Changes to the congestion charge will not significantly cut CO2 emissions, nor will they drive down traffic in central London, a motor vehicle manufacturers trade group said.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more


The Society of Motor Manufacturers and Traders (SMMT) argued that families who need larger cars could face bills of up to GBP6,000 a year and has re-stated its concerns following the announcement of changes to the capital’s charging scheme.


From 27 October, cars that emit more than 225g/km CO2 will pay GBP25 to enter the central London charging zone. Band A and B cars, those that emit less than 120 g/km, will be eligible for a 100% discount.


But the SMMT said the mayor [Ken Livingstone, who has often been charged by critics with being ‘anti-car] did not make clear how long discounts would apply. Drivers of cars within bands C to F would pay the current GBP8 a day charge.


“The scheme has been billed as a gas-guzzler tax. However, families with some variants of popular cars like the Ford Mondeo, Renault Espace or Vauxhall Vectra will be forced to pay GBP25 a day just to drive within the zone,” the SMMT said.


“This is totally disproportionate and does not present a consistent signal to consumers,” said new SMMT chief executive Paul Everitt.


“The mayor has made it clear that charges will be varied in future and has not clarified the period in which discounts will apply.


“We can be confident that this means higher charges and the gradual erosion of discounts for band A and B cars. I shall therefore be writing to the mayor seeking a three-year application period before any further changes are made to the scheme.”


Transport for London data suggests a CO2 saving of up to 8,100 tonnes under the changes which, the SMMT said, compares to total ground-based transport emissions in London of 9.7m tonnes.


“In other words, the maximum benefit for the capital would be a CO2 reduction of just 0.084%.


“This compares to average new car CO2 emissions which have come down by 13% in a decade, saving an estimated 1m tonnes of CO2 each year. The biggest improvements have come in the 4×4 (SUV) and MPV (minivan) segments, down 20 and 24% respectively.


“SMMT supports the mayor’s stated aim to reduce congestion. However, independent reports suggest that changes could encourage between 4-10,000 additional cars onto central London roads. That could mean more congestion and delays for drivers within the zone.”

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact