difficult to gauge. It will be dependent upon the price, running costs, residual values, fuel costs, consumer acceptance of new technology, comparable performance, range and ease of refuelling compared with traditional petrol and diesel-fuelled cars. Petrol and diesel vehicles will also see further improvements in CO₂ performance, making comparisons constantly variable.

Technology to deliver further improvements to CO₂ emissions

Recognising the need to adjust the portfolio of technologies the industry, working through the Automotive Council, has created road maps for new technologies for cars, CVs and off-highway vehicles. The pathway sees ICEs continue, a move to hybridisation and, in the longer-term, mass market EVs and fuel cell vehicles adding to the portfolio of technologies to realise lower CO₂ emissions from transport.

Automotive Council – OEM Consensus Product Roadmap

Internal Combustion Engines (ICEs)

ICEs will be part of the portfolio of technologies used to deliver a lower CO₂-emitting fleet. They have already made significant progress in reducing emissions over the past 15 years and notably so in recent years. The importance of ICEs is clear, given their current and expected future market dominance till at least 2020.

2012 saw a number of new Mini segment cars enter the market place, such as VW up!, SEAT Mii and Skoda Citigo. Further rivals are likely to appear from other competitors and engine downsizing across all segments is likely to be a feature of the new car market ahead. New, small capacity three-cylinder engines, are appearing in Supermini, Lower and Upper Medium segments. These offer CO₂ savings of their own, and also by being smaller and lighter can enable the designers to make the cars themselves lighter, have better weight distribution and be more aerodynamically advanced. VW’s XL1 diesel car does 314mpg and has been built to showcase how traditionally fuelled cars can offer very impressive fuel efficiency.

The UK is a leading manufacturer of ICEs, producing some 2.5 million per annum. Improving ICEs is one of the top five R&D strategic technologies identified by the Automotive Council. Industry has already made several high profile announcements of investment into this area in the UK.

Alternatively fuelled vehicles (AFVs)

EVs and fuel cell vehicles offer zero CO₂ emissions from the tailpipe. They can also offer other advantages in terms of improved air quality, less noise, greater security of supply of fuels and, in the case of EVs, potentially more convenient ways to refuel (if solutions to plugging in vehicles can be delivered). However, most AFVs have their own barriers to overcome, notably cost, range, refuelling time and lack of refuelling infrastructure. As technological hurdles are overcome and economies of scale are reached, AFVs should become ever more competitive.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Analysis of technologies

The table below highlights some of the pros and cons of different propulsion technologies. It is evident that thee is no standout technology at present and industry remains technology neutral, developing a broad array of solutions and it remains too early to identify a definitive technology pathway at present.

The uptake of AFVs, including EVs, is difficult to forecast given the myriad factors which can influence these emerging technologies. To achieve the UK’s targets the Committee on Climate Change foresees the market for EVs and plug-in hybrids reaching 16% by 2020. Other forecasts are significantly lower. ACEA says original equipment manufacturers (OEMs) expect plug-in vehicle uptake within the range 3-10% in 2020-2025, depending on the infrastructure and supportive measures. Independent forecaster LMC forecast that 8.1% of European personal vehicles in 2021 will be electrified (4.6% mild, full and plug-in hybrids, and 3.5% battery EVs, range extender and fuel cells), whilst Morgan Stanley forecasts the global market for new cars to be 4.5% battery-only EVs by 2025.

It has taken over a decade to get AFV’s market share to 1.3% in the UK and faster progress will prove more challenging, until a tipping point is made through technological progress and affordability. The emergence of new technologies could lead to a shift in the purchasing model, with the balance potentially tilting away from traditional ownership towards more flexible mobility solutions.

BMW Group concluded a consumer trail with more than 600 MINI E vehicles globally, with 40 in the UK, in 2011. They discovered that everyday use of the electric MINIs did not radically differ from the typical driving patterns, in fact the daily journey distance of 29.7 miles was more than the 26.5 miles recorded by the control cars. Users found range limitations did not impact upon the majority of their journeys.

At present ultra-low carbon vehicles rely upon early adopters and benefit from government support, through grants and tax breaks. Government policies must reflect this reality and not be subject to change nor penalise early adopters. Continuation of the Plug-In Car Grant is welcome. The Budget 2012 announcement to remove the zero rating for EVs in CCT in 2015 risks damaging the emerging EV market. A consistent, clear, fair and long-term approach is essential to facilitate manufacturers, businesses and consumers to invest in more efficient technologies, and to ensure the products are competitive and desired.

In the shorter term the focus is on the emergence of these innovative technologies and the further gains internal combustion engines (ICEs) can make. ICEs have delivered far greater improvements in CO₂ emissions than many envisaged. The importance of ICEs is clear, as even under the scenario of 10% of the market being AFVs (up from 1.3% in 2011) and half of those being EVs, average new car CO₂ emissions would only fall by 6% to 130g/km. The ongoing development of mass market power trains is therefore crucial to deliver the market as a whole to achieve short-term targets on CO₂ emissions.

However, at some point ICE development will inevitably approach the practical limits of thermal efficiency, just as developments in light weighting will be constrained by structural safety considerations. At this point new power trains will be required.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Details of some of the new products manufacturers have brought (or intend to bring) to market over the next couple of years are listed below.

This list is not complete and launch dates are subject to change.

Most manufacturers are looking at a range of technologies to bring to the market. Several manufacturers are combining their resources to develop alternatively-fuelled vehicles, such as Ford, Nissan and Mercedes joint project to bring fuel cell vehicles to the market by 2017. PSA and Mercedes have been the first to offer diesel-electric hybrids in some of their ranges, this technology my appear across further of their ranges and is also being developed by other manufacturers. Volvo were the first to introduce a plug-in hybrid diesel to the UK market in 2013, VW is also developing such technology with the VW Cross Blue. Manufacturers not already in the petrol/electric hybrid market are also looking at this aspect of the market, with several manufacturers at the Geneva motor show displaying such models.

Integrated Approach (IA) to help facilitate progress to lower CO₂-emitting vehicles

The shape of the new car fleet can be influenced by a number of factors and industry believes the Integrated Approach is the most efficient way of achieving the environmental goals. The IA is about all stakeholders – manufacturers, fuel providers, consumers, regulators and policy makers – moving cohesively towards aims which benefit society as a whole. Manufacturers need to develop and bring to market more efficient vehicles which meet consumer choice and are competitively priced. Consumers need to buy these products and be realistic in their expectations. Regulators and policy makers can provide a long-term and progressive framework to encourage market transformation (including any provision of infrastructure).

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

Matching environmental and industrial policy

Industry also calls for policy makers to ensure the taxation system and other policies are long-term and support the development of the ultra-low carbon vehicle market. There needs to be an understanding that it will take time for new technologies to become widely accepted by the public, especially during a period of low economic growth and constrained consumer and business spending.

Support for low and ultra-low carbon vehicles is a key area which underpins the UK’s efforts to be a lead market and industrial base for new technology. The UK has great potential to excel and develop an international competitive advantage in this field. Focussed work through the Automotive Council ensures that the industry has a coordinated strategy for the transition to low carbon technologies.

SMMT seeks confirmation from government on its cross-departmental strategy on low carbon vehicles. The strategy update from the Office for Low Emission Vehicles (OLEV) will be a key opportunity for government to demonstrate that it is pursuing a coordinated industrial, environmental and consumer agenda through the development and support of the low carbon vehicle market in the UK. A refocus of government policy on ultra-low carbon vehicle infrastructure is a priority for SMMT, with the current Plugged-In Places programme due to end soon. SMMT calls for government to look at a national charging network and ensure that its energy policy is fully aligned with the move to low carbon vehicles.

In March 2013 UK H₂ Mobility (a joint business and government group) is expected to report in detail on the potential for hydrogen transport in the UK, production pathways and distribution options, fuel cell electric vehicle supply, customer demand and the hydrogen refuelling station requirements. It will then move on to the business case for hydrogen.

There have been concerns that, given the state of public finances, the government may reduce the support for ultra-low carbon vehicles and push up motoring taxes. The industry recognises that motoring taxes are in place to influence vehicle purchase and use choices, as well as to collect revenue for general government spending. A clear, consistent, fair and long-term approach to motoring taxation and support for ultra-low carbon vehicles is necessary to help the market shift.

The Committee on Climate Change, like industry, has called for the Budget 2012 decision to remove the lower rates of Company Car Tax (CCT) for electric vehicles and ultra-low carbon vehicles to be reversed to help these sections of the market to take root. In 2012 over 80% of EVs were registered by fleets and business. These buyers are very sensitive to taxation measures and following the announcement there was a slowdown in EV registrations.

Industry also believes that there should be no radical reform of VED until at least 2020. In Budget 2012, government said it would review VED over the medium term. Industry believes VED should provide a gradual and predictable pathway encouraging lower emitting vehicles, but while the marketplace is fragile the government should not look to impose a financial burden on the sector nor disruptively revise the CO₂ bands. Industry has also called for the proposed change in 2013 to the Writing Down Allowance (from 160g/km to 130g/km CO₂) to be delayed by a year.

Business and consumers have broadly welcomed measures to postpone fuel duty rises, given the general increases in oil prices and concerns over the inflationary impacts of rising fuel prices on consumers and businesses. The announcement that the 3% penalty on diesels in CCT will be removed in 2016 was welcomed. There needs to be acceptance that measures to achieve tighter Euro standards limit the rate of future fuel efficiency.

Biofuels

Biofuels can also help the vehicle fleet deliver CO₂ savings. The Committee on Climate Change supports a rise to an 8% share of biofuel in the petrol/diesel mix (up from around 3% currently), as long as the fuel is sustainably sourced and does not detract from food supplies. Industry is developing cars capable of running on higher blends.

Government procurement policy

Government can also do more to support the move to lower carbon vehicles, through its own vehicle replacement programme, which legally must consider fuel consumption and emissions, and enhanced information provision to consumers.

Local agenda

Local authorities can influence the type of vehicle bought and used in their area, through measures such as CO₂-based road pricing or parking fees. London’s Congestion Charge scheme is arguably the largest and most influential of these types of schemes. At present proposals to allow discounts to cars emitting less than 75g/km of CO₂, rather than 100g/km, are being consulted upon. This would significantly cut the number of eligible vehicles and focus the incentive on ultra-low carbon vehicles.

Car clubs and mobility schemes

Car clubs and mobility solutions are also changing the way people gain access to cars. This enables people to use a car fit for its specific journey purpose, rather than the single vehicle an owner would typically have at their disposal. Such innovative solutions could be designed to cut emissions from the car fleet. Similarly, fleet providers could become more influential in the type of vehicles they make available for users to choose from.

Technical solutions are only as good as the way in which the vehicles are used. There remains significant potential for real world CO₂ savings through ecodriving.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.

UK manufacturers’ performance and outlook

UK vehicle producers have seen output recover from the recession. However, market conditions, especially for those with a reliance on markets in mainland Europe, remained challenging. UK manufacturers have benefitted from having products that were recently launched and well received by the market, as well as increasingly exporting to markets outside the EU.

Vehicle manufacturers have communicated improved vehicle efficiency strongly, to encourage consumers to replace their vehicles and receive the benefits of lower running costs. Several of the UK manufacturers make best-in-class type products for the market. Toyota GB in Burnaston was the first manufacturer in Europe to produce mainstream hybrid models. The hybrid Auris emits just 89g/km. The 1.4 litre diesel Auris also produces less than 100g/km of CO₂. Vauxhall’s Astra, Honda’s Civic and the MINI are also available in sub-100g/km variants. The Nissan Qashqai, offering Dual Purpose styling and driving position, is available in a 119g/km variant.

Production of the electric Nissan LEAF range will start in the UK in 2013. The LEAF is to be powered by batteries produced in Sunderland. Other UK manufacturers are developing hybrid models and several low-volume manufacturers are also developing electric vehicles. The industry in the UK is developing and producing some 2.5 million highly efficient internal combustion engines, with BMW’s Hams Hall plant and Ford’s plants producing some of the new efficient engines to be fitted into vehicles produced in the UK and also overseas. Ford’s acclaimed new three-cylinder engine was designed at the Dunton Technical Centre. The UK automotive sector also has a strong history in light-weighting with Jaguar Land Rover’s use of aluminium and low volume manufacturers, such as Lotus and McLaren, using plastic composites and carbon fibre.

Support for low and ultra-low carbon vehicles is a key area which underpins the UK’s efforts to be a lead market and industrial base for new technology. The UK has great potential to excel and develop an international competitive advantage in this field. Focussed work through the Automotive Council ensures that the industry has a coordinated strategy for the transition to low carbon technologies.

To ensure the UK remains one of the leading destinations for foreign direct investment and to build upon investments already committed by the automotive sector, it is imperative that the overall UK business environment is competitive and provides a distinct rationale and incentive for companies to invest.

Government should look to ensure science and innovation funding reflects key UK industrial strengths, has a scale that is internationally competitive and is delivered through tried and tested routes such as the Technology Strategy Board or centres of excellence.

The creation and support of a joint government-industry funded Automotive Advanced Propulsion Centre of Excellence – a new collaborative R&D facility for the development of low carbon propulsion systems and their supply chains – would help enable the UK to strengthen its position in the supply of low carbon technologies.

Government could also support the Regional Growth Fund and Advanced Manufacturing Supply Chain Fund and putting them on a permanent footing.

SMMT calls on government to reaffirm its cross-departmental strategy on low carbon vehicles through the Office for Low Emission Vehicles (OLEV). The forthcoming strategy update from OLEV will be a key opportunity for government to demonstrate that it is pursuing a coordinated industrial, environmental and consumer agenda through the development and support of the low carbon vehicle market in the UK. A refocus of government policy on ultra-low carbon vehicle infrastructure is a priority for SMMT, where the current Plugged-In Places programme is due to expire. SMMT calls for government to look at a national charging network and ensure that its energy policy is fully aligned behind the move to low carbon vehicles.

The UK motor industry is already well placed to help lead the development and manufacture of lower CO₂ emitting vehicles. It is imperative that environmental policy and industrial strategy agendas work together to ensure that while the UK moves towards a lower carbon economy and lower CO₂ emitting fleet, it is done by enabling domestic manufacturers to help support this transition. This will lead to job and wealth creation, benefitting the wider UK economy and also potentially support further growth in exporting technologies, UK produced vehicles and components to other markets.

Summary

Industry is working to deliver more fuel efficient and lower CO₂ products. This will help contribute to improving the environmental profile of the vehicle fleet and their use will help deliver savings in total CO₂ emissions. The rate of progress and uptake of new technologies will be critical to achieving these aims. It is likely to require consumers to undertake step changes in their choice of vehicle, either through fuel switching or vehicle type, and also to maintain, drive and use that vehicle appropriately. Support for more significant switching of vehicles is likely to require a push by regulators and policy makers to shape consumer demand, but the pathway should be clearly set out and the development progressive rather than radical.

If you wish to read the report offline, click here to download the SMMT New Car CO2 Report 2013 as a PDF. If you would like to continue reading online, use the tabs at the top of the page to navigate between the different sections of the 2013 report.