The looming EV pay-per-mile tax could derail the EV transition, pushing drivers back to petrol, new research finds. The fourth edition of Zenith’s EVXperience Report (EVX4) shows that
The looming EV pay-per-mile tax could derail the EV transition, pushing drivers back to petrol, new research finds.
The fourth edition of Zenith’s EVXperience Report (EVX4) shows that the vast majority of existing EV drivers are satisfied with their vehicles, as the cost and certainty of electric vehicles boosts their popularity amid fuel price volatility.
But nearly three-quarters (74%) are concerned about the potential cost impact of the planned pay-per-mile tax, with four in ten (40%) saying they would consider switching back to a petrol or diesel vehicle if running costs of an EV became more expensive.
The new report, which draws on feedback from more than 3,000 EV drivers, shows that satisfaction with electric vehicles remains high, with nearly three-quarters of EV drivers (74%) believing electric vehicles are cheaper to run than petrol or diesel equivalents, as ongoing economic pressures and fluctuating fuel costs continue to impact ICE drivers.
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.
But drivers are losing confidence in policy support.
While government-backed incentives, such as low Benefit-in-Kind rates for EVs, have proven incredibly effective in encouraging uptake, Labour’s reinstatement of the 2030 ICE ban with a hybrid extension, and the recent announcement of the new pay-per-mile tax for EV drivers, have impacted confidence in the delivery of a successful transition.
And 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.
Andy Wolff, managing director of Zenith’s Corporate division, said the 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.”
Wolff added 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.
“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.”
