SMMT New Car CO2 Report

9 March 2010

Contents

• Average new car CO2 performance

• Total new car CO2 emissions

• Impact on 2009 new car CO2 performance

• Scrappage Incentive Scheme• 2009 CO2 performance trends

• Outlook for UK new car CO2 emissions

UK new car CO2 emissions• Continuous improvement, to new low of 149.5g/km

• 5.4% improvement on 2008 and 21.2% on 1997

UK average new car CO2 emissions (Source SMMT)

97 98 99 00 01 02 03 04 05 06 07 08 09140

145

150

155

160

165

170

175

180

185

190

CO

2 g

/km

Total car CO2 emissions

• Data to 2008 shows recent reduction in overall car emissions

• Impact of improved technology, as well as recession

Growth in car CO2 emissions, fuel use, parc and distance travelled (Source DECC, DFT ,SMMT)

97 98 99 00 01 02 03 04 05 06 07 0895

100

105

110

115

120

CO2 emissions

Fuel used

Parc

Distance travelled

1997 =

100

Impact on 2009 performance

• 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

Scrappage Incentive Scheme• Strong take up, registrations largely mini/superminis

• SIS cars lower than average CO2 emissions, at 133.3g/km

CO2 emissions of car through SIS, total market and scrapped car (Source SMMT)

SIS cars Average new car Scrapped car0

25

50

75

100

125

150

175

200

133.3

147.8

182.3

CO

2 g

/km

Change in emissions by segment

• All segments seen improvements

• Mini best gain in year, -6.7%. MPVs best versus 1997, -28.6%

Change in new car CO2 emissions by segment, 2009 versus ‘08 and ’97 (Source SMMT)M

ini

Supe

rmin

i

Low

er m

ediu

m

Uppe

r med

ium

Exec

utive

Luxu

ry sa

loon

Spec

ialis

t spo

rts

Dual

pur

pose

4x4

MPV

Tota

l

-30%

-25%

-20%

-15%

-10%

-5%

0%

vs '08 vs '97

% c

hange

Distribution of CO2 emissions

• 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 CO2 bands (Source SMMT)

<= 1

00 110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

270

280

290

300

0%

2%

4%

6%

8%

10%

12%

14%

2009 2008 1997

Share

of

tota

l

Distribution by VED

• 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)

1997

2000

2008

2009

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

A B C D E F G H I J K L M

Outlook for new car CO2 emissions

• New car CO2 regulation – 130g/km by 2015 in EU

• Industry action, government measures, consumer sentiment

NAIGT technology road map (Source NAIGT)

Conclusions

• Further significant progress being made.• Net impact on reducing total CO2 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 CO2 emissions.

Thank you

Matthew Crouchermcroucher@smmt.co.uk

SMMT New Car CO2 Report

9 March 2010

Panel discussionRt 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