New car CO2 emissions hit highest point since 2013

Government legislation is blamed by SMMT chief executive Mike Hawes, who said: “The industry shares government’s vision of a low-carbon future and is investing to get us there – but we can’t do it overnight; nor can we do it alone.

“The anti-diesel agenda has set back progress on climate change, while electric vehicle demand remains disappointingly low amid consumer concerns around charging infrastructure availability and affordability.”

Last year, the government dealt a double blow to diesel, announcing that all-new non-electrified petrol and diesel car sales will be halted from 2040 onwards before confirming a tax hike for diesel cars in the autumn budget.

This anti-diesel legislation and the messages that accompanied them prompted a fall in consumer confidence. The knock-on effect has seen manufacturers begin to withdraw diesels from their line-ups. Recently, Porsche stopped production of its current diesel models, and Fiat Chrysler revealed intentions to abandon diesel altogether by 2022.

Despite rapid growth in EV and hybrid car demand, total volume for the segment was still far too small to offset the drop in diesel demand. Demand for plug-in vehicles rose by 34.8% last year, yet zero-emission pure-electric car sales still accounted for just 13,500 vehicles – a tiny proportion of the 2.5 million total car sales across the year.

Hawes said this illustrated the need for further investment in cleaner combustion engine technology. He cited business fleets, which were previously seen as the biggest demand for diesel cars, as relevant places for diesel to still exist in large numbers.

“To accelerate fleet renewal, motorists must have the confidence to invest in the cleanest cars for their needs – however they are powered,” he said. “A consistent approach to incentives and tax and greater investment in charging infrastructure will be critical.

“Now, more than ever, we need a strategy that allows manufacturers time to invest, innovate and sell competitively, and which gives consumers every incentive to adapt.”