Government’s mixed messages are confusing EV buyers

AA releases latest analysis of UK electric vehicle markts

Mixed messages from government policy and continued weakness in EV demand risk undermining the longer-term health of the market.

This warning comes from the AA, which is particularly concerned about the impact of government actions on fleets and manufacturers that underpin new EV sales.

The quarterly AA EV Readiness Index tracks eight indicators influencing drivers’ readiness to switch to electric vehicles, combining them into a single Readiness Rating measuring how practical and attractive EV ownership is for motorists.

In March the overall readiness score rose to 53.8 in Q1 2026 (Q4 2025: 48.8). The increase reflects improving affordability in the used EV market and gradual progress on key consumer barriers. 

While conditions improved during the quarter, the Index highlights a market that is still in transition rather than at mass adoption, with affordability improvements driven largely by falling used EV prices rather than stronger consumer demand. 

Used EV prices boost readiness score

The increase in the overall Readiness Rating was largely driven by falling prices in the used EV market, which have now dropped below the cost of equivalent petrol cars for the first time since the Index launched in September 2025. 

Used EVs were 10% cheaper than comparable internal combustion engine vehicles during the quarter.

The availability of lower-priced vehicles – particularly from ex-fleet supply entering the market – has created new opportunities for motorists considering switching to electric.

However, the AA cautions that rapid depreciation presents a significant challenge for fleets and manufacturers, which rely on strong residual values to support new vehicle sales and leasing models. 

Charging and upkeep trends show gradual progress

Progress was also recorded in other areas tracked by the EV Readiness Index:

• Charging score: 43 (Q4 2025: 40), with infrastructure expanding to 118,321 public chargers, around 39.4% of the government’s 2030 target of 300,000.
• Upkeep score: 60 (unchanged), with EVs continuing to perform well in breakdown data, with 88.7% fixed at the roadside.

Running out of charge accounted for just 1.5% of callouts, a dramatic fall from historic levels and evidence that range anxiety is gradually receding. 

Confidence gap continues to hold back used EV demand

Despite improving affordability, the Index highlights a persistent confidence gap among drivers considering used electric cars.

Polling of more than 12,000 AA members found that:

• Only 3% of drivers are confident about buying a used EV
• 22% feel confident they would know how to charge one
• 30% feel less confident driving an EV compared with petrol or diesel cars
• 5% say prospect of eVED may put them off buying a new or used EV.

Consumer understanding of EV costs also remains limited. Only 14% of drivers believe EV running costs are lower than petrol or diesel, despite strong evidence that maintenance and home charging can be significantly cheaper.

The research suggests that better information and clearer reassurance on battery health and reliability will be critical to unlocking demand, particularly in the used market.

Policy clarity needed to maintain momentum

The AA says that consistent policy signals will be essential to building consumer confidence, particularly following the recent debate around the proposed eVED mileage-based tax for EVs from 2028, which has created uncertainty for some drivers considering the switch.

Edmund King OBE, AA president, said: “Our AA UK EV Readiness Index shows that conditions for switching to electric cars are improving, with cheaper used EVs opening the door for more drivers. But the reality is that the transition remains fragile.

“Lower prices may be good news for motorists looking for a bargain, but if values fall too quickly it becomes unsustainable for fleets and manufacturers who buy most new electric cars in the first place.

“At the same time, mixed messages from government – including uncertainty around future taxes such as eVED – risk denting confidence just as the market is beginning to mature from the early adopters.

“To keep momentum going we need clearer long-term policy signals and better information for drivers so they can make an informed choice when or whether to switch.”