What is WLTP?
WLTP (Worldwide Harmonized Light Vehicle Test Procedure) is a new protocol used to measure fuel consumption, CO2 and other pollutant emissions. One of the primary objectives of the WLTP procedure is to better align the laboratory results with realistic vehicle usage based on current engine technologies. Given the importance of CO2 targets for the economic performance of vehicle manufacturers worldwide, WLTP also aims to harmonize test procedures on a global level, in order to create an equal playing field in the market.
The CO2 measurements from the WLTP tests are included in the vehicle's certificate of conformity, which is used to determine whether car manufacturers comply with the CO2 targets set by the European Union. In many countries, the new CO2 test results will also be considered for the taxation of car registration and ownership.
In addition to WLTP, the EU Commission will enforce Real Driving Emissions (RDE) as a supplementary type approval requirement for the EU6d Emission Regulation. Unlike NEDC and WLTP, the Real Driving Emissions tests will measure pollutants such as NOx while vehicles are driven on the road. This will confirm whether the results of the lab tests are representative of normal usage conditions.
How will WLTP affect your business?
The introduction of WLTP may influence your car policy in several ways.
If your current lease scheme links your employee's car choice to a maximum CO2 value, transitioning from the NEDC to the WLTP system will have implications for employee satisfaction, sustainability, and costs. The calculated CO2 output will increase in 2018 by 7 grams per kilometre on average.
The increase in CO2 output has an effect on the cars your employees can choose from. The addition of the increased CO2 factory option under the WLTP method also influences the maximum calculated CO2 output. There are two possibilities:
- If the CO2 thresholds are not increased, the number of cars your employees can choose from will be reduced by 15%. This reduction primarily concerns models with more powerful engines. Cars with lighter engines will remain available.
- If the CO2 thresholds are increased, the number of cars your employees can choose from will remain the same.
Under the current circumstances, your clients' actual car-related CO2 footprint is higher than the NEDC CO2 footprint. The new WLTP method has two options:
- If the current CO2 maximum remains unchanged under your client's current car scheme (i.e. fewer car choices), the difference relative to the current CO2 footprint (according to NEDC) will remain more or less the same.
- If the current CO2 maximum is increased (i.e. same car choice), this may increase the CO2 footprint (according to WLTP).
In short, the difference between the theoretical CO2 footprint and the actual CO2 footprint is smaller under the WLTP method. Actual CO2emissions will of course remain the same for any particular car, regardless of the method used.
At the moment, this is not expected to have a financial impact on the purchase value of the car, given that the Dutch government has indicated that the updated BPM table will be budget-neutral.
Transition from NEDC to WLTP
As of 1 January 2019, the WLTP will officially serve as the basis for BPM. The Ministry of Finance will adjust the BPM table accordingly, while maintaining a budget-neutral position. The NEDC will serve as the basis for the BPM until 1 January 2019.
More information (from ACEA)
When will the WLTP be implemented?
Key dates for the roll-out of WLTP are:
Passenger Cars + LCV cat. N1 class I
|LCV cat. N1 class II/III (>1,305 kg)
|Sep. 2017||WLTP testing for newly homologated vehicles. BPM based on an NEDC derived from WLTP||No change|
|Sep. 2018||Manufacturers must perform WLTP testing for all new vehicles. BPM based on an NEDC derived from WLTP (see also: Test results).||WLTP testing for recently homologated vehicles.|
|Jan. 2019||WLTP values lay the foundation for determine the BPM of all new vehicles, with the exception of stock.|
|Sep. 2019||Manufacturers must test all new vehicles, including stock, according to the WLTP method.|
Please note: the new WLTP does not affect vehicles registered before 1 September 2017.
Until 1 January 2019, an NEDC derived WLTP CO2 value will be used to determine the BPM.
Which countries will adopt WLTP?
The WLTP procedure will be adopted by all UNECE members (EU-28, Norway, Iceland, Switzerland/Lichtenstein, Turkey, and Israel) according to the above timeline. Other countries that signed the WLTP agreement – including China, Japan, South Korea, Russia, India, and the United States – are currently in a monitoring position and have not yet communicated any implementation timeline.
Which changes can be expected?
The test procedure
Both the NEDC test and the WLTP test are laboratory tests. They ensure that the same test conditions are maintained for all vehicles, such as wind, temperature, traffic density, and road quality.
|Number of test cycles||1||Max. 4|
|Cycle duration||20 minutes||30 minutes|
|Cycle distance||11 km||23,25 km|
|Average speed||34 km/u||46,5 km/u|
|Maximum speed||120 km/u||131 km/u|
|Impact of options||No||Yes|
|Test temperature||Between 20-30°C||Constant op 23°C|
- A 7-gram increase in CO2 on average for WLTP versus NEDC. (Source: INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION.)
- The NEDC measurement derived from the WLTP may differ from the original NEDC measurement.
The results of the WLTP test are representative of average operating conditions. Individual driving behaviour may differ.
Until 2021, both the NEDC and WLTP standards will be maintained, whereas NEDC will remain the legally binding norm for CO2 target monitoring of manufacturers (95 grams in 2021). The European Union will therefore need to review the CO2 targets for 2021 based on WLTP emission results.
How can Alphabet support my business?
- Alphabet will inform your clients of the impact of WLTP, including the financial impact on the purchase value of the car, given that the Dutch government has indicated that the updated BPM table will be budget-neutral.
- We are also engaging with all stakeholders in the automotive supply chain to investigate how NEDC and WLTP values can be integrated into the business processes, respecting all local and international legal and other requirements.
- Your lease consultant would be happy to review your current car policy with you.
WLTP is a legally binding certification requirement and applies equally to all manufacturers.
WLTP will introduced in the EU-28 countries as well as in Norway, Iceland, Switzerland (and Liechtenstein) and the EU user states Turkey and Israel.
In principle, the change to WLTP does not change the way vehicles are already approved. In the first step of the introduction from September 1st 2017, WLTP is initially relevant for new type approvals. The manufacturers must apply to the relevant competent authorities if they want to place a new vehicle on the market or if a model is subject to significant technical modifications. From September 1st 2018, the WLTP guidelines are then mandatory for all new registrations.
In many countries, car taxation is partly measured by the CO2 emissions of a vehicle. However, the extent to which the new test procedure affects this regulation has not yet been clarified to date (as of September 2017) and is still regulated by national law.
Optional extras can alter the weight or the aerodynamics of the vehicle and thus also affect fuel consumption and emissions. In the selection of special equipment during the configuration of a vehicle, it will therefore be recognisable in the future, how the CO2 value of the vehicle changes.
In reality, the consumption and CO2 emissions of a vehicle are dependent on a number of factors, which cannot be reconstructed in the laboratory with WLTP 1: 1. A key factor here are the different driving styles. This means that if two drivers drive the exact same vehicle under the exact same conditions in real road traffic, different values will necessarily result, for example, by individual acceleration and braking behavior.