Stricter European standards are expected to reshape demand for plug-in hybrid vehicles (PHEV), forcing fleet buyers and company car users to reassess their cost-effectiveness.
Under the new Euro 6e-bis emissions rules, PHEVs will undergo stricter emissions testing in 2025 to provide more accurate real-world data, potentially reducing their appeal as company cars due to increased taxation.
Currently, PHEVs emitting less than 50g/km of CO2 are categorised into bands based on their electric-only range, attracting a benefit-in-kind (BiK) tax rate of 5%, 8%, or 12%. However, under the revised testing standards, PHEVs that exceed the 50g/km threshold will face a minimum BiK rate of 15%.
Login to continue reading
Or register with AM-online to keep up to date with the latest UK automotive retail industry news and insight.
