Omoda&Jaecoo is offering customers a tax rebate to offset new EV charges announced in the UK Government’s 2026 Budget, according to company officials.
The Chinese manufacturer will provide buyers with £600 – the equivalent of 20,000 miles of driving at 3p per mile. This rebate launches immediately and applies to purchases of the fully-electric Omoda E5 and Jaecoo E5 SUVs.
UK Chancellor Rachel Reeves announced the new 3p-per-mile tax on EV drivers during the Budget. The tax won’t take effect until the 2028-2029 financial year but represents the Government’s response to declining fuel duty revenue as electric car adoption increases.
The rebate covers between two and three years of typical driving.
Current estimates show the average EV travels 8,740 miles annually. Omoda&Jaecoo’s rebate effectively pre-pays this new tax burden for most drivers’ initial ownership period.
Customers must purchase their EV through a 48-month finance agreement via the manufacturer’s UK dealer network to qualify. Company officials say the rebate structure ensures “value remains relevant over the full four-year term” while reducing lifetime ownership costs.
Industry Response to Budget Changes
Gary Lan, Omoda&Jaecoo UK CEO, addressed the timing of the company’s response.
“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,” Lan said.
He emphasized the rebate covers “the first few years of this new tax, giving drivers the equivalent of thousands of miles of zero-cost motoring.”
The 2026 UK Budget has drawn criticism from EV industry leaders. EVA CEO Vicky Edmonds called the timing “completely the wrong time” to tax EV drivers.
Tanya Sinclar, CEO of Electric Vehicles UK, said the announcement sends “mixed signals, which will impact market confidence.”
Omoda&Jaecoo becomes the first manufacturer to launch an in-house rebate program in response to the Budget changes. Industry analysts expect other carmakers to announce similar programs – following patterns seen with the Electric Car Grant announcement earlier this year.
The rebate program targets immediate cost reduction for EV adoption while the Government’s tax changes remain years away from implementation.
