Euro 6e-Bis - How will it effect PHEV vehicles

Understanding Euro 6e-Bis: The Next Step in Emission Standards

As the automotive industry continues its journey towards cleaner and greener technologies, the European Union is preparing to implement a new phase of emissions regulations known as Euro 6e-bis. This update builds on the existing Euro 6 standards, focusing on stricter testing and greater alignment with real-world driving conditions. But what does this mean for vehicle manufacturers, fleet managers, and consumers? Let’s break it down.

What Is Euro 6e-Bis?

The Euro 6e-bis standard is an enhancement of the EU’s vehicle emissions regulations, aiming to further reduce pollutants from light-duty vehicles. It introduces advanced testing procedures to ensure vehicles meet emissions requirements in real-world conditions, not just in controlled laboratory settings.

Why Is This Important?

Euro 6e-bis is designed to close the gap between laboratory-tested and real-world emissions, a critical step towards reducing air pollution and mitigating the environmental impact of vehicles. For fleet operators and vehicle manufacturers, this means:

  • Stronger Compliance Requirements: Adherence to stricter testing standards will demand more advanced emissions control technologies.

  • Enhanced Environmental Responsibility: Vehicles will produce fewer harmful pollutants, contributing to cleaner air quality.

  • Informed Decision-Making for Fleets: Fleet managers will need to evaluate vehicles not only on cost and performance but also on compliance with these new regulations.

New Testing for PHEV's

Plug-in Hybrid Electric Vehicles (PHEVs) will undergo more rigorous emissions testing in 2025 as part of the revised Euro 6e-bis standard. This change aims to provide more accurate real-world emissions data but is set to make PHEVs less attractive for company car drivers due to increased Benefit-in-Kind (BiK) tax rates.

Key Changes for PHEVs

Under current company car tax rules, vehicles that emit less than 50g/km of CO2 are divided into bands based on their Electric only driving range.

Here are the current tax rates for EV and PHEV

Co2 Emissions

G/Km

Electric range 

miles

2024- 2025

% rate

2025- 2026

% rate

2026- 2027

% rate

2027- 2028

% rate

2028- 2029

% rate

2029- 2030

% rate

0 N/a 2 3 4 5 7 9
1-50 >130 2 3 4 5

18

19
1-50 70-129 5 6 7 8 18 19
1-50 40-69 8 9 10 11 18 19
1-50 30-39 12 13 14 15 18 19
1-50 <30 14 15 16 17 18 19
               

Euro 6e-bis Explained

The Euro 6e-bis standard, effective for all newly launched PHEVs from January 1, 2025, and all existing models from December 31 2024, introduces stricter emissions measurement protocols. The changes require all PHEV models to be re-homologated before the end of 2025.

  • CO2 Testing Methodology: PHEV CO2 emissions are measured in two modes—first when driving with a fully charged battery and then with a depleted battery. These results are weighted using a Utility Factor (UF), which accounts for the range a PHEV can cover in battery-depleting operation.
  • Updated Utility Factor: Under Euro 6e-bis, the UF has increased from 497 miles to 1,367 miles. This adjustment reflects real-world usage more accurately but significantly raises official CO2 values.

How it could impact PHEV vehicles.

The revised testing standards could lead to dramatic increases in CO2 emissions figures and BiK rates for popular PHEV models. This could double the current CO2 rates which could mean vehicle having a CO2 emissions of 90+g/Km and as a company car driver having to pay double BIK tax. 

What Does This Mean for Drivers?

While current PHEV users are unaffected, those ordering new vehicles in 2025 could face unexpected BIK increases if their cars are re-homologated between order and delivery the CO2 emissions and therefore the BIK may change.

This underscores the importance of understanding how these regulatory changes might influence total cost of ownership.

To summarise the Key Changes Under Euro 6e-Bis

  1. Implementation Timeline

    • 1 January 2025: Euro 6e-bis becomes mandatory for new vehicle types.

    • 1 January 2026: The standard applies to all newly manufactured vehicles.

  2. Expanded Real Driving Emissions (RDE) Testing
    Testing conditions will now cover a broader range of temperatures and driving scenarios, ensuring compliance under varied real-world conditions.

  3. Revised Utility Factors for Plug-in Hybrids (PHEVs)
    PHEVs will have updated utility factors, reflecting a more realistic mix of electric-only and hybrid driving. This change aims to provide a truer representation of their CO₂ emissions.

  4. More Accurate CO₂ Testing for PHEVs
    New test methods will address concerns that current procedures underestimate the actual emissions of plug-in hybrids. This is part of the EU’s effort to improve the accountability of hybrid technologies.

Looking Ahead

While Euro 6e-bis is an incremental update, it sets the stage for the Euro 7 standard, expected to bring even tighter emissions limits and address additional pollutants. Euro 7 is anticipated to come into effect around 2030, further advancing the EU’s ambitious climate goals.

How MPH Vehicle Leasing Can Help

At MPH, we’ve been helping businesses navigate vehicle tax and emissions changes for over 20 years. With our expertise in fleet management and vehicle leasing, we can help you assess your options, ensuring that your fleet remains cost-effective and compliant with the latest regulations.

Get in touch today to discuss how we can assist with your fleet needs in light of these new developments.