Trend toward efficient cars

Car buying patterns have moved toward more energy-efficient cars since the introduction of the new Vehicle Registration Tax (VRT) and motor tax rates for private cars, according to a report published today.

The Energy in Transport 2009 report from Sustainable Energy Ireland (SEI) found that private cars in the most efficient emission bands (A, B and C) made up 73 per cent of new cars bought after the introduction of the new rates in July 2008, compared with just 43 per cent for the first six months of 2008.

The SEI noted that this trend has not entailed a move towards smaller engine sizes, however. Instead, there has been a marked move towards diesel-fuelled cars, with diesel cars doubling their share of sales between the first and second halves of 2008.

Even with lower vehicle sales in the first half of 2009, the shift towards more efficient cars has held firm, with energy-efficient cars making up 78 per cent of new cars purchased and diesel cars comprising 56 per cent of new cars bought.

The average CO2 emissions of new cars purchased in the 12 months between July 2008 and 2009 have fallen by 12 per cent.

There was a 6.7 per cent reduction in road freight energy use in 2008, reflecting the downturn in construction activity and the broader economy. This compares with strong average growth of 8.2 per cent per annum between 1990 and 2007.

Ireland’s total vehicle fleet continues to grow with almost 2.5 million vehicles in the State in 2008, a 2.3 per cent increase on 2007. Most vehicles were private cars, accounting for 77 per cent in 2008, the report found, while goods vehicles comprised 14 per cent of the total vehicle fleet.

Energy use in transport grew by an average of 6.3 per cent per annum between 1990 and 2007.

The head of strategy at SEI, Brian Motherway, said the car tax changes have altered buying patterns and the insitiute expectes to see this trend continue when the sector recovers and purchasing grows.

"It is positive to see that this policy intervention is succeeding in encouraging consumers towards more energy efficient cars," he said. "However, transport remains a significant sector for energy use and carbon emissions, and needs a continuing focus.”

The SEI is the statutory authority charged with promoting and assisting the development of sustainable energy.