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30/08/2019
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Company cars maintain their ‘cleanest’ credentials despite rise in CO2

Average CO2 figures for new leased cars have risen to a five-year high, according to the latest BVRLA Quarterly Leasing Survey.


The BVRLA’s Q1 2019 Quarterly Leasing Survey has average CO2 for all new leased cars at 118g/km. This figure has risen 7% since early 2017 and is set to carry on rising due to the increasing share of petrol and personal lease vehicles and as the inflationary impact of more accurate WLTP emissions testing takes effect.

The contrast between emissions for new personal contract hire and business contract hire vehicles is a stark one, with PCH cars hitting 137g/km and BCH cars coming in at 116g/km CO2.

This rise in emissions is being mirrored in the wider new car market, where average CO2 emissions are also at a five-year high, of 129g/km.

“The company car fleet is still the cleanest on the road, and there are signs that it is finally getting the recognition it deserves,” said BVRLA Chief Executive, Gerry Keaney.

“The WLTP test regime has been pushing up average emission figures, so we welcome the Government’s recent decision to limit this impact on company car tax (CCT) rates. When you combine this with the increasing availability of RDE2-compliant diesels, which bring a further 4% reduction in CCT, the future looks much brighter for the company car market than it did a few weeks ago.”

”The average new personal lease car emits 18% more CO2 than its company car equivalent, and this revised CCT regime makes it easier for fleets and drivers to make the right choices.”

The latest survey threw up another milestone as petrol’s share of the new leased car market passed 50% for the first time, hitting 52% for the first three months of 2019. New diesel registrations fell by 15% year on year, delivering a market share of 40%. It was a mixed picture for plug-in vehicles, with the hybrid share falling to 5% but pure EV registrations obtaining a share of over 1% for the first time.

“There is no sign of the move from diesel to petrol abating, but we are concerned about the decline in plug-in hybrid registrations,” added Keaney.

“Members are reporting some major supply shortages for the latest long-range EVs and plug-in hybrids have a massive role to play in providing zero-emission capable vehicles that can address legitimate range anxiety issues. The Government needs to support this market and should reinstate the Plug-in Car Grant for the latest, more efficient plug-in hybrid models.”

More market insight into the vehicle leasing market can be accessed by downloading the BVRLA’s Q1 Quarterly Leasing Survey infographic.


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