SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT New Car CO2 Report Launch Event

SMMT, London

18 April 2012

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Event outline

• Welcome and introductions by Paul Everitt, Chief Executive, SMMT and Dan Milmo, Industrial Editor, The Guardian.

• Overview of SMMT’s New Car CO2 Report 2012 by Matt Croucher, Economics Manager, SMMT.

• Comments from Richard Bruce, Director, UK government’s Office for Low Emission Vehicles and Doug Parr, Chief Scientist, Greenpeace UK.

• Open Q&A session chaired by Dan Milmo, Industrial Editor, The Guardian.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

Overview of SMMT’s New Car CO2 Report 2012

Matthew Croucher – mcroucher@smmt.co.uk

18 April 2012

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4

Making significant progress, but challenges ahead

Average new car CO2 – 1997-2011 (SMMT)

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11120

130

140

150

160

170

180

190

189.

8

188.

4

185.

0

181.

0

177.

6

174.

2

172.

1

171.

4

169.

4

167.

2

164.

9

158.

0

149.

5

144.

2

138.

1

Year

CO

2 g/

km

• UK average new car CO2 – 138.1g/km in 2011. • Continuous improvement, pace picked up in last 4 years.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5

Influences on CO2 emissions

Technological measures to deliver lower CO2–emitting vehicles • Improvements in internal combustion engine (ICE).• Development of alternatively fuelled vehicles (AFV).• Other influences – aerodynamics, light weighting, efficient tyres etc.• Non-test cycle measures, eg gear shift indicators and satellite navigation devices.

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6

2011: A break-through year – breaking 140g/km

Diesel share by segment (SMMT) Registrations of AFVs (SMMT)

• Diesel cars outsell petrol (diesels 15-20% lower CO2 emitting).• Alternatively fuelled cars break 25,000 registrations.• ‘Mainstream’ electric vehicles on sale.• All segments post reductions in average CO2 emissions.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%2000 2010 2011

Segment

Dies

el s

hare

00 01 02 03 04 05 06 07 08 09 10 110

5,000

10,000

15,000

20,000

25,000

30,000

Electric Petrol/alcohol Diesel/electricPetrol/electric Petrol/gas

Year

New

car

regi

stra

tions

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7

Distribution of the new car market by CO2

New car market by CO2 bands (SMMT)

• Shift into lower CO2 emitting vehicles.• 46.8% of the market below 130g/km and 3.4% below 100g/km,

compared with 0.9% and 0% in 2000.su

b 10

0

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

270

280

290

300

-2%

0%

2%

4%

6%

8%

10%

12%

2000 2010

g/km

Mar

ket s

hare

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8

Distribution of the new car market by VED bands

New car market by VED bands (SMMT)

• ‘E’ band most populated in 2011, was ‘G’ band in 2000.• 3.4% of the market in ‘A’ band in 2011, was 0.0% in 2000.• Just 0.6% of market in top band in 2011, was 4.8% in 2000.

2000

2007

2010

2011

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

A (Upto 100)B (101-110)C (111-120)D (121-130)E (131-140)F (141-150)G (151-165)H (166-175)I (176-185)J (186-200)K (201-225)L (226-255)M (Over 255)

Market share

Note all data split by current 13 band VED system

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9

Light commercial vehicle (LCV) performance

Average UK new car and LCV market distribution by CO2 – 2011 (SMMT)

• SMMT developing LCV CO2 database. • UK average new LCV CO2 – estimated to be 199.2g/km in 2011. • LCV face EU CO2 targets – 175g/km in 2014-17, 147g/km by 2020.

sub

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

270

280

290

300

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%LCVs Cars

g/km

Mar

ket s

hare

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10

Making real world improvements

CO2 emissions from all cars in use (DECC)

• Total CO2 from all cars in use down. – 2010 down 10.2% on 2000 and 3.3% on 2009.

• Faster fleet replacement aids CO2 reductions from all cars in use.

00 01 02 03 04 05 06 07 08 09 1085

90

95

100

105

110

115CO2 Parc Distance travelled

Year

Inde

x, 2

000

= 10

0

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11

Challenges ahead

Average UK new car and car in use CO2 , and pan EU targets to 2020 (SMMT/EU)

• EU new car CO2 targets – 130g/km in 2012-15, 95g/km by 2020. • Market acceptance of ultra-low carbon vehicles, especially AFVs.• Integrated approach needed to support shift to lower carbon fleet.

Average car in use 2010

1997 UK new car 2000 UK new car 2011 UK new car 2012-15 EU new car target

2020 EU new car target

75

100

125

150

175

200

169.3

189.8181.0

138.1130.0

95.0

CO2g

/km

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT New Car CO2 Report 2012 Launch Event

Full report available at: www.smmt.co.uk/CO2report

18 April 2012

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT New Car CO2 Report 2012 Launch Event

Richard Bruce, Office for Low Emission Vehicles (OLEV)

18 April 2012

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT New Car CO2 Report 2012 Launch Event

Doug Parr, Greenpeace

18 April 2012

Energy Intensity Indicators by sector

From Energy Efficiency Deployment Office Evidence Brief, Fig 4.2

ICCT on passenger

vehicle regulation, Jan 2011

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

SMMT New Car CO2 Report 2012 Launch Event

Full report available at: www.smmt.co.uk/CO2report

18 April 2012