The growth in demand for electric, hybrid and hydrogen cars stalled last year as consumers opted for sports utility vehicles (SUVs) over smaller cars, according to latest industry data.
The annual report from the Society for Motor Manufacturers and Traders (SMMT) on the automotive sector’s progress in reducing carbon emissions from new cars reveals that total registrations in alternatively fuelled vehicles (AFVs) rose by 22.2% to 88,919 in 2016. However, this represents a slowing in growth, from 40.3% in 2015 to 22.2% last year.
Source: SMMT
Nonetheless, the UK remains Europe’s largest market for low-emission cars, accounting for almost a quarter (23.8%) of EU electric and plug-in hybrid registrations in 2016.
The SMMT said the softening demand for more efficient vehicles was due to rising consumer prosperity and low fuel prices.
Across all car types, average CO2 per new car registered in the UK last year fell to 120.1g/km, a reduction of 1.1% on 2015, and down more than a third since 2000. Emissions from new van registration declined by 1.9% to 173.7g/km, ahead of the 2017 deadline for the pan-European target of 175g/km.
UK motorists registered a record number of diesel cars in 2016, but market share for this fuel type declined by 0.8 percentage points in 2016, to 47.7%. The SMMT is concerned that the criticism of diesel cars, which typically emit 20% less CO2 than petrol cars, does not distinguish between old models and the newer, cleaner ones, and that policies designed to curb use of diesel vehicles could damage CO2 reduction efforts.
If these the UK’s contribution towards the EU target of 95g/km average CO2 in 2021 will become tougher, requiring a 20.9% cut in emissions over the next five years, or 4.6% per year, the trade body warned.
Changes to vehicle excise duty from 1 April could also impact the incentive for buying low-emission cars, it fears. Under the new system, two-thirds of low-emission vehicles that currently paying nothing will be subject to an annual charge of £130, in addition to varying levels of first-year tax.
The SMMT also highlighted the fact that older vehicles with high CO2 emissions account for more than 90% of vehicles in use. Policies to tackle the impact of transport on climate change must include these, it said.
The trade body also said the government should encourage consumers to replace older models with AFVs; improve transport infrastructure; and encourage drivers to drive more efficiently.
Mike Hawes, chief executive of the SMMT, said: ‘Modern low-emission diesels and AFVs such as plug-ins, hydrogen and hybrids must be encouraged with long term incentives.
‘Turning our back on any of these will undermine progress on CO2 targets as well as air quality objectives. The UK has a successful track record in encouraging these new technologies but this must be maintained through a consistent approach to fiscal and other incentive.’
James Beard, climate change specialist at WWF, said the way to reduce both carbon emissions and air pollution is to shift away from fossil-fuel powered vehicles as quickly as possible. ‘The UK government needs to demonstrate its mettle by setting out a credible plan for transforming transport in its forthcoming plan to reduce emissions,’ he said.
Julia Poliscanova, manager of clean vehicles and air quality at campaign group T&E, disagreed with the SMMT’s analysis. CO2 emissions from an average petrol car are now very close to the CO2 emissions from an average diesel car, so even if we were swapping the declining diesel share with the petrol fleet, the CO2 penalty would be negligible.
However, since CO2 emissions from alternative vehicles are much lower than either diesel or petrol, and the share of these vehicles in the UK fleet is growing, the most significant emission reductions will be achieved from new technologies, not combustion engines.
‘Therefore, at least some of the diesel replacement will happen thanks to hybrids and electric vehicles, bringing the overall Co2 emissions much lower than if the current diesel share was maintained,’ she said.
