The introduction of a pay-per-mile tax for electric vehicles from 2028 signals a fundamental shift in how electric fleets are costed and managed. Amanda Webb, CEO at FixMyCar, looks at the implications.

Electric vehicles have officially gone mainstream. The days of electric vehicle tax exemption are over: from April 2028, electric car drivers will pay a road charge of 3p per mile and plug-in hybrid drivers will pay 1.5p per mile, rising each year with inflation, under current government plans.

It’s a major shake-up for both drivers and businesses alike. Motorists are faced with a whole new value proposition when it comes to EVs, and will be paying close attention to reliability, repairs and the ongoing cost of ownership. In step, business players must also adapt, reshaping their services to suit new driver priorities and challenges. With just two years to adjust to a whole new way of EV thinking, 2026 is the year to adapt.

EV considerations have changed

The new pay-per-mile plans for EVs, and the additional costs this entails, reshape the EV value proposition. EV ownership has been climbing in recent years – around one in four new cars sold in 2025 were electric – and it’s estimated there are now more than 1.8 million electric vehicles on UK roads. The end of the EV tax exemption will hit the wallets not only of these current drivers but influence the decisions of future would-be EV motorists.

Key industry players have already recognised the importance of this change and how it affects their relationship with customers. In December, Octopus EV announced it would cover the new pay-per-mile tax for all existing customers, until the end of their lease, so there’d be no extra surprise charges for those already driving EVs.

But the impact goes far beyond EV leasing companies. For businesses in the automotive industry, and especially in the aftermarket sector, the end of pay-per-mile exemptions represents a substantial challenge. With increased operating costs for driving an EV, electric drivers will be forced to take a much more careful, considered approach to servicing and maintaining their vehicles.

The industry’s EV service problem

The increased attention on EV maintenance is an issue for the motor industry. The sector is already struggling with a significant service gap and the availability of qualified EV technicians being very thin on the ground. Latest figures from the Institute of the Motor Industry (IMI) predict a shortfall of 44,000 EV technicians by 2035, while outlining a geographically uneven distribution of skills that means drivers could face a ‘postcode lottery’ for EV servicing and repairs.

With the pay-per-mile change making EV maintenance urgent, motorists will be desperate for dependable, transparent repair options near them and the industry must find a way to meet this need. At the most basic level, this means making EV training a priority right across the country.

Location and transparency win out over cost

However, as in any industry, an emerging need leads to new opportunities. As more EV drivers seek reliable garages, businesses and mechanics who offer an excellent service stand to win big. Despite increasing financial pressures, surprisingly it’s not the cost that’s the deciding factor for motorists: less than a third (29%) of drivers consider low prices important in their choice of garage, whereas the majority (57%) consider a convenient and local garage location. Furthermore, just under one in two (47%) say clear, transparent work and pricing is important in their decision, and 31% cite good reviews. All these factors have more sway with motorists than price.

Garages, then, who wish to gain from the influx of EV repairs must take these insights to heart. Now is the time they should be investing in their EV services, taking the time to build and establish credibility in the lead up to April 2028. Motorists searching mechanic reviews in a few years’ time will see garages with EV reviews from years back and those with barely a few recent mentions – and it’s not hard to guess which ones they’ll pick.

Transparency in services should also not be underestimated. There’s still a lack of knowledge among drivers around repairs, tests, and servicing and the relatively new technology of electric vehicles intensifies this even more. Taking the time to demystify EV rules and maintenance, with clear, transparent, well-explained pricing, will go a long way in establishing crucial driver trust and winning their custom.

With the tax exemption lifting, the EV game has changed. Maintenance will become an increasingly pressing issue and drivers – and businesses – will struggle if these needs can’t be met. But the change also creates new opportunities. Proactive players in the garage sector will get ahead of the evolved EV proposition by prioritising training, increasing EV credibility and pursuing transparency in their work overall.