Confused With Running Your Fleet? How Will WLTP Affect you…

Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP) is the latest standardisation to hit the automotive market. Amongst WLTP is PHEV, VED, SMR and of course NEDC adding to all the other abbreviations within the Fleet Industry, it can be very daunting and confusing to understand how this new procedure will impact you and the running of your fleet.

The new procedure WLTP replaces NEDC (New European Driving Cycle), designed in the 1980s it has since become outdated due to the evolution in today’s driving conditions and technology. But, the big questions are, what will change and how it affects your fleet?

 

What will Change?

WLTP_Change(Source: wltpfacts.eu)

 

How WLTP will affect your Fleet?

The new procedure is a more in depth testing process, creating more realistic CO2, fuel consumption and pollutant values. The testing process is 10 minutes longer than the older NEDC test, it allows for more precise data in terms of the vehicles performance and accurate information based on actual on-the-road conditions.

The move to the new WLTP test should not negatively impact vehicle taxation by increasing costs for the consumers.  After all, the vehicle’s performance is not affected by the transition to Worldwide Harmonised Light Vehicle Test Procedure. However, WLTP will more often than not result in a higher g/km CO2 value for a specific vehicle compared to NEDC, simply because it is more rigorous than the old test.

For example, as of September 2017 one car model might still have a value of 100g CO2/km using the old NEDC test, but a recently approved car might come in at around 120g CO2/km under the new WLTP test.

The cars are nearly identical, except one has the latest test results. It is quite clear which one the consumer would choose if a country’s CO2-tax scheme were to remain unchanged. This would lead to a very anti-competitive situation in the market, and result in confusion for consumers.

To that end, the Government needs to ensure that CO2-based taxation will be fair.  If they fail to do so, the introduction of the new test procedure will increase the financial burden on companies and the drivers.  Unfortunately there is still no news with any changes to the existing Benefit-In-Kind rates to absorb the likely company car tax increase.

 

Going Forward

Most manufacturers are withdrawing old engines and publishing revised fuel economy and emissions data.  Some of the information has been delayed meaning several manufacturers models are currently unquotable.

It also opens up more emphasis on alternative fuelled vehicles.  Plug-in hybrids (PHEV), hybrids and full electric vehicles come to mind due to the competitive CO2 figures, however it doesn’t automatically discredit petrol and diesel options, especially with high mileage users as diesel engines are still a very viable option due to the higher miles per gallon (MPG).