Upcoming automotive policy changes : Key dates and impacts (2025-35)
Our Consultancy Services Team have set out a comprehensive timeline highlighting key policy updates and milestones to help you stay informed, plan and navigate the road ahead. Â
The automotive industry is facing a wave of regulatory changes over the coming years, driven by efforts to decarbonise transport, reduce emissions and promote alternative fuels as well as improving safety for all road users.
The changes, spanning from taxation updates to stricter emissions standards will have impacts on manufacturers, fleet operators and motorists alike. Our Consultancy Services Team have set out a comprehensive timeline highlighting the key policy updates and milestones across the UK and EU, along with their implications.
We hope you find it useful to help stay informed, plan and navigate the road ahead. If you would like any further information or support please get in touch and find out more about our Consultancy Services here.
Date | UK/EU | Summary |
---|---|---|
01 January 2025 | UK | Second year of ZEV mandate starts, OEMs face 28% zero-emission vehicle (battery or fuel cell electric) targets for new cars, 16% for LCVs with per-vehicle penalties for non-compliance. |
01 January 2025 | EU | <eu></eu>2 regulations come into force, setting a 93.6g/km target for new cars with a 25% ZLEV (0-50g/km CO2) share of registrations, based on tougher WLTP test. LCV targets are 153.9g/km CO2 with 17% ZLEV share. |
01 January 2025 | EU + UK | Euro 6e-bis pollutant limits introduced for new vehicle types, reducing advantages for PHEVs' electric range and likely to drive up CO2 emissions. Those changes will be reflected in UK model ranges and apply to all registrations 12 months later. |
01 April 2025 | UK | Vehicle Excise Duty changes will affect all cars since April 2017, equalising annual renewals at £195, plus £425 Expensive Car Supplement for new registrations priced at £40,000 or more. First-year rates for EVs are set at £10, vehicles emitting 1-75g/km CO2 will increase by £100, while all others will double. Electric van VED will also be equalised with ICEVs, at £345. |
01 April 2025 | UK | Double-cab pickup trucks will be treated as cars (instead of LCVs) for the purposes of corporation tax. This will effectively reduce capital allowances for purchased vehicles from 100% (under the Annual Investment Allowance) to 6% for almost all of these vehicles. |
06 April 2025 | UK | Company car tax rates will increase by 1% point for all vehicles under 75g/km CO2. Double-cab pickup trucks registered after this date will also be taxed as cars, not LCVs, with a taxable value based on their CO2 emissions instead of the van benefit charge. |
06 April 1025 | UK | Benefit charges will increase in line with Consumer Price Index (CPI) inflation. New rates are £4,020 for vans, £789 for van fuel, £28,200 for car fuel. |
25 December 2025 | UK | The** London Congestion Charge** Cleaner Vehicle Discount will be discontinued. For the first time, electric vehicles will be charged to enter the zone. |
01 January 2026 | EU + UK | Euro NCAP safety scores will be updated, focused on better detection of drowsiness, alcohol and drug use and whether controls such as touchscreens are designed to avoid distraction. |
22 March 2026 | UK | Fuel duty will cease to be frozen, and the 5p per litre cut will be removed. |
31 March 2026 | UK | 100% first-year allowances will end for zero-emission cars and EV charge points, while the Plug-in Car Grant is also set to be withdrawn. |
06 April 2026 | UK | Benefit reporting through payroll will become mandatory, replacing annual P11d reporting forms for company car and salary sacrifice fleets. |
07 July 2026 | EU + UK | General Safety Regulation 2 in force for all new vehicle types, requiring Advanced Driver Distraction Warning systems - which track drivers' eye gaze and/or head movements. |
01 November 2026 | EU + UK | Euro 7 emissions limits comes into force for type approvals, including particulates from EV brakes and durability requirements for high-voltage batteries. The rules affect all new cars and vans 12 months later. |
01 January 2027 | EU + UK | Import tariffs of 10% will be applied to EVs entering the EU or UK that don't meet new rules of origin requirements. By this date, 55% of the vehicle value, 70% of the battery pack and 65% of the battery cells must come from within the EU or UK. |
06 April 2028 | UK | Company car tax rates for PHEVs under 50g/km will be equalised at 18%, removing incentives for longer electric ranges. BEV rates will increase by 2% points, to 7%. The maximum rate (for vehicles emitting 155g/km or more) will increase to 38%, rising 1% point each year. |
01 January 2030 | UK | New petrol and diesel car sales will end, except for hybrids, while the ZEV mandate requires 80% of new cars and 70% of new vans to be zero-emission by this point. The government is targeting 300,000 public chargers to meet demand. |
01 January 2030 | EU | EU CO2 targets will fall to 49.5g/km for cars and 90.6g/km for LCVs. |
01 January 2035 | EU + UK | Sales of new fuel-burning cars and vans will end in the EU and UK. Only zero-emission vehicles will be available from this point. |