Chery Automobile’s UK electric vehicle brands Omoda and Jaecoo have introduced a new in-house tax rebate for customers following sweeping changes to the UK’s EV tax and incentive framework announced in last week’s government budget.
On Nov. 26, Chancellor Rachel Reeves unveiled revisions to the UK’s electric vehicle support programme, lifting the total funding for the Electric Car Grant to nearly £2 billion and expanding subsidies for new EV purchases. The budget also included additional support for companies operating charging infrastructure and managing electric fleets.
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At the same time, the government introduced a new future levy for EV drivers known as Electric Vehicle Excise Duty (eVED), a pay-per-mile tax expected to add around 3 pence per mile to running costs from 2028. Analysts estimate this could increase the average annual cost of EV ownership by about £276, effectively creating an equivalent to fuel duty for petrol and diesel vehicles.
In response, Omoda and Jaecoo said they will offer a rebate equivalent to 20,000 miles of driving at 3 pence per mile, covering roughly two to three years of use based on typical UK driving patterns. The rebate will apply to EVs purchased under 48-month finance agreements through the brands’ UK dealership networks.
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“Our EV tax rebate for the Omoda E5 and Jaecoo E5 effectively covers the first few years of this new tax, giving drivers the equivalent of thousands of miles of zero-cost motoring,” said Gary Lan, UK chief executive of Omoda and Jaecoo. He added the aim was “to make the transition to electric driving as smooth as possible for our customers immediately.”
The move reflects growing efforts by automakers to cushion consumers from policy-driven cost increases as governments seek new revenue streams from electric vehicles while continuing to promote their adoption.