Fleet industry news round up May

29th May 2025

HMRC to provide update on law to end employee car ownership schemes (ECOS)

Six months after the Treasury announced it would end 'contrived' Employee Car Ownership Schemes (ECOS) — aiming to close loopholes that allow these schemes to circumvent company car tax — the industry is still awaiting details on the new rules. However, the impact this could have on the industry could be significant as ending employee car ownership schemes will negatively impact staff recruitment and retention for almost half (45%) of dealers, as more than a third of dealers think that car schemes are an important benefit for staff.

ECOS differ from traditional salary sacrifice schemes in that the car is owned by the employee, not the employer.

According to the Autumn Budget, any new rules are set to take effect from April 2026.

The Treasury estimates that this change will generate an additional £275 million in tax revenue in its first year(2026/27), £220m in 2027/28, £195m in 2028/29 and £175m in 2029/30.

LCV market remains weakened due to economic uncertainy

The latest data from the Society of Motor Manufacturers and Traders show (Opens in new window) (SMMT) that UK new light commercial vehicle (LCV) registrations fell by 14.9% in April, making it the market’s weakest since 2020.

The decline marks the fifth consecutive month of falling demand, the SMMT citing weak business confidence as one of the factors holding back investment in the latest models.

While April is traditionally a lower volume month and was impacted this year by the timing of a late Easter, the figures also reflect deeper concerns around ongoing business confidence, as only just over 20,000 4x4s and pick-ups were registered last month.

The steepest decline was recorded among the large LCVs with registrations down 22.9%, however this segment still accounted for nearly 60% of all new LCVs.
Medium and small van registrations also dropped, by 5.8% and 5.5% respectively.
By contrast, 4x4 registrations rose by 19.2%, and pick-ups – buoyed by pre-tax change ordering activity – climbed 10.2% to 2,740 units.

However, there are growing concerns that the recent reclassification of double-cab pickups as cars for benefit-in-kind (Opens in new window) and capital allowances will add significant costs for sectors like farming, construction and utilities, potentially delaying future fleet replacements.

Despite the overall market slowdown, battery electric vans (BEVs) continue to see momentum, as registrations of electric LCVs up to 4.25 tonnes grew by 77.5% in April to 1,686 units, now representing 8.3% of the market – up from 4.0% a year ago.

Wear resistant brakes and tyres required to cut fleet emissions

Non-exhaust emissions – particles released from brake, tyre and road surface wear – are now the main source of particulate pollution from road transport, according to a new study commissioned by EIT Urban Mobility, Transport for London (TfL) and the Greater London Authority (GLA). (Opens in new window)

Particulate matter (PM) pollution remains one of the most severe environmental health threats in Europe, with 98% of the population exposed.

The forthcoming Euro 7 standards will introduce limits on brake and tyre wear emissions – beginning in 2026 and 2028 respectively , however these will only apply to new vehicles.
National Parking Platform to deliver 'one app fits all' solution

The app is already available in 10 local authorities, enabling drivers to pay for parking in all participating car parks using their preferred apps.

This will be delivered by a pool of parking industry leaders—such as RingGo, JustPark, and PayByPhone—but will be led by the British Parking Association (BPA).

Currently, drivers face inconsistent parking rules, clunky user experiences, and unnecessary barriers to parking. The National Parking Platform aims to resolve this by connecting participating car parks to a shared system, allowing drivers to pay through any approved app.
Used car market is still resilient with star performance from hybrids

The UK used car market had demonstrated notable resilience in the year to date, with strong performance from hybrid vehciles.

The overall retail values for popular 3–4-year-old cars (under 75,000 miles) have dropped by 1.5% year to date. However, the market remains strong due to a shortage of vehicles in this age range, even as stock levels have been rising since March.

Hybrid vehicles have emerged as the star performers in both the retail and trade markets. Valuations for hybrids (including pure and plug-in hybrids) have increased by nearly 4% YTD, largely driven by strong performance in January and February, and volumes have remained steady.

HMRC to provide update on law to end employee car ownership schemes (ECOS)

LCV market remains weakened due to economic uncertainy

Wear resistant brakes and tyres required to cut fleet emissions

National Parking Platform to deliver 'one app fits all' solution

Used car market is still resilient with star performance from hybrids