The Kinetic Brief: October 2026

Used EV values climb, the Electric Car Grant widens and Jaguar reinvents itself

THE KINETIC BRIEF

Quick insights that keep your fleet plans moving

This Month's Headlines

September's numbers are in, and they tell an interesting story: used EV values climbing for the sixth month running, which feeds straight through to sharper lease pricing, and a new record for electric car registrations. Plus what's actually changing for company car tax and VED from next April, the Electric Car Grant quietly picking up more eligible models, and Jaguar's big relaunch.

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1. Used EV values are climbing, and that's good news for your monthly rate

Fresh data from Cazana shows three-year-old EVs posted the biggest residual value rise of any fuel type for the sixth month in a row in September, up 1.6% in the month and nearly 9% over six months, roughly £2,000 on the average car. Petrol, by contrast, barely moved, down just 0.5%, so this isn't an EV-versus-combustion story so much as EVs finally pulling ahead after years of funders pricing in heavy depreciation risk.

Here's why that matters for anyone leasing: your monthly rental is built on the funder's forecast of what the car will be worth at the end of the contract, the smaller that drop, the lower the rental. Stronger EV residuals mean funders can afford to be more competitive on pricing, which is a big part of why EV lease deals have been getting sharper through the year rather than more expensive as the grants wind down. Good news if you're renewing onto electric, and one more reason the old "EVs depreciate faster" assumption is well out of date.

2. September set a new record for electric car sales

New car registrations were up 12% in September, the tenth month of growth in a row, but the real story is electric. Battery electric cars took a record 28.3% share, nearly 100,000 registered in the month alone, up over a third on last year. Year to date, BEVs are sitting at 26.2% of the market.

Worth a note of context though: that's still some way short of the 33% zero emission vehicle mandate for 2026. SMMT reckon it'd take around 265,000 more BEV registrations in the final quarter just to hit the target, which gives you a sense of how much is still riding on this last stretch of the year, and why manufacturer discounting is unlikely to let up any time soon.

3. Company car tax and VED both move in April 2026, here's what to plan for

A few changes land together next April that are worth building into any renewal conversation between now and then. Benefit in kind rates rise a percentage point across the board, electric cars move to 4%, which on a £40,000 EV takes a basic rate taxpayer's monthly cost from roughly £20 to £26.67. VED rises with inflation, and the expensive car supplement, which catches EVs over list price thresholds, goes up to £440.

None of this changes the basic case for electric, EV BIK rates are confirmed out to 2029/30, rising gradually from 4% to 9%, well below the 37% top rate for petrol and diesel. But it's a reminder to run the actual numbers for each driver rather than assume last year's figures still hold.

4. The Electric Car Grant keeps widening its net

More models are qualifying for the Government's Electric Car Grant as manufacturers get their eligibility sorted. Kia's just added its PV5 Passenger seven-seater to the list, £1,500 off under Band 2, alongside the EV2, EV3 and EV4, with top-rate Band 1 cars worth £3,750 off. It's a similar story across other manufacturers as more models clear the scheme's criteria.

Worth checking against anything you're currently quoting or considering, the list has moved on noticeably since the grant launched and it's easy to be working from an out of date picture of what qualifies.

5. Jaguar's reinvention is here

Jaguar unveiled Type 01 this month, the first model under its radical relaunch, revealed in New York and built across Solihull, Wolverhampton and Halewood. Fully electric, up to 1,030PS and up to 400 miles of range, and a genuinely different design language from anything the brand's done before.

It's a significant moment regardless of what you make of the styling, not least because it shows JLR's product pipeline held together through a difficult year that included a major cyberattack and months of production disruption. Order books aren't open yet, so nothing to action for fleets right now, but one to watch as pricing and lead times become clearer.

6. EV Deal of the Month

Skoda Enyaq 85 SportLine

This month's pick is the Skoda Enyaq 85 SportLine, 210kW, 84kWh battery. Up to 354 miles of WLTP range, sharp SportLine styling, and single-motor efficiency that keeps running costs down for business users who want range without the premium price tag.

Business Contract Hire from £350.84 + VAT per month - ENQUIRE NOW

Pricing is based on a 2 year Business Contract Hire agreement covering 10,000 miles per annum. Initial rental £2,105.04 + VAT followed by 23 subsequent monthly rentals of £350.84 + VAT. P11D £48,635.00. Other contract terms available. This offer is only available through Škoda Financial Services.