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The Bleak Picture of the Car Industry

27 January 2020

The latest sales figures of the car industry may appear positive however, under closer scrutiny, they are not so promising. Findings from the Society of Motor Manufacturers and Traders (SMMT), show a fall of 21.8% in diesel new car sales and in contrast, hybrid electric vehicles (HEV) sales have increased 17.1% and battery electric vehicles (BEV) has also risen by 144%. However, are these figures misleading?  

Despite the strong growth of BEV vehicles, they only have a 1.6% volume market share, some way off the Government’s target of 50-70% by 2030. The fall on diesel car sales is also another area that isn’t entirely positive. LMC Automotive found that new diesel cars emit 18% less carbon than their petrol equivalents. They tracked the fall of diesel car sales back to 2015 with the VW emissions scandal which has caused lasting damage to consumer confidence in diesel vehicles.

These findings mean that the average CO2 emissions per kilometre for UK cars has risen for the third successive year to 127.9 grams, which is some way off EU targets of 95 grams.

Although the short-term picture for the car industry is not looking positive, that does not mean its long-term prospects will carry the same fate. LMC Automotive is forecasting that electric cars will reach the same price as petrol cars by 2026 which should lead to their mass adoption potentially keeping the Government’s target on track for 2030.  

At Marshall Leasing we recognise that as suppliers of a wide range of vehicles, we have an important role to play in helping your company reduce your emissions. Therefore, we work in partnership with the Energy Savings Trust which has been set up by the Government. The aim of the trust is to cut CO2 emissions by promoting the sustainable and efficient use of energy in the car industry. To find out more about our green policy visit our website here or call us directly on 01480 414541.

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