Vauxhall has revised its 1.3CDTi diesel engine for its Corsa range.

The engine overhaul has cut carbon dioxide emissions from 124g/km to 119g/km. It’s not a huge drop but it does mean that customers of this particular variant will fall in to group B for VED tax, resulting in a drop in price from £155 to £35 for an annual tax disc.

Company car drivers will see further savings, as from the 2008/09 tax year the Corsa will fall into the new 13% company car tax band introduced by the Chancellor for diesel cars emitting less than 120g/km – a drop which could save a 40% tax payer £237 a year.

In addition, the revised engine would also be entitled to a 100% discount from the London Congestion Charge if the mayor’s proposals for 2008 are approved.

Bill Parfitt, Vauxhall UK’s managing director, said: “Vauxhall’s parent company General Motors is investing heavily in alternative fuel strategies for the medium and long term. Today, we are making reductions in CO2 emissions wherever possible on our most popular model lines. This has a dramatic effect when considering the scale of our sales operations and also has an important benefit of saving our customers money.”

The new Corsa CDTi models are on sale now, priced from £9,810 for the Corsa Life 1.3CDTi three-door.