Omoda&Jaecoo launches in-house pay-per-mile rebate
Omoda&Jaecoo is offering an in-house tax rebate on its fully-electric Omoda E5 and Jaecoo E5 SUVs as a response to the UK Government’s 2026 Budget.
UK Chancellor, Rachel Reeves, announced in the Budget that EV drivers will be taxed an additional 3p per mile on top of existing taxes as the Government seeks to plug the hole in fuel duty revenue caused by the widespread uptake of electric cars across the country.
Despite the tax not coming into effect until the 2028-2029 financial year, Omoda&Jaecoo’s own tax rebate is offering buyers the equivalent of 20,000 miles of driving at 3p per mile starting immediately. At present, it is estimated that the average EV travels 8,740 miles each year, meaning the rebate will cover between two and three-years’ worth of motoring.
The saving is applicable on EVs purchased with a 48-month finance agreement via the Chinese manufacturer’s UK dealer network.
The Omoda&Jaecoo tax rebate will ensure “that the value of the rebate remains relevant over the full four-year term, effectively pre-covering a portion of the future tax burden during the life of the agreement”. It will also allow motorists to immediately benefit from lower running costs and reduced costs over the car’s lifetime ownership.
On the back of Reeves’ Budget, Omoda&Jaecoo UK CEO, Gary Lan, commented: “The Budget introduces a new 3p-per-mile EV tax from 2028 – 2029, and we want to make the transition to electric driving as smooth as possible for our customers immediately, not three or four years from now.
“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. This initiative reflects our commitment to making clean, efficient, and intelligent transportation more accessible to UK drivers from day one.”
The 2026 UK Budget has provoked controversy within the UK’s EV sector, with EVA CEO Vicky Edmonds describing it as “completely the wrong time” to be taxing EV drivers, while Tanya Sinclar, the CEO of lobby group Electric Vehicles UK accused the Chancellor’s announcement of sending “mixed signals, which will impact market confidence.”
Omoda&Jaecoo is the first carmaker to launch is own in-house rebate. As with the Electric Car Grant announcement earlier this year, other manufacturers are expected to follow.
