Euro 6e-bis Explained — What It Means for BMW, Volkswagen and Fleet Budgets in 2026
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The Euro 6e-bis standard has raised CO₂ figures for many plug-in hybrids. We break down what it means for your BMW or VW lease and next year’s fleet strategy.
BMW vs Volkswagen: How Euro 6e-bis Has Changed Plug-in Hybrids and What’s Coming in 2026
The start of a new testing era
From January 2025, all new plug-in hybrids (PHEVs) began to be certified under the tougher Euro 6e-bis emissions standard.
The change was designed to close the gap between official figures and real-world driving. Regulators found that many drivers weren’t charging their PHEVs regularly, which meant the petrol engine was doing far more work than the tests assumed.
Under Euro 6e-bis, the new “utility factor” gives more weight to engine running, resulting in significantly higher official CO₂ figures for most models, especially those with shorter electric ranges.
What changed for key BMW and Volkswagen models
The re-testing under Euro 6e-bis caused some of the UK’s most popular fleet models to move up sharply in their CO₂ ratings.
| Model | Pre-Euro 6e CO₂ (g/km) | After Euro 6e-bis (average) | % Change | Impact |
|---|---|---|---|---|
| Volkswagen Tiguan eHybrid | 38 – 43 | 75 – 95 | +70 – 120% | Moved into higher Benefit-in-Kind (BiK) and lease bands. |
| Volkswagen Golf eHybrid / GTE | 40 – 45 | 65 – 80 | +50 – 80% | Lost much of its “low-emission” tax advantage. |
| BMW 3 Series 330e | 37 – 45 | 60 – 75 | +40 – 70% | Now sits outside sub-50 g/km BiK bands. |
| BMW 5 Series 530e | 47 – 52 | 70 – 90 | +40 – 60% | Still reasonable for exec drivers but less tax-efficient overall. |
Why it mattered for business leasing
Higher CO₂ ratings under Euro 6e-bis didn’t just hit company car tax - they also affected how much of a lease payment businesses could offset against taxable profits.
Example:
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Vehicle lease: £700 + VAT / month (36 months)
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Pre-2025 CO₂ rating: 45 g/km → 100% of lease cost deductible
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After Euro 6e-bis: 75 g/km → only 85% deductible
| Old (< 50 g/km) | New (> 50 g/km) | |
|---|---|---|
| Monthly lease (ex. VAT) | £700 | £700 |
| Annual lease cost | £8,400 | £8,400 |
| Allowable deduction | £8,400 | £7,140 |
| Lost tax-deductible amount | – | £1,260 |
| Extra corporation tax (25%) | – | £315 per year |
That’s almost £1,000 in additional tax over a three-year term, per car, simply because the official CO₂ increased.
What happens next in 2026
The industry is now adjusting to Euro 6e-bis, but the next stage is already on the horizon.
1. Euro 6e-bis-II (2026 onward)
The EU and UK regulators are preparing to tighten the test further in late 2026. This will:
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Add cold-start and longer-journey conditions,
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Bring in more stringent battery-state-of-charge measurements,
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And refine the utility factor again to reflect typical fleet behaviour.
The aim is to make PHEV CO₂ numbers even closer to what fleets experience day to day, which could push some short-range plug-in hybrids beyond 100 g/km.
2. Fleet and tax ripple effects
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Many businesses that switched to PHEVs for low BiK or full lease deductibility will now find EVs offer stronger tax positions.
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Lease rates for PHEVs are likely to rise slightly as residual values are re-forecast under the new CO₂ data.
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From 2026, HMRC may review the 50 g/km lease-deduction threshold, which hasn’t been updated since before Euro 6e-bis.
Kinetic’s view
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Fleet reviews are essential. Businesses that haven’t yet updated their company-car or environmental policy should do so now. “Under 50 g/km” is no longer a safe blanket rule.
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Charging habits determine value. PHEVs still make sense for mixed-route drivers who plug in daily. For everyone else, a full EV may now be the smarter move.
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BMW fares slightly better. Larger battery capacities in models like the 530e cushion the rise, whereas VW’s Tiguan and Golf eHybrids have been hit harder.
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Plan around 2026 tightening. Expect further CO₂ uplifts, more scrutiny on claimed emissions, and growing advantages for pure electric vehicles.
The bottom line
Euro 6e-bis has already reshaped the plug-in hybrid market. The Volkswagen Tiguan and Golf saw the biggest jumps in CO₂, while BMW’s 3 Series and 5 Series managed the transition a little better - but still lost some tax efficiency.
With another update expected in 2026, fleets should be planning ahead now. Reviewing policy, modelling whole-life costs, and comparing PHEVs with full EVs will be critical to keeping your running costs predictable.
At Kinetic Vehicle Leasing, we’re helping businesses across Scotland understand these changes, model their fleet impact, and choose vehicles that stay tax-efficient and fit for the future.
If you’d like us to review how Euro 6e-bis and the 2026 updates could affect your next lease renewal, get in touch with our team today 0330 202 0973