INTEGRATED APPROACH WILL BOOST PROGRESS WITH CO2
24 January 2007 - SMMT

SMMT today reveals headline CO2 figures for the 2006 new car market. SMMT today reveals headline CO2 figures for the 2006 new car market.

SMMT reveals average new car CO2 reductions for the 2006 market
… and makes the case for an integrated approach to boost progress

The average new car sold last year emitted 167.2 g/km. That was an improvement of 1.3 per cent on 2005 figures and 11.9 per cent down on average CO2 for the 1997 market.

A more detailed report will be published in the Spring.

Note: CO2 market data for ''all new cars'' available from 1997, earliest data for private / fleet split 2001

While progress continues to be made in the UK – and across Europe where the industry is moving towards 2008 CO2 reduction targets1 – SMMT believes more can be done to drive the market for cleaner vehicles.

''Market transformation is not just about bringing new technology to the showroom'', explained SMMT chief executive Christopher Macgowan. ''It''s about encouraging consumers to think carefully about their choice of vehicle, providing incentives where needed and ensuring alternative fuels are widely available and competitively priced.

''Take E85 bioethanol for example. Mainstream bioethanol cars are on the market now, yet there are only a dozen or so filling stations across the UK. Plus, it''s no cheaper at the pump for drivers. That makes no sense. We need to work together in partnership with government, fuel companies and customers to address this.''

Other barriers to progress include things like the three per cent company car tax surcharge for new diesel cars. SMMT calls for an immediate end to this disincentive since diesel cars emit up to 30 per cent less CO2 than petrol equivalents. Reductions in the fleet sector slowed to just 0.6 per cent last year and the ''diesel disincentive'' is one of the reasons why the UK still lags behind the rest of Europe on diesel market penetration (38.3 per cent v 50.6 per cent in 2006).

Incentives are also needed to boost sales of the lowest carbon cars. The Low Carbon Car Fund was shelved following the collapse of its predecessor - Powershift grants. Government said that there was no evidence that grants drive demand for cleaner cars. However, the decline in the fledgling LPG market following Powershift''s demise shows this is not the case. From growth to 3,185 units back in 2003, the market for new LPG cars collapsed to just 39 new cars last year.

On better consumer information, the motor industry can take credit for last year''s CO2 reduction in the private sector (2.1 per cent) following introduction of its colour-coded CO2 label2. This has been displayed in showrooms since September 2005, giving buyers more information at the point of sale, allowing simple car-by-car comparisons.

It also includes annual running cost information, making a clear association between lower costs and cleaner motoring. SMMT believes this is crucial since the economic case for lower carbon cars is more persuasive to buyers than a simple appeal to go green.

Macgowan concluded, ''This thing we call an integrated approach is not about empty words; we are calling for practical measures, based on the principle that working together will deliver the greatest benefits for the environment, without crippling the European car industry with unrealistic targets and disproportionate costs. This approach was endorsed by the European CARS21 group3 last year and we in the UK fully support it.''

WWW.SMMT.CO.UK

More News
  For January 2007
  From SMMT
  For Research
  Driver247.com Home Page