Mitsubishi Motors UK welcomed the government’s plans to restructure the Benefit in Kind taxation system.
The change will encourage the uptake of greener vehicles amongst business users.
In the next financial year, beginning in April 2020, the UK’s best-selling plug-in hybrid, the Mitsubishi Outlander PHEV, will now attract a BIK rate of 12% for eligible business users, down from the 16% rate it currently attracts.
While the BIK changes will undoubtedly incentivise company car drivers to drive greener vehicles, more needs to be done to encourage the uptake of clean vehicles amongst retail customers, especially as they tend to be understandably more cautious in their purchase decisions.
Mitsubishi UK is calling on HMRC to present a concrete long-term plan of how it intends to encourage the adoption of cleaner vehicles – its stated Road to Zero goals are clear, but a clear roadmap of how we get there is urgently needed.
That plan should include, for example, a review of VED banding because it currently offers an ongoing incentive of just £10 per year for those adopting a greener vehicle. The plan could also look at incentivising regular charging, to ensure that PHEVs are used to their full potential as well as a clear plan for manufacturers to work to pertaining to charger types and cables, charging capabilities and the placement of recharge slots on the vehicles, for example.
Rob Lindley, Managing Director of Mitsubishi Motors in the UK, said, “It is encouraging that proper consideration has been given to Plug-in Hybrid Vehicles as part of the upcoming BIK updates for company car drivers.
“We’re hopeful that the government is beginning to understand that PHEVs represent the perfect segue to a zero emission future, with our customers telling us that on average they drive half their daily mileage in pure electric mode and a quarter of those customers indicating that they’re seriously considering a pure electric vehicle for their potential next purchase.
“Like the rest of the motor industry, we are very much behind the government’s zero emission goals but like any long journey it’s something that needs to be undertaken in carefully measured and paced steps.”
With over 45,000 registered in the UK since 2014, the Mitsubishi Outlander PHEV is the UK’s most popular plug-in vehicle. Revised in 2019, it now has a real-world EV range of 28 miles and achieves 139mpg (WLTP).