A bold new tax on electric vehicles (EVs) has sparked controversy and left many potential buyers rethinking their plans. The government's proposed per-mile charging system for EVs, set to take effect in 2028, has caused a stir among those considering the switch. AutoTrader's research reveals that nearly half of interested buyers are now hesitant, questioning the government's commitment to promoting EVs.
Nathan Coe, the chief executive of AutoTrader, describes the move as "incoherent and inconsistent" with the government's EV policies. In a report titled "No Driver Left Behind," AutoTrader delves into the barriers preventing widespread EV adoption. The primary obstacle, it seems, is not just the initial purchase price but also the household income of potential buyers.
The report finds that while 62% of motorists are considering an electric car as their next vehicle, this percentage drops significantly for those with lower incomes. Only 48% of households earning less than £40,000 per year are still considering an EV, compared to 73% of higher-income households.
But here's where it gets controversial: the research also highlights a gender gap. Women are less likely to make the switch, expressing concerns about charging EVs and the anxiety of batteries running low while driving. This anxiety is particularly pronounced among those with families.
And this is the part most people miss: the research challenges the notion that rural areas are less EV-ready. In fact, AutoTrader suggests that those living in rural areas, with their off-street parking, might have an easier time charging their EVs at home, even if the public charging network is less developed.
The report also finds that ethnic minority motorists are more likely to go electric, at 80%. However, AutoTrader acknowledges that this data might be influenced by the higher likelihood of such motorists living in urban areas.
So, what's the key takeaway? Cost is the biggest inhibitor, according to AutoTrader. Manufacturers, both European and Chinese, have focused on more profitable SUVs rather than the smaller, more affordable hatchbacks that were once popular in the UK.
Ian Plummer, Autotrader's chief customer officer, sums it up: "We're at a pivotal moment for the UK's EV transition, but there's still a wealth divide lingering. This data busts the myth that those who can charge at home will definitely switch. The driveway divide is not as clear-cut as we thought."
Plummer emphasizes the need for more affordable options, greater transparency on battery health, and practical charging solutions for those without driveways. He believes that addressing these issues will unlock EVs for everyone, not just the privileged few.
Despite these challenges, the Society of Motor Manufacturers and Traders reports that almost one in three new cars sold in Britain last month was an all-electric model. However, December 2025 was the only month that EV sales met the government's target of 28% of new cars being electric.
Overall, all-electric cars accounted for 23.4% of the market last year. Manufacturers face penalties for falling short of this target or must purchase "credits" from those electric carmakers who exceed it.
The question remains: Can the government and manufacturers work together to make EVs more accessible and affordable for all, or will this new tax policy stall the EV revolution?
