Average carbon dioxide emissions for new leased cars in the UK have reached their highest level for five years as drivers switch from diesel to petrol, according to a new report from the British Vehicle Rental and Leasing Association.
Emissions for all new leased cars are now 118g/km and have risen 7% since 2017, according to its Q1 2019 Quarterly Leasing Survey.
The trend is expected to continue as, for the first time, petrol’s share of the new car leasing market now exceeds diesel.
The share of new lease car registrations taken by diesel has fallen to 40% during the first quarter of the year, while petrol’s share rose to 52%.
Diesel engines typically emit lower levels of CO2, which made them popular as European governments introduced vehicle taxes based on CO2 emissions in a bid to reduce emissions of greenhouse gases, but demand was affected by negative publicity surrounding the health impact of their emissions in urban environments, particularly from oxides of nitrogen. In the UK, higher company car taxes are imposed on diesel vehicles unless they meet the most stringent emissions standards (RDE2).
Another driver of increased petrol demand is a growing number of personal leasing customers in the market, who are more likely to opt for a petrol model.
The average new car leased by a personal contract hire customer produces around 137g/km of CO2, compared to the average company car, which produces 116g/km.
Gerry Keaney (pictured), chief executive of the BVRLA, said: “The company car fleet is still the cleanest on the road. The average new personal lease car emits 18% more CO2 than its company car equivalent.”
Keaney also raised concern about a fall in plug-in hybrid registrations as a result of supply shortages.
He added: “The government needs to support this market and should reinstate the Plug-in Car Grant for the latest, more efficient plug-in hybrid models.”
The Plug-in Car Grant is a government fund designed to offset the higher cost of ultra-low emission vehicles.
Last year, it was cut from £4,500 to £3,000 and removed entirely for hybrid cars with a range of less than 70 zero-emission miles.
