The introduction of Electric Vehicle Excise Duty (eVED) risks putting almost two-thirds of drivers off electric cars, according to new research from Venson Automotive Solutions.

The study reveals that 62% of motorists say the new tax will discourage them from switching to electric, with 24% confirming it will significantly impact their future purchase decisions.

The findings chime with broader industry concerns regarding EV adoption incentives.

The Office for Budget Responsibility (OBR) has previously warned that the introduction of the new tax, alongside other budget measures, could reduce EV sales by 120,000 vehicles between 2025/26 and 2030/31.

The system is forecast to raise £1.9bn for the Exchequer in 2030/31. While almost a quarter of the motorists Venson surveyed support the introduction of eVED, 46% consider it unfair.

The research follows last week’s confirmation from the Government that the pay-per-mile electric vehicle tax will go ahead from April 2028, but with key policy revisions for fleets and drivers, as revealed in its official consultation response. These changes include abandoning planned annual mileage checks for newer, pre-MOT vehicles, while fleet operators will be permitted to provide estimated mileage readings.

At the same time, companies will be able to make bulk payments and settle outstanding liabilities with top-up payments before defleeting, easing concerns over remarketing.

Although the Government has streamlined the rules for fleets, it does acknowledge that the administrative impact could be material for some businesses, particularly large fleets. Unsurprisingly, 26% of drivers believe the practical implications of eVED will make claiming business travel expenses significantly more difficult.

Simon Staton, client management director at Venson Automotive Solutions, said: “The negative reaction to eVED is hardly surprising. The fact that almost two-thirds of drivers say they are put off switching to an electric car because of the tax should ring alarm bells for policymakers.

“Fleet has spearheaded the road to electric, helped by attractive Benefit-in-Kind (BiK) rates. Yet, just as fleets are driving EV adoption, the sector is now rewarded with only a two-year window to incorporate an incredibly complex vehicle mileage reporting system into their day-to-day operations to comply with eVED.

“At such a crucial point where the Government is trying to encourage more people to switch to electric, the introduction of eVED risks upsetting the apple cart, not just with retail buyers, but with crucial fleet stalwarts who have long been the frontrunners in the drive to electric.”