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

THE UK ROADMAP TO ULTRA LOW CARBON

CHALLENGE BIBENDUM

MAY 2011

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2

Automotive Council Consensus Product Road MapThe future direction for low carbon technology products

Mass Market EV Technology Niche EVs

20202000 2010 2030

Full Hybrid

Micro/Mild Hybrid

130 95 TBDEU Fleet Average CO2 Targets (g/km)

2040

Plug-In Hybrid

IC Engine and Transmission innovations (gasoline/diesel/gas/renewables)

Demonstrators Fuel Cell Vehicle

DemonstratorsCharging Infrastructure

H2 Infrastructure

Energy Storage Breakthrough

Energy Storage Breakthrough

Vehicle Weight and Drag Reduction

Fuel Cell & H2 Supply/Storage Breakthrough

Source: Automotive Council 2010

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 3

Five UK R&D priorities for passenger vehicles

Internal Combustion

Engines

Energy Storage and

Energy Management

Intelligent Transport Systems

Lightweight Vehicle and Powertrain Structures

Electric Machines and Power Electronics

Strategic Technologies for UK Auto

Industry

• A common industry vision

• Driving industry and government cooperation

• Informing academic research agendas

• R&D connectivity throughout the automotive sector

Source: Automotive Council 2010

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4

UK Government support for priority technologiesR&D support• £200m Government investment in network of Technology and

Innovation Centres (launched 2011)• TSB budget 2008 to 2011 of £711m for innovation investment.

– Recent £11m competition call for innovations in industry specified ‘sticky technology’ areas

• £45m for nine new university centres for innovative manufacturing funded via EPSRC (launched 2011)

• EPSRC directing £760m during 2011/12 to research projects, over £80m in manufacturing alone

Manufacturing support• £1.4bn Regional Growth Fund to promote industry development

and job creation across England• £57m for the Manufacturing Advisory Service over next 3 years• £20m TSB/ OLEV supply chain competition (total over £50m) • Advanced Manufacturing TIC, the first announced

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5

UK Government support for priority technologies

Market Support• £300m consumer incentives including

£43m until March 2012 for reduced price vehicles £30m infrastructure programme for 8 Plugged-on Places

locations• £45m Green Bus procurement fund• £25m ultra low carbon vehicle demonstration programme• Vehicle Excise Duty exemption• 1st year capital allowances for fleet vehicles and vans• 0% Benefit in kind/ company car tax for 5 years• Lower rate of VAT for domestic electricity

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6

UK average new car CO2 emissionsAverage of 144.2g/km in 2010 – 3.5% down on 2009 and 20.3% on 2000.

UK average new car CO2 emissions (Source SMMT)

140

145

150

155

160

165

170

175

180

185

190

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

g/km

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7

Impact on total emissionsTotal CO2 emissions from cars fell 2.7% in 2009 and are 7.8% below 2000 levels.Reduction despite increase in distance travelled and parc size since 2000.

Growth in total car CO2 emissions, parc and distance travelled (Source DECC/SMMT/DfT)

90

95

100

105

110

115

120

00 01 02 03 04 05 06 07 08 09

Inde

x, 2

000

= 10

0

Year

CO2 Parc Distance travelled

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8

Distribution of market by CO2 performanceShift to lower emitting cars (shift in chart to the left). 56.5% market by volume sub 140g/km.

Distribution of the new car market by 5g/km CO2 bands (Source SMMT)

0%

2%

4%

6%

8%

10%

12%

14%su

b 10

011

012

013

014

015

016

017

018

019

020

021

022

023

024

025

026

027

028

029

030

0

Mar

ket s

hare

%

CO2 g/km

2000 2009 2010

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9

Performance by segmentAll segments seen strong reductions in average new car CO2 emissions.

Change in average CO2 emissions by segment (Source SMMT)

Mini

Su-per-mini

Lower medium

Upper medium Executive

Luxury saloon

Specialist sports

Dual purpose MPV Total

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

vs '09 vs '00

% c

hang

e in

CO

2g/k

m in

201

0 vs

200

9 an

d 20

00

Society of Motor Manufacturers and Traders LimitedForbes House, Halkin Street, London, SW1X 7DSwww.smmt.co.uk

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