CO2 legislation is top of industry agenda

JATO Dynamics, the world’s leading provider of automotive data and intelligence has commented that the increasingly ambitious targets laid down by the EU in relation to CO2 legislation is bringing significant change to the industry.

As a point now high on the political and social agenda, emissions is currently the hottest topic for the motor industry. “The new 130g emissions legislation has had a mixed reception from the industry,” says Nasir Shah, Sales and Marketing Director at JATO Dynamics. “It’s an emotive subject and highly complex, but one thing is for sure, this is not a topic that is simply going to go away and we are already witnessing an industry undergoing significant change. That was very apparent at the recent Geneva Motor Show.”

“Clearly, the industry has invested vast sums in reducing emissions in recent years and it’s easy to lose sight of the progress that has been made. Progress will continue to be made but it’s hard to imagine the EU objectives can be fully met throughout the industry,” continues Shah. “Objectively, the automotive industry seems to be shouldering a sizeable slice of the environmental burden.”

JATO Dynamics data shows that the 2006 European average figure on CO2 emissions sat at some 30g above the earlier targets laid down by the EU despite the fact that CO2 levels across Europe have fallen year on year since 2001.

The significant investment in hybrid and alternative technologies by OEMs in recent years is testament to the shift in emphasis on product development, but while those products are enjoying some success, many consumers remain unconvinced. According to JATO Dynamics data, the eco-friendly market leading Toyota Prius still has less than a 0.18 percent share of the market.

However, the continued pressure on certain vehicle segments will undoubtedly bring about change. “If taxation law continues to penalise the worst performing vehicles, consumers will vote with their feet,” says Shah. “We are already seeing a trend towards SUVs adopting two-wheel drive as standard fitment, while the traditional large petrol engines in these vehicles are being replaced with more fuel efficient diesel units. So long as buyers can keep the chunky looks, they’re happy to compromise on true off-road capability.”

In the UK, the Chancellor’s declaration that the road fund license will rise to £300 for the worst performing vehicles may well be enough to force numerous consumers into more efficient cars.

With relatively few vehicles currently meeting EU objectives, JATO data highlights the significant challenges facing manufacturers but it says the industry continues to respond to the environmental challenge with admirable conviction.