Why the new Hyundai Ioniq could save company car drivers tax and fuel bills

  • Hyundai targets business drivers with new eco range
  • Half of all sales will be to company car drivers
  • Low benefit-in-kind tax aimed at cutting bills
  • Hyundai is actively targeting company car drivers with its new Ioniq family of electric cars - wooing them with the promise of lower tax and fuel bills.

    It's unique in offering three different powertrains in one range, each designed for a different user need:

    • Ioniq Electric Battery power only, 174-mile range, ideal for town use
    • Ioniq Hybrid E-motor assisted by 1.6-litre petrol engine, 83mpg claimed economy
    • Ioniq Plug-in Hybrid E-motor boosted by 1.6, charge up for 30+ mile electric range

    The cleanest car is, naturally, the Electric model with a CO2 rating of 0g/km for the lowest benefit-in-kind bills of all. But the petrol-assisted Hybrid pair also have low emissions: 79g/km for the Hybrid and 32g/km for the Plug-in Hybrid due in the second quarter of 2017.

    Hyundai Ioniq: targeting Britain's business drivers

    Sylvie Childs, product manager at Hyundai UK, told Parkers the Ioniq would appeal to company car users. "We're anticipating a 50:50 sales split between private retail buyers and fleet drivers," she said. Hyundai expects to sell 4,000 Ioniqs a year in the UK by 2018.

    The new Hyundai Ioniq

    "We have a real opportunity with this car because of its attractive benefit-in-kind rating. Company car tax is changing, but we think the Ioniq will be more attractive than many petrol or diesel cars under the current scheme."

    Check out the Parkers Glossary for a full explanation of how hybrid cars work.

    Undercutting the Toyota Prius

    Childs added that the new Ioniq, which went on sale at the end of October 2016, undercuts rivals the entry-level Toyota Prius by £3,300 and the 30kW Nissan Leaf by £700.

    "The running costs of the Ioniq will be very attractive to business users; the residual value of the hybrid is 60% after three years/60,000 miles, so lease rates will be very competitive."

    However, she admitted that residuals on the Electric are weaker; the market is still suspicious of full EVs and the durability of batteries over the long term - pricing experts are predicting the Ioniq Electric will be worth a less impressive 35% after the same period. This could push up lease rates accordingly.

    To counter this fear, Hyundai is offering its usual five-year, unlimited mileage warranty on the Ioniq - with eight years/125,000-miles cover of the entire electrical powertrain.

    Read the full Parkers Hyundai Ioniq review here

    Cash or company car? Our guide to picking your perks

    Sign up to the Parkers company car driver newsletter here

    More motoring jargon explained: the Parkers automotive glossary