UK fleets could face higher costs for European-built electric cars and vans from next year, with automotive manufacturers warning that new trading rules could leave many vehicles facing a 10% tariff.
The European Automobile Manufacturers’ Association (ACEA) estimates that 520,000 electric cars and vans will be exported from the EU to the UK during 2027. Apparently some 82% could fail to meet new rules of origin coming into force in January.
Under the new tariffs, those vehicles would potentially be subject to a 10% customs duty, which ACEA estimates could cost €1.47 billion in 2027 alone.
The trade association has written to EU leaders calling for a temporary change to the rules while European battery manufacturing capacity continues to develop.
Why Could EVs Face A 10% Tariff?
Under the EU-UK Trade and Cooperation Agreement, electric vehicles need to meet specific rules around where the vehicle and its battery components originate in order to qualify for tariff-free trade.
The existing arrangements were previously extended until the end of 2026, but stricter requirements are due to take effect from 1 January 2027.
ACEA says European manufacturers will not yet be able to meet those requirements at the necessary scale.
In its letter to EU leaders, the association proposes continuing with more flexible rules around battery pack assembly until the end of 2029, before introducing stricter requirements for battery cells from 2030 (and cathode materials from 2032).
ACEA says manufacturers remain committed to increasing European battery production, but argues that the necessary capacity will take longer to come online.
What Could The New EV Tariff Mean For Fleets?
For fleet operators already planning the transition towards electric vehicles, this could mean another increase in acquisition costs.
A 10% tariff does not necessarily mean the purchase price of every affected vehicle would simply rise by 10%. Manufacturers could absorb some of the cost themselves, alter discounts or change which models they supply to the UK.
Still, for fleets, it could indeed make some European-built EVs more expensive and potentially influence vehicle choice and replacement strategies.
And that matters beyond procurement. If increased vehicle costs encourage some organisations to extend replacement cycles, fleets need to make sure maintenance and roadworthiness processes keep pace.
There’s nothing inherently unsafe about retaining vehicles for longer, but additional mileage and age can of course increase the importance of:
- Preventative maintenance
- Regular vehicle inspections
- Effective defect reporting
In other words, tyres, brakes, lights and other safety-critical components still need to be monitored – regardless of whether a vehicle is electric, petrol or diesel.
Keeping Older Fleet Vehicles Safe
Fleet managers therefore need visibility not only over what vehicles they intend to buy next, but over the condition of the vehicles they already operate.
(Did you know Driving Monitor’s Fleet Monitor helps businesses manage company and grey fleet vehicles? It provides greater visibility over areas including vehicle checks, maintenance schedules and defect reporting.)
The proposed tariff changes could still be revised before January 2027.
But with fleet procurement costs potentially facing another source of pressure, businesses considering longer replacement cycles should make sure vehicle safety and roadworthiness remain firmly part of that decision.
