With the Government considering feedback to a consultation on its new pay-per-mile tax on electric vehicles (EVs), new research from Zenith suggests it could spark a return to petrol and diesel cars.
Almost three-quarters of drivers (74%) are concerned about the potential cost impact of a pay-per-mile tax, with four-in-10 (40%) saying they would consider switching back to an internal combustion engine (ICE) vehicle if running costs of an EV became more expensive.
The fourth edition of Zenith’s EVXperience Report (EVX4) report also reveals that nine-in-10 EV drivers (88%) believe the Government is failing to do enough to support the UK’s transition to net zero.
Ensure you always get Fleet News insight. Make us your preferred source on Google
While Government-backed incentives, such as low benefit-in-kind (BIK) company car tax rates, have proven effective in encouraging uptake, recent U-turns on the deadline for the sale of new petrol and diesel cars, and the recent announcement of a new pay-per-mile tax for EV drivers, have impacted confidence in the delivery of a successful transition.
The pay-per-mile tax, called electric vehicle excise duty (eVED), would result in zero-emission cars attracting a new charge of 3 pence per mile (ppm) in addition to existing road taxes from April 2028.
PHEVs will also be hit with the new tax, being charged at 1.5ppm, with both pence per mile rates increasing annually with CPI.
Zenith’s report which draws on feedback from more than 3,000 EV drivers, found that nearly two-thirds (63%) believe the Government is not doing enough to support the green transition, while a further quarter (25%) acknowledge some progress but say significantly more action is needed. Only 6% believe current support levels are sufficient.
Nevertheless, satisfaction with EVs remains high, with almost three-quarters of EV drivers (74%) believing electric vehicles are cheaper to run than petrol or diesel equivalents.
In addition, 61% are confident predicting their EV running costs over the next three years. This level of certainty remains out of reach for many petrol and diesel drivers navigating today’s volatile fuel prices.
Andy Wolff, managing director of Zenith’s corporate division, said: “These findings highlight a clear disconnect between the government’s stated ambitions and the confidence felt by EV drivers on the road, with inconsistent policy undermining trust in the transition.
“Drivers are being offered tax incentives and grants to encourage EV adoption while simultaneously facing uncertainty around future taxation, including proposals such as pay-per-mile charges. These conflicting messages mean only 15% of EV drivers feel optimistic and confident about the transition to electric vehicles.”
Wolf says that without a coherent, long-term framework that supports both new and used EV buyers, there is a “real danger that the progress made to date will stall or be reversed altogether”.
He concluded: “At a time of price volatility at the pumps, EVs offer drivers a more predictable and affordable long-term alternative. There has never been a more critical moment to back this transition and incentivise drivers to switch.”