Euro 7 Emissions Standards 2026: What Electric Car Fleet Managers Need to Know

Source: Shutterstock

Key Insights

  • Euro 7 emissions standards take effect in mid-2026 for new car models and 2027 for all new vehicles sold, introducing the strictest pollution limits ever implemented in Europe, but electric vehicles remain automatically compliant as they produce zero tailpipe emissions.
  • Fleet managers using electric car salary sacrifice schemes can future-proof their fleets against regulatory changes while benefiting from 20-50% cost savings and the current 3% Benefit-in-Kind rate.
  • The new regulations extend beyond exhaust emissions to include brake and tyre particulate limits, battery durability requirements, and real-world emissions monitoring—areas where EVs already demonstrate significant advantages over conventional vehicles.
  • Euro 7 effectively accelerates the transition to electric fleets by making petrol and diesel vehicles more expensive to develop and manufacture, whilst EVs face minimal compliance burden and offer long-term cost certainty for businesses.

As we enter 2026, fleet managers across the UK are preparing for one of the most significant regulatory changes in automotive history: Euro 7 emissions standards. With the regulations set to take effect this year, understanding their implications is crucial for anyone managing a company electric car scheme or considering the transition to electric vehicles.

What Are Euro 7 Emissions Standards?

Euro 7 represents the seventh generation of European emissions standards, designed to significantly reduce pollutants from road vehicles. These regulations establish strict limits on harmful emissions including nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and non-methane hydrocarbons.

Unlike previous Euro standards that primarily focused on laboratory test conditions, Euro 7 introduces real-world testing requirements that more accurately reflect actual driving conditions. This means vehicles must maintain low emissions across a wider range of temperatures, speeds, and driving scenarios.

The regulations apply to all new vehicles sold in the UK and EU, covering:

  • Light passenger vehicles (cars)

  • Light commercial vehicles (vans)

  • Heavy-duty vehicles (lorries and buses)

When Do Euro 7 Standards Come Into Effect?

The implementation timeline for Euro 7 follows a phased approach:

Mid-2026: New car and van models must comply with Euro 7 standards

Mid-2027: All new cars and vans sold must meet Euro 7 requirements

Mid-2027: New lorry and bus models must comply

Mid-2029: All new lorries and buses sold must meet Euro 7 standards

For fleet managers, this means that any electric car salary sacrifice arrangements or vehicle procurement decisions made now should account for these upcoming regulations.

How Do Euro 7 Standards Affect Electric Vehicles?

Here's the excellent news for fleet managers already operating or considering electric car schemes: electric vehicles are inherently compliant with Euro 7 emissions standards.

Zero Tailpipe Emissions

Electric cars produce no exhaust emissions whatsoever, automatically meeting all Euro 7 requirements for NOx, CO, and hydrocarbon emissions. This isn't just about meeting current standards—it's about complete immunity from future tightening of exhaust emission limits.

Simplified Compliance

Whilst manufacturers of petrol and diesel vehicles must invest heavily in new emission control technologies, electric vehicle manufacturers face minimal additional compliance burden. This translates to:

  • No unexpected cost increases due to regulatory compliance

  • Stable vehicle pricing in salary sacrifice electric car schemes

  • Guaranteed long-term regulatory compliance

Beyond Exhaust Emissions

Euro 7 extends its reach beyond traditional exhaust emissions to include:

Brake Particulate Emissions: Electric vehicles use regenerative braking, which significantly reduces brake pad wear and associated particulate emissions—often by 50% or more compared to conventional vehicles.

Tyre Emissions: Whilst heavier vehicles produce more tyre particulate matter, Euro 7 sets the same limits for all vehicles. Modern EVs are designed with this in mind, and the regulations don't disproportionately affect electric cars.

Battery Durability: Euro 7 mandates that EV batteries must retain at least 80% capacity after five years or 100,000 km, and 72% after eight years or 160,000 km. Most modern electric vehicles already exceed these requirements, with manufacturers offering warranties that guarantee these levels.

What Do Euro 7 Standards Mean for Petrol and Diesel Vehicles?

The impact on conventional vehicles is substantial. Euro 7 introduces:

  • 50% reduction in NOx limits compared to Euro 6

  • Stricter particulate matter limits

  • Extended temperature range testing (-10°C to +45°C)

  • Real-world emissions monitoring requirements

For manufacturers, this necessitates significant investment in:

  • Advanced catalytic converters

  • Improved engine management systems

  • Enhanced particulate filters

  • On-board emissions monitoring

These technological requirements will likely increase the purchase price of new petrol and diesel vehicles, making the cost comparison between electric cars and petrol cars even more favourable for EVs.

Why Should Fleet Managers Choose Electric Cars Under Euro 7?

Regulatory Future-Proofing

With the UK government's commitment to banning new petrol and diesel car sales by 2030, Euro 7 represents an interim step towards zero-emission transport. Fleet managers who transition to electric vehicles through salary sacrifice now can:

  • Avoid future regulatory headaches

  • Ensure uninterrupted fleet operations

  • Demonstrate environmental leadership

Cost Certainty

Euro 7 compliance costs for conventional vehicles create pricing uncertainty. In contrast, electric car salary sacrifice schemes offer:

  • 20-50% savings compared to traditional car leasing

  • Fixed monthly costs with no unexpected compliance-related increases

  • Current 3% Benefit-in-Kind rate (compared to up to 37% for high-emission vehicles)

  • Lower running costs with no fuel price volatility

Environmental Credentials

Businesses increasingly face pressure to demonstrate green credentials and reduce carbon emissions. An electric fleet provides:

  • Measurable emissions reductions for ESG reporting

  • Clear evidence of environmental commitment

  • Enhanced corporate reputation

  • Support for net zero targets

Employee Attraction and Retention

Offering an electric car scheme as an employee benefit helps businesses:

  • Attract environmentally conscious talent

  • Provide valuable cost-saving benefits to employees

  • Enhance overall benefits packages

  • Improve employee satisfaction and retention

Are There Any Concerns for EV Fleet Managers?

Battery Durability Requirements

Euro 7's battery durability standards might seem concerning, but modern electric vehicles comfortably exceed these requirements. Most manufacturers already offer 8-year or 100,000-mile warranties guaranteeing 70% capacity retention—well above the 72% required by Euro 7 at eight years.

For fleet managers using 2-4 year salary sacrifice car schemes, vehicles will be replaced well before any battery degradation concerns arise.

Tyre and Brake Emissions

Whilst Euro 7 addresses non-exhaust emissions including tyre wear, this doesn't disadvantage EVs. The regenerative braking systems in electric cars actually reduce brake particulate emissions significantly, and tyre technology continues to improve for all vehicle types.

Charging Infrastructure

Some fleet managers worry about charging infrastructure, but the UK now has over 75,000 public charging points—a 46% increase from the previous year. Additionally, many businesses are installing workplace charging to complement home charging options for employees.

How Does The Electric Car Scheme Help Fleet Managers?

The Electric Car Scheme provides comprehensive support for businesses transitioning to electric fleets:

Complete Employer Protection

Our industry-leading Complete Employer Protection safeguards businesses from financial risks if employees leave during the lease period—protecting you from day one.

No Setup Costs

There are no costs to businesses for implementing the scheme, making it a risk-free way to offer valuable employee benefits whilst future-proofing your fleet against Euro 7 and beyond.

Comprehensive Support

We provide:

Wide Vehicle Choice

Access the best electric cars to salary sacrifice from all major manufacturers, ensuring you can find the perfect vehicles for your fleet requirements.

Frequently Asked Questions About Euro 7 and Electric Vehicles

Will Euro 7 make petrol and diesel cars more expensive?

Yes, the additional technology required for Euro 7 compliance will likely increase the cost of new petrol and diesel vehicles, making electric cars even more cost-competitive—particularly through salary sacrifice schemes where employees save 20-50%.

Do electric cars need any modifications to meet Euro 7?

No. Electric vehicles produce zero tailpipe emissions and are automatically compliant with all Euro 7 exhaust emission requirements without any modifications.

Should I wait until after Euro 7 to buy an electric car?

No. Electric cars are already compliant, and delaying means missing out on current savings. The 3% Benefit-in-Kind rate for 2025/26 makes electric car salary sacrifice extremely cost-effective right now.

How does Euro 7 affect used electric cars?

Euro 7 only applies to new vehicles. However, the increased cost of new petrol and diesel vehicles under Euro 7 may make used electric cars even more attractive as alternatives.

Taking Action: Future-Proof Your Fleet Today

Euro 7 emissions standards represent a clear signal: the future of transport is electric. For fleet managers, the question isn't whether to transition to EVs, but when—and the answer is now.

By implementing an electric car salary sacrifice scheme today, you can:

  • Beat Euro 7 compliance concerns entirely

  • Lock in current low BiK rates and substantial savings

  • Position your business as an environmental leader

  • Provide valuable employee benefits at no cost to the business

  • Ensure long-term fleet sustainability

Contact The Electric Car Scheme today to discover how we can help you transition to a fully Euro 7 compliant electric fleet whilst saving your employees 20-50% on their next car.

Are you an employer?

BOOK A DEMO

Are you an employee?

SEE AVAILABLE CARS

You Might Also Like…

Last updated: 09/02/2026

Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme's terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.

Copyright and Image Usage: All images used on this website are either licensed for commercial use or used with express permission from the copyright holders, in compliance with UK and EU copyright law. We are committed to respecting intellectual property rights and maintaining full compliance with applicable regulations. If you have any questions or concerns regarding image usage or copyright matters, please contact us at marketing@electriccarscheme.com and we will address them promptly.

Oleg Korolov

Oleg is a Marketing Manager at The Electric Car Scheme who writes about electric vehicle market trends, policy developments, and salary sacrifice schemes. Through his analysis and insights, he helps businesses and individuals understand the evolving EV landscape and make informed decisions about sustainable transportation.

Next
Next

Salary Sacrifice vs Business Leasing: Which Is Best In 2026?