Electric vehicle (EV) sales in the UK have slowed down due to the announcement of a new pay-per-mile tax for EVs. This tax will be introduced in April 2028 and is set to charge drivers 3p per mile. The policy aims to offset lost fuel duty from traditional petrol and diesel vehicles.
• Sales Growth Slump: In November, EV sales grew by only 3.6%, the lowest in two years. This was related to concerns over the upcoming road tax.
• Government Response: Mike Hawes from the Society of Motor Manufacturers and Traders (SMMT) emphasized that this slowdown should prompt the government to encourage EV adoption rather than penalize it.
• Proposed Tax Details: The new pay-per-mile tax would cost the average EV driver around £250 per year. Car drivers currently pay about £600 in annual fuel taxes.
• Sales Performance: In November, nearly 40,000 EVs were sold, making up 26.4% of new car sales, but this is below the 28% target set for manufacturers to avoid fines.
• Market Concerns: The car industry fears that the new tax will deter consumers from buying EVs, especially since they are generally more expensive than petrol cars.
The introduction of a pay-per-mile tax on EVs has already impacted sales growth negatively. Stakeholders in the automotive industry worry that this taxation could hinder the transition to electric vehicles. There is a call for the government to re-evaluate its approach to ensure the growth of the EV market continues without punitive measures.
https://dailysceptic.org/2025/12/04/electric-car-demand-sinks-as-drivers-face-pay-per-mile-tax/
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