Secto promotes societally sustainable driving

Secto leased its first electric car in 2010. Since then, we have actively influenced public opinion to promote sustainable driving. Secto has risen to one of Finland’s thought leaders in sustainable driving. The media regularly turns to us for comments and expert statements. We have commented both the total costs of driving and the role of sustainable driving in achieving climate goals.

In 2024 we emphasised in presentations given at various events the bearing of further reducing the emissions of driving on achieving climate goals.  We also highlighted the role of the total cost of ownership in company cars. Even if, for example, an electric car would be more expensive to acquire than its internal combustion engine counterpart, driving a more climate-friendly electric car would eventually accumulate fewer total costs thanks to its cheaper source of energy.

We also continued participating in discussions regarding the Finnish government’s proposed removal of reduced taxation for low-emission company cars in 2025. According to a study commissioned by us, that kind of a change in taxation would have made achieving the climate goals set by our government a lot more difficult. According to calculations by Finland’s Ministry of Finance, maintaining the practice that has been in effect until 2025 would result in annual tax losses of 59 million euros for the state. This publicised calculation was based on the assumption that an employees’ car benefit is added to their salary, and that choosing a low-emission or emission-free car would thus reduce the employee’s taxable income. However, based on a study we commissioned this assumption is incorrect. The study indicated that nearly 80 % of car benefit recipients operate under a total salary model, where the car benefit is part of the total salary and does not affect the employee’s taxable income. Thus, the savings from removing the reduced taxation would be only a fraction of the Ministry of Finance’s estimated figure.

We also conducted a survey among our own customers on the effects of removing the reduced taxation. This survey revealed that most company car drivers with low-emission or fossil-free cars would give up their cars if the reduced taxation were removed.

Tax incentive for fully electric company cars extended

Our position garnered significant attention, with national media outlets such as Kauppalehti, Iltalehti, and Talouselämä interviewing CEO Matias Henkola for their articles. We continued our influencing work until the government finally made a favourable decision. Even though Finland’s economy still needs significant spending cuts and tax increases, the government decided in 2024 to extend the tax incentive for fully electric company cars until the year 2029. The government’s policy is good news for reducing overall transportation emissions and achieving Finland’s climate goals. This benefits all Finnish company car drivers, who have chosen a low-emission vehicle. More companies commit themselves to work for lighter carbon footprint and see reducing the emissions of their fleet as one of the most efficient ways to make an impact.

Company cars still play a significant role in making low emission driving more common. In 2024, already over 44 % of new company cars were fully electric. The average usage span of company cars is approximately three years, after which they move on to consumer market as used cars. About every fifth car on our roads is either current or former company car. Out of the total number of cars on Finnish roads, only 4,3 % are fully electric and 6 % plug-in hybrids. From the viewpoint of achieving climate goals, incentives to acquire a low-emission company car are still required. (Statistics: The Finnish Information Centre of Automobile Sector 1/2025)