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Omoda and Jaecoo launch EV tax rebate – could this be the start of a new trend?

By Jodie Chay Oneill | November 27, 2025

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Omoda and Jaecoo offer a £600 EV tax rebate ahead of the UK’s future pay-per-mile charge.

Omoda and Jaecoo launch EV tax rebate – could this be the start of a new trend?

In response to the 2025 Autumn Budget, Chinese brands Omoda and Jaecoo have introduced an EV tax rebate worth the equivalent of 20,000 miles, giving buyers early savings ahead of the UK’s upcoming pay-per-mile system. The incentive applies to the fully electric Omoda E5 and Jaecoo E5 SUVs and is intended to offer a financial head start on a tax that won’t begin until 2028.

Chancellor Rachel Reeves confirmed that from 2028–29, electric car owners will pay 3p per mile. To pre-empt this, Omoda & Jaecoo is offering customers a rebate equal to 20,000 miles at that rate - around £600 - funded directly by the manufacturer.

The offer is available now to anyone purchasing either model through the brand’s national retailer network on an approved 48-month finance plan. Although the tax is still years away, the company says providing the saving upfront allows drivers to benefit immediately and protects them against rising running costs later.

Gary Lan, CEO of Omoda & Jaecoo UK, said the aim is to make the shift to electric “as smooth as possible” for buyers. “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,” he said. “These cars represent the forefront of electric mobility, and this initiative reflects our commitment to making clean, efficient, and intelligent transportation accessible from day one.”

What’s on offer?

Omoda E5

This updated model features a 61kWh battery with an estimated 267-mile WLTP range. Charging speeds have improved, offering 130kW DC and 10.3kW AC capability, along with an integrated heat pump for better winter efficiency. Comfort has also been upgraded with a new adjustable passenger seat.

In use, the Omoda E5 delivers strong tech for the price and is pleasant to drive. The design and cabin feel premium, the suspension deals well with rough roads, and the steering is accurate. Tyre noise does increase at higher speeds, but overall it’s an impressive package.

Jaecoo E5 Luxury

The Jaecoo E5 also uses a 61kWh LFP battery, producing 207hp and offering up to 248 miles of range. It accelerates from 0–62mph in 7.7 seconds and can charge from 30–80% in 27 minutes via 110kW DC fast charging. Home charging at 11kW AC is supported too.

The Jaecoo E5 covers the essentials well: it’s fairly priced, practical, and offers a solid range. It’s not standout in any single area, and the styling is a little plain - the front end in particular feels less refined than some rivals. But like a classic margherita pizza, it delivers exactly what you need without overcomplicating things.

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