The impact of new Euro 6e-bis Regulations for Plug-In Hybrid Electric Vehicles

Plug-in Hybrid Electric Vehicles (PHEVs) are playing their part in powering a greener, cleaner future, as we transition away from petrol or diesel Internal Combustion Engine (ICE) cars. Their UK market share is still growing as many drivers find them to be a stepping stone to driving an all-electric car with 167,178 PHEVs registered in the UK according to the Society of Manufacturers and Traders (SMMT) during 2024.

But with new regulations, known as the Euro 6e-bis emissions regulation standards coming into play on 1 January 2025 across Europe, including the UK, you might be wondering: are Plug-In Hybrids still a good bet for drivers?

What are the new regulations?

The Euro 6e-bis emissions standards were introduced recently, 1^st January, and are designed to provide stricter testing methods for new PHEVs. Before these changes, emissions testing was based on a simulated distance of 800km (497 miles), but Euro 6e-bis has more than doubled this testing to 2,200km (1,367 miles) to better reflect real-world driving.

The first results to be released have shown a general increase in the amount of CO2 emitted by PHEVs across these longer distances.

And it’s not just new car models that will be affected. By the end of 2025, every PHEV on sale in the UK will need to meet these updated standards too, potentially marking a big shift for this fuel type with drivers.

What does this mean for PHEV drivers?

While it’s clear that this is part of Europe’s broader efforts to tackle air pollution, it could affect the choice of car for some considering these cars.

The new emission tests could mean that CO2 levels will rise for PHEVs, moving them into a higher Benefit-in-Kind (BIK) bracket. This could mean lower levels of savings available than previously seen for these cars when taken on a salary sacrifice or company car scheme.

PHEVs are a popular choice for around 15% of salary sacrifice drivers who want to start their move away from driving petrol or diesel cars. Around 80% already choose a pure electric car.

With the highest levels of savings available on electric vehicles (EVs) when it comes to the salary sacrifice scheme, it could help the UK speed up the transition to fully-electric cars, with drivers opting for the highest levels of savings.

As manufacturers prepare to launch new PHEVs in 2025 with the Euro 6e-data, we’ll know more about how this will impact running costs, including Benefit in Kind and our systems will be updated to reflect the new details.