Peugeot has introduced particulate filters in its new 307, launched this month, but drivers would be more likely to pay extra for the option of a filter on some models if they got something in return, according to Evans.
He said: 'A particulate filter is standard in the new 110 HDi version of the new 307, but it is an option on the 90bhp version and the 1.4-litre diesel version. We are offering a solution to environmental worries about diesel now, but it costs money to put it onto a new car and unless Government gives fiscal incentives, it is difficult to make it happen.
'It is the same for manufacturers. If they were offered a fiscal incentive for hitting the Euro IV target for diesel engines, it would give them the stimulation to go ahead.' Euro IV-compliant diesel engines will escape a planned 3% supplement under the new company car tax regime, the Government revealed last year.