A brand new per-mile tax on electrical automobiles might deter practically half of potential consumers from switching to an EV, in keeping with new analysis from AutoTrader, elevating considerations that authorities coverage on electrical automobile adoption is turning into more and more contradictory.
From 2028, drivers of electrical automobiles will face a brand new cost of 3p per mile travelled, a transfer introduced by Chancellor Rachel Reeves. AutoTrader’s chief government, Nathan Coe, stated the choice risked undermining years of efforts to encourage drivers to maneuver away from petrol and diesel.
Coe described the coverage as “incoherent and inconsistent” with the federal government’s said ambition to speed up the transition to electrical automobiles, warning that it might gradual momentum at a important stage.
AutoTrader’s newest report, No Driver Left Behind, discovered that whereas 62 per cent of motorists are at the moment contemplating an electrical automobile as their subsequent automobile, that determine falls sharply as soon as price and revenue are taken under consideration. Amongst households incomes lower than £40,000 a yr, simply 48 per cent are contemplating an EV, in contrast with 73 per cent of these with larger incomes.
Electrical automobiles stay, on common, round 17 per cent dearer than their petrol equivalents, regardless of falling battery prices. The analysis exhibits that buy worth, somewhat than charging entry alone, stays the largest barrier to adoption.
Age and placement additionally play a major position. Whereas 72 per cent of drivers aged 17 to 34 say they’re open to going electrical, solely 35 per cent of over-55s really feel the identical. Metropolis dwellers seem extra receptive than these in rural areas, with 72 per cent of city drivers contemplating an EV in contrast with a lot decrease ranges in additional distant areas.
That discovering challenges the belief that off-street parking — extra widespread in rural areas — mechanically makes the change simpler. AutoTrader stated considerations about vary, charging reliability and operating prices proceed to affect choices no matter home-charging entry.
Gender variations have been additionally evident, with girls round ten proportion factors much less probably than males to contemplate an EV. Considerations over charging availability and battery vary, notably for household use, have been cited as key elements.
The report additionally discovered that ethnic minority motorists usually tend to contemplate electrical automobiles, though AutoTrader famous this will likely partly mirror the upper proportion of those drivers dwelling in cities, the place charging infrastructure is extra developed.
Ian Plummer, AutoTrader’s chief buyer officer, stated price remained the defining challenge. “We’re at a pivotal second for the UK’s electrical automobile transition, however there’s nonetheless a lingering wealth divide,” he stated. “If lower-income households can’t entry reasonably priced electrical vehicles, we threat making a two-tier system the place cleaner, cheaper motoring is just for many who can already afford it.”
Plummer added that the answer lies in increasing the provision of lower-priced electrical fashions, enhancing transparency round battery well being and addressing charging challenges for drivers with out driveways.
The findings come regardless of sturdy headline progress in EV gross sales. In accordance with Society of Motor Producers and Merchants, practically one in three new vehicles bought in Britain final month was totally electrical. Nonetheless, 2025 was the primary yr during which general EV gross sales did not constantly meet the federal government’s annual targets, with all-electric automobiles accounting for 23.4 per cent of latest registrations.
Producers that fall in need of mandated EV gross sales thresholds face monetary penalties or should buy credit from rivals that exceed them, including additional stress to a market already grappling with coverage uncertainty.
