A recent investigation into vehicle emissions
by data provider JATO shows that car users continue to demand more
fuel efficient – and therefore greener – vehicles.
The report, A Review of CO2 Car
Emissions across Europe, links low average emissions with
fragile economies, with fiscally damaged Portugal pushing ahead of
France last year to become Europe’s most ‘fuel conscious’ country –
a trend easily linked with its consumers’ desire to keep down fuel
costs.
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Global vice-president for research at JATO,
Gareth Hession, believes that if the UK had come out of recession
in a “much bigger way”, the country’s emissions in 2010 would have
been heavier, adding that the cost of fuel is the biggest factor
behind reduced emissions.
In the current climate, Hession contends,
consumers are paying more attention to specification rather than
seeking big engines – and that successful brands such as Mini and
BMW are doing well on margins by selling those options. This, he
says, helps to explain why the 500 is more profitable for Fiat than
the Panda.
Hession says: “The move towards smaller cars
applies both to UK fleets as well as to consumers. The UK tax
regime benefits manufacturers who reduce CO2 and favours
individuals who opt for low-emission vehicles.”
He added that with the growing popularity of
salary sacrifice schemes, companies are increasingly likely to want
to offer cars in lieu of salary as being a highly tax-efficient
solution to remunerating their employees. “Point of sale
opportunities will arise in this scenario,” Hession concludes.
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