SG Fleet Industry Update September
Overview
Labour’s 2030 ICE ban
The new Labour government has pledged to reinstate the 2030 ban on new petrol and diesel passenger cars.
EU tariffs on Chinese EVs
The EU is proposing to apply tariffs on Chinese EVs, ranging from 17.4% to 37.6%, pending an investigation into alleged unfair subsidisation by China.
Battery testing during EV MOTs
Battery assessment is becoming more crucial in hybrid and EV models.
VED for EVs starting in 2025
From April 1, 2025, EV owners in the UK will pay road tax under new Vehicle Excise Duty (VED) rules.
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Labour’s 2030 ICE ban
The new Labour government has pledged to reinstate the 2030 ban on new petrol and diesel passenger cars.
This intends to support the transition to EVs by enhancing chargepoint infrastructure and standardising battery condition information for used EVs.
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What it means for you
Preparing for a quicker transition to EV fleets is essential, as well as ensuring access to necessary infrastructure and educating employees on EV benefits and usage.
Industry implications
What’s fuelling our vehicles?
This shift will accelerate the move to EVs, necessitating faster plans from manufacturers to phase out traditional vehicles.
It will also increase demand for charging infrastructure and standardised battery assessments.
SG Fleet is already one of the most advanced fleet management providers in the EV ecosystem.
We can fund and manage all leading makes and models of electric cars and vans.
Talk to us
About our multi-award-winning EV transition solution, eStart which can provide you with all the tools and support needed to accelerate your fleet’s journey to becoming electric.
Achieving the 2030 goal will require broader government support beyond just setting a target date.
EU tariffs on Chinese EVs
Industry implications
Proposed tariffs on Chinese EVs
The EU is proposing to apply tariffs on Chinese EVs.
17.4% From 37.6% to
Pending an investigation into alleged unfair subsidisation by China.
Additionally, the EU will adopt Euro 7 emission standards from 1st July 2025, impacting both petrol/ diesel cars and EVs.
SG Fleet support
We will keep a watching brief on these developments and provide updates and advice on how to navigate potential changes in vehicle leasing and usership costs.
These tariffs may reduce the competitiveness of Chinese EVs in the EU, leading to higher prices and encouraging investment in local production.
This aims to level the playing field for European manufacturers, who fear losing market share to lower cost Chinese imports but may impact manufacturers with production ties in China.
This may put pressure on the UK government to introduce similar measures to protect its own automotive industry.
This aims to protect the EU motor industry but could influence global trade dynamics and set a precedent for other markets.
What it means for you
It’s too early to determine the exact impacts on the UK market however you might face higher leasing costs for Chinese-made EVs. Additionally, UK manufacturers with Chinese supply chains could face disruptions and higher export costs, leaving them to face the tough decision of raising prices or absorbing the costs themselves.
Battery testing during EV MOTs
Battery assessment is becoming more crucial in hybrid and EV models.
The Department of Transport (DoT) suggests creating advanced tools to evaluate electric car batteries better, highlighting safety concerns with high-voltage systems in EVs.
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There are also calls for Advanced Driver Assistance systems (ADAS) to be checked.
You’re in safe hands with SG Fleet. We manage a nationwide network of over 5,000 service centres across the UK, offering our drivers choice and convenience - always underpinned by excellent service. Whenever your vehicle needs a service, maintenance or tyres, you can book with ease either online or by telephone and we’ll take care of everything.
Industry implications
The inclusion of battery assessments and ADAS checks in MOTs will require investment in updated training and equipment for garages.
Upskilling technicians to handle these advanced systems will be essential to ensure compliance and safety. Manufacturers must provide detailed battery information, which may drive innovation in battery technology and maintenance.
What it means for you
EV users might see improved vehicle safety and reliability through better battery assessments.
However, it may take some time for garages to become compliant leading to backlogs in MOT completion on EVs. When this comes in, planning ahead for EV MOT’s will become even more crucial.
Vehicle Excise Duty (VED) for EVs starting in 2025
From April 1, 2025
EV owners in the UK will pay road tax under new Vehicle Excise Duty (VED) rules.
Including an additional tax of £575 per year applied to EVs with a list price over £40,000 (expensive car supplement).
The current suggested costs will be reviewed by the government in October’s budget and typically increase annually by at least the Retail Price Index (RPI).
Your Customer Success Manager will be in touch after the UK government’s October budget announcement to review your current fleet and assess any potential financial impact.
£Industry implications
This policy change will impact the total cost of ownership for EVs, potentially affecting purchasing decisions and adoption rates.
The standard tax rate for EVs registered on or after 1st April 2017 is £190 for 2024, subject to change in 2025.
The expensive car supplement will apply to EVs registered on or after April 1, 2025. Battery Electric LCVs will be aligned with the RFL rate for petrol/diesel vehicles.
What it means for you
Budgeting for increased operational costs is crucial due to the new VED rules. Optimising fleet composition can help minimise tax impacts and maximise environmental benefits. You may see some of these costs for existing leases being passed on as well, so assessing your live fleet as well as future plans is crucial.
SG Fleet support
We’re here to help and advise with any guidance you might need, so please contact us:
Corporate team
Call: 0344 85 45 123
Email: uk.enquiries@sgfleet.com
Consumer team
Call: 0344 85 45 161
Email: consumer@sgfleet.com