How the Euro 6e-bis Testing Changes in 2025 Will Impact PHEVs and Fleet Operators
In 2025, the European Union will implement the Euro 6e-bis emissions standard, introducing stricter testing procedures for plug-in hybrid electric vehicles (PHEVs) to better reflect real-world driving conditions.
The UK has historically followed EU regulations on vehicle emissions, and Euro standards still apply to vehicles sold and registered in the UK even after Brexit.
This change aims to provide more accurate CO₂ emissions data, which could significantly impact taxation, especially for company car drivers.
Firstly What Exactly is Euro 6e-bis:
Euro 6e-bis is an enhancement of the Euro 6 emissions standard, specifically targeting plug-in hybrid electric vehicles (PHEVs).
What Are Euro 6 Emissions, the evolution of Euro Emission standards
1️⃣ Euro 1 (1992) - First mandatory emissions standard for passenger cars. Required catalytic converters and unleaded petrol. Limits: CO: 2.72 g/km, HC + NOx: 0.97 g/km and PM (diesel): 0.14 g/km
2️⃣ Euro 2 (1996) - Further reduced NOx and CO emissions. Introduced separate limits for petrol and diesel engines. Limits (petrol/diesel): CO: 2.2 / 1.0 g/km, HC + NOx: 0.5 / 0.7 g/km and PM (diesel): 0.08 g/km
3️⃣ Euro 3 (2000) - Eliminated HC + NOx combined limit and set separate limits for NOx. Limits: CO: 2.3 / 0.64 g/km, HC: 0.2 g/km, NOx: 0.15 g/km and PM (diesel): 0.05 g/km
4️⃣ Euro 4 (2005) - Significant reduction in diesel NOx and PM emissions. Popularized diesel particulate filters (DPF). Limits: CO: 1.0 / 0.5 g/km, HC: 0.1 g/km, NOx: 0.08 g/km and PM (diesel): 0.025 g/km
5️⃣ Euro 5 (2009) - Further NOx and PM reductions for diesel vehicles. Mandated DPFs for diesel vehicles. Limits: NOx (diesel): 0.18 g/km and PM (diesel): 0.005 g/km
6️⃣ Euro 6 (2014) - Major NOx cuts for diesel vehicles. Encouraged Selective Catalytic Reduction (SCR) and AdBlue technology. Introduced Real Driving Emissions (RDE) testing. Limits: NOx (diesel): 0.08 g/km and PM: 0.0045 g/km
7️⃣ Euro 6d-Temp (2019) & Euro 6d (2021) - Strengthened RDE tests. Lowered NOx compliance thresholds. Measured emissions using Portable Emission Measurement Systems (PEMS).
8️⃣ Euro 6e-bis (01/01/2025) and Euro 7 (Coming 2025) - Will introduce stricter NOx, PM, and brake dust limits. Focus on electric and hybrid vehicle regulations. Stricter on-board diagnostics (OBD) monitoring.
Key Changes Under Euro 6e-bis:
- Extended Testing Distance: The simulated distance for emissions testing will increase from 800 km (497 miles) to 2,200 km (1,367 miles), offering a more comprehensive assessment of a PHEV's performance over longer drives.
Revised Utility Factor (UF): The UF, which determines the proportion of driving in electric-only mode, will be adjusted to reflect more realistic usage patterns.
This adjustment is expected to result in HIGHER official CO₂ emission values for many PHEVs.
Implications For Fleet Operators and Company Car Drivers:
For company car drivers, these changes could lead to higher Benefit-in-Kind (BiK) tax rates. For instance, a model previously emitting 49g/km of CO₂ might see its emissions rating increase to 94g/km under the new testing procedures, for 2025/26 this could see a BIK %age rise from say the 6% band to the 24% band.
For a car costing £35,000 that's a BIK increase from £2,100 to £8,400, which would see a 40% taxpayer paying 4 times as much income tax at £280 per month.
Higher BIK rates means not only increased driver taxation but also Company Employers National Insurance Tax (NIC) increases, in the above example Employers NIC would increase from £315 to £1,260 a year, a 300% increase. This is AFTER taking into consideration the main rate of employers’ National Insurance contributions in the UK will increase from 13.8% to 15% from April 2025.
As a result of these changes its likely the 24% car wouldn't be on the company car policy choice list so the outcome is expected to be reduced PHEV choice for drivers.
When will this Apply?:
It's important to note that these standards will apply to all new PHEV models launched from January 1, 2025.
For existing models from December 31, 2025.
Current PHEV company car drivers will not be affected unless they purchase/lease a new vehicle after these dates so there is an incentive to take a PHEV vehicle before 31/12/2025.
Looking Ahead:
The Euro 6e-bis-FCM standard is set to take effect in 2027, further increasing the testing distance to 4,260 km (2,647 miles), which may lead to additional adjustments in CO₂ emission values and associated taxes, again likely to be on go forward vehicles only so cars delivered in 2025 wouldn't be impacted again in 2027.
These developments underscore the importance for Fleet Operators, PHEV owners and prospective buyers to stay informed about regulatory changes, as they can have significant financial implications.
LetsTalkFleet can provide independent impartial advice on all aspects of Fleet Policy Development for your business so please get in touch with any specific enquiries you have, we are available on 0330 056 3335 or via email contact@letstalkfleet.co.uk .