Pay-per-mile road tax would put half of drivers off EVs

AA and Electrifying.com survey reveals many believe EVs are expensive to run

The prospect of pay-per-mile road charging for electric vehicles would make over half of UK less likely to switch to a new or used EV, according to new research by the AA and Electrifying.com 

In a survey of around 12,000 motorists, 55% said the proposed mileage-based Electric Vehicle Excise Duty (eVED) would deter them from going electric.

The survey also reveals that consumer confidence in the financial case for EVs remains fragile. Drivers were asked whether they agreed with the statement: “The overall running costs of an electric car are lower than those of a petrol or diesel car” Just 14% agreed.

This is despite independent analysis showing EVs are cheaper to run due to lower fuel and maintenance costs.
Awareness of cost-saving electricity tariffs that help improve affordability is also low. Just 25% of drivers were aware of off-peak energy deals that allow EV owners to charge at substantially reduced rates overnight.

Ginny Buckley, founder and chief executive of Electrifying.com, said: “This data should be a wake-up call for Whitehall. Once again, we’re seeing confusing government decision-making around electric vehicles that raises questions rather than builds confidence among car buyers considering making the switch.

“As our survey shows, the proposed pay-per-mile tax sends the wrong signal at the wrong time. Instead of accelerating the EV transition, it risks slamming on the brakes. You cannot claim to support mass adoption while undermining it with the threat of additional taxation.

“No driver would expect to move forward with one foot on the accelerator and the other on the brake – and neither should the government.”

Edmund King, AA president, said: “This Electrifying.com and AA survey shows that there is still some way to go to convince most drivers to go electric. The latest AA UK Readiness Index*, which currently stands at 48.8 out of 100, also shows that the conditions which would help most drivers go electric have not yet been met.  

“Mixed messages from the government are confusing drivers and leaving uncertainty. The early adopters have already made the switch, but mainstream motorists need more accurate information to convince them, even with e-VED, if they can charge at home, they will still be better off going electric. The EV transition is essential, but drivers still need the right incentives and information to make that leap of faith.”

Toby Poston, BVRLA chief executive said: “This research should give policymakers real pause for thought. When more than half of drivers say pay-per-mile charging would deter them from going electric, it is clear this is the wrong tax at the wrong time.

“Any reform must protect those who have already made the switch in good faith; it should not retrospectively move the goalposts for drivers and businesses who have invested early.

“We need a rethink. The future of road taxation must be fair, workable and supportive of continued EV adoption. eVED ticks none of those boxes.”