Mitsubishi Boss Outraged Over London’s New Tax That Rates The Outlander PHV Like A Range Rover

7 months ago by Mark Kane 34

Mitsubishi Outlander PHEV’s road to low taxes closed

UK’s tax policy – new Vehicle Excise Duty (VED) – is criticized by Mitsubishi as being incomprehensible.

The Outlander PHEV (at least those optioned to more than £40,000 before incentives – full price list below) is now charged in taxes like the Range Rover SDV8, a vehicle which has five times higher CO2 emission.

Mitsubishi Outlander PHEV

Mitsubishi Outlander PHEV, the most popular plug-in hybrid car in UK, is hit by higher taxes from April 1.

After Plug-In Car grant was lowered from £5,000 to £4,500 (BEVs) and £2,500 (PHEV with prce tag below £60,000), the new VED taxes deteriorate the environment for plug-in hybrid vehicle adoption.

From April 1, 2017 only BEVs (and other zero emission cars) keep the current tax relief at £0.

The plug-in hybrids (emissions: 1-50 g/km of CO2) are counted at £130 annual, but if their price exceeds £40,000 there is £310 annual supplement for five years from the second year of registration

“The Mitsubishi had a VED rate of £10 in the first year of ownership, compared with the Range Rover’s £1200. However, for the ensuing five years, both vehicles will attract a £310 supplement on top of their VED rates because they cost more than £40,000.

An Outlander PHEV owner will pay £130 in VED, plus the £310 supplement, making £440 per year. The Range Rover will attract £140 in VED, making £450 when the £310 supplement is added.”

Mitsubishi UK boss Lance Bradley doesn’t understand why the Outlander PHEV falls where V8 cars sits at 219 g/km of CO2 emission.

The Outlander PHEV trim levels start at £34,249 in the UK, and top out at £45,999:

Mitsubishi Outlander PHEV lineup and pricing in the UK for 2017

source: Autocar

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34 responses to "Mitsubishi Boss Outraged Over London’s New Tax That Rates The Outlander PHV Like A Range Rover"

  1. Rich says:

    If only Mitsubishi had USA sales to fall back on while this gets sorted out.

    1. ffbj says:

      …twisting the knife. +1

        1. mx says:

          Spitting on grave.

  2. William says:

    All EVs in California just got the Annual $100.00 Tax Bump, from our revenue generators in Sacramento. Gas at the Pump, got a good Tax Bump from our Legislators as well. Cali roads need some repairs!

    At least Cali didn’t get the Tax Punishment Georgia gave its EV registrants last year!

    1. Mark.ca says:

      After getting 10k in credits i will gladly pay $100/y for the roads.

      1. mx says:

        State should be paying EV makers for clean air, lower asthma and lung cancer costs.

  3. Roy_H says:

    It’s simple, all Mitsubishi has to do is lower the price of the Outlander PHEV below ­40.000. (how do you do the pound symbol?)

    1. Copy & Paste, from the article, if all else fails!

      My android phone shows the £ symbol, under my ‘0’ (Zero) menu location, when I switch to the symbols, punctuation, and math formulas!

    2. Martin Winlow says:

      ‘UKP’

      1. JIMJFOX says:

        Currency exchange rate sites quote ‘GBP’ generally…

  4. Roy_H says:

    £40,000

  5. Gazz says:

    £40,000 is a heap of money. If you have that to spend on a car extra Tax should be the norm. Otherwise us normal earning people will end up paying for it.

    1. MikeM says:

      £40,000 ≈ $50,000

      Would be interesting to know just how many Outlanders are optioned at that level.

      And just what do we (they) get for that much money?

      1. arne-nl says:

        Do no forget that the price includes ~20% VAT

  6. It may be unfair, but it still a hybrid and hybrids have to go, the future is BEV!

  7. Mikael says:

    The problem is not the Outlander being taxed but that the Range Rover should have at least another £5 000 per year in taxes.

    Some vehicles should not be on the road…

    1. mx says:

      Bingo!

  8. unlucky says:

    It’s being hit with a luxury tax. And at £40,000 it seems like it is one.

    As to the g/km claim, the EU emissions and consumption figures for plug-ins are ridiculous. They have to fix their testing methodology.

    1. Mikael says:

      WLTP…

  9. Walter says:

    Outlanders are by far NOT green cars. So, London is right this time (the Brexit is another thing however).

    1. mx says:

      It is if it replaces an SUV, so, you’re kinda wrong.

      1. Martin Winlow says:

        Unfortunately, you would be right only if all Outlander drivers used their ‘electric only’ capability to the full. As it is Mitsubishi have stated (along with BMW) that hardly any of their PIHs ever get plugged in. So, on that basis (and assuming it is true) it is right and proper that the Outlander be treated like a Range Rover.

        1. PHEV driver says:

          I keep hearing this nonsense over and over again. Of all the people I know owning a Mitsubishi PHEV, all of them charge to the max – myself included. It is more fun to drive, and way cheaper than gas. I admit the electric range could be improved though.

          As for the price tag: any other phev in the same equipment category has at least 60% added to that 40k

        2. Mikael says:

          I would very much like to see a good source on that. Nothing I’ve seen in statistics, surveys and info. from the automakers has shown that PHEVs don’t get plugged in, rather the opposite.

    2. arne-nl says:

      So right, Londoners voted overwhelmingly for ‘stay’.

      1. Martin Winlow says:

        Yep, but only because the majority of people living there were not born in England!

        1. JIMJFOX says:

          Yep. London is 55% non-white but it depends on how ‘London’ is defined- Inner, Outer or Greater.
          More importantly-

          Religion 2001 2011

          Christian 58.23% 48.42%
          No religion 15.76% 20.73%
          Muslim 8.46% 12.39%

      2. JIMJFOX says:

        That they did- happy to be a colony of the EU.
        Can you imagine Americans voting for something similar?? Obviously nothing like as stupid as Londoners [ie inhabitants of ‘Londonistan’] with a muslim mayor…hope you’re saving up to buy a prayer mat- you’re gonna need one!

        Way O/T but reply needed

    3. JIMJFOX says:

      Why is Brexit ‘another thing’?

  10. Paul says:

    If I chose to enjoy a 40 grand car instead of going to the pub every weekend I should not be hammered for it in tax. Unfortunately I can’t afford that because I have already been hammered by tax.

    1. mx says:

      Are booze taxes that high?

      1. Martin Winlow says:

        Is the Pope a catholic?

    2. JIMJFOX says:

      20 % VAT- and I bet there are still hidden sales taxes, customs duties, etc.
      I got out in the afterglow of the miners strikes and the 3 day week. UK Governments have been disastrous since Thatcher- who I didn’t like but did what was needed…