Ford has seen sales of its sub 120g/km vehicles rise by 38% year-on-year and it expects to end the year on around 40,000 cars, 15% of its UK total.

With 28 vehicles in its range emitting fewer than 120g/km of CO2, the carmaker believes it is in a strong position to take advantage of the growing consumer concern over the environment allied to rising taxation and fuel costs.

“CO2 is becoming a business case” said Ford UK managing director Roelant de Waard.

Ford has launched a series of ‘summer smart driving challenges’ at six locations around the UK.

Run jointly by Ford and the Energy Saving Trust, the challenges are designed to inform consumers about driving more efficiently and the benefits of buying more fuel and CO2 efficient vehicles.

Although Ford charges a £250 premium for its most environmentally friendly cars – those that fall under the Econetic brand – it says the business case in terms of VED savings and fuel savings outweighs the additional cost.

It also expects residual values to rise for these vehicles.

Ford has made a concerted effort to ensure its dealer network is selling the benefits of greener cars by making it an key part of any model training.

Its recent network mystery shop revealed that 92% of vehicles in dealer showrooms were correctly labelled with the CO2 ratings.