1. SMMT New Car CO 2 Report 9 March 2010

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

3. UK new car CO 2 emissions 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)

4. Total car CO 2 emissions Data to 2008 shows recent reduction in overall car emissions Impact of improved technology, as well as recession Growth in car CO 2 emissions, fuel use, parc and distance travelled (Source DECC, DFT,SMMT)

5. 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

6. Scrappage Incentive Scheme 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)

7. 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 CO 2 emissions by segment, 2009 versus ‘08 and ’97 (Source SMMT)

8. Distribution of CO 2 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 CO 2 bands (Source SMMT)

9. 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)

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

11. Conclusions 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.

12. Thank you Matthew Croucher mcroucher@smmt.co.uk

13. SMMT New Car CO 2 Report 9 March 2010

14. Panel discussion 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