2
9 March 2010

•
•
• Average new car CO
2
Total new car CO
2 performance emissions
Impact on 2009 new car CO
2
• Scrappage Incentive Scheme performance
• 2009 CO
2 performance trends
• Outlook for UK new car CO
2 emissions

2
• Continuous improvement, to new low of 149.5g/km
• 5.4% improvement on 2008 and 21.2% on 1997
UK average new car CO
2 emissions (Source SMMT)
190
185
180
175
170
165
160
155
150
145
140
97 98 99 00 01 02 03 04 05 06 07 08 09

2
• Data to 2008 shows recent reduction in overall car emissions
• Impact of improved technology, as well as recession
Growth in car CO
2
120 emissions, fuel use, parc and distance travelled
(Source DECC, DFT ,SMMT)
CO2 emissions
115
Fuel used
Parc
Distance travelled
110
105
100
95
97 98 99 00 01 02 03 04 05 06 07 08

• Improved technology – more choice of lower emitters
• Recession – curbed demand for high emitters
• Scrappage incentive scheme
• Fuel prices – higher, encourages efficiency
• Government policy, notably taxation
• Consumer information – e.g. colour coded fuel label
• Consumer preference – shift to mini/supermini segment

• Strong take up, registrations largely mini/superminis
• SIS cars lower than average CO
2 emissions, at 133.3g/km
CO
2 emissions of car through SIS, total market and scrapped car (Source SMMT)
200
182,3
175
147,8
150
133,3
125
100
75
50
25
0
SIS cars Average new car Scrapped car

• All segments seen improvements
• Mini best gain in year, -6.7%. MPVs best versus 1997, -28.6%
Change in new car CO
2
0% emissions by segment, 2009 versus ‘08 and ’97 (Source SMMT)
-5%
-10%
-15%
-20%
-25%
-30% vs '08 vs '97

2
• Continuous shift to the left, into lower emitting models
• 20% market sub 120g/km, and 47% sub 140g/km
Distribution of the new car market by 5g/km CO
2 bands (Source SMMT)
14%
2009 2008 1997
12%
10%
8%
6%
4%
2%
0%

• Move to lower VED bands, E (131-140g/km) most popular
• Bands K-M (225g/km +) share now 5.8%, was 28.1% in ‘97
Distribution of the new car market by VED bands (Source SMMT)
A B C D E F G H I J K L M
2009
2008
2000
1997
0% 20% 40% 60% 80% 100%

2
• New car CO
2 regulation – 130g/km by 2015 in EU
• Industry action, government measures, consumer sentiment
NAIGT technology road map (Source NAIGT)

• Further significant progress being made.
• Net impact on reducing total CO
2 emissions.
• Short term - progress may be tempered by economic recovery and removal of the SIS.
• Long term - VM response to regulation, national government measures and changing consumer sentiment to lower emissions.
• Integrated approach – industry (vehicle and fuel suppliers), government, and consumers to pull together for change. Automotive Council set up to aid process.
•
• Stability and predictability in taxation/regulation desired.
Report does also introduce van CO
2 emissions.

Matthew Croucher mcroucher@smmt.co.uk

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9 March 2010

Rt Hon Pat McFadden MP, minister for business, innovation and skills
Robert Goodwill MP, Conservative shadow transport minister
Norman Baker MP, Liberal Democrat shadow transport secretary
Paul Everitt, SMMT