Electric vehicle industry leaders have responded to the UK Government’s latest position on Electric Vehicle Excise Duty, warning that the proposed mileage-based charge still risks undermining confidence in the switch to electric vehicles.
HM Treasury’s response to its consultation on eVED confirmed that the Government will not proceed with mandatory mileage checks for cars under three years old. It has also simplified arrangements for fleets and leasing companies, including bulk licensing, bulk payment and estimated mileage readings.
The new mileage-based charge on electric and plug-in hybrid cars is due to take effect from April 2028.
Industry welcomes changes to mileage checks
Several EV and fleet organisations welcomed the decision to remove mandatory mileage checks for newer vehicles, particularly for fleets, leased vehicles and rental operators.
“Government has listened where it matters. Dropping mandatory mileage checks for cars under three years removes a significant speed bump that would have been a burden on new drivers and big fleets,” said Tanya Sinclair, CEO of Electric Vehicles UK.
“Where government still needs to do better is in how it communicates its policies to drivers. We still have a mix of incentives, taxes, grants and policies which don’t clearly echo its vision of an all-electric future.”
The British Vehicle Rental and Leasing Association also welcomed changes to the mechanics of the scheme, while warning that the timing remains problematic.
“It is great that the government has taken some of the roughest edges off its eVED plans,” said Toby Poston, CEO of the BVRLA.
“But there is no avoiding the fact that you can’t create a smooth switch to electric vehicles by making them more expensive to own. The mechanics of the tax may have improved, but the timing is still wrong.”
Concerns remain over complexity and implementation
New AutoMotive said the decision to remove mileage checks for brand-new cars was welcome, but argued that the wider package remains untested.
“If the government wants people to switch to EVs, it needs to make electric motoring easy, attractive and affordable,” said Ben Nelmes, CEO of New AutoMotive.
“With uncertainty over EV targets and a risky new tax on electric motoring, drivers, businesses and investors will question the UK’s commitment to the transition.”
Voltempo, which develops electric vehicle charging infrastructure for fleets, said the changes show Government has recognised how fleet operators work in practice.
“Scrapping the under-three-year mileage checks is the right call,” said Simon Smith, CEO of Voltempo.
“The next test will be delivery. Guidance, systems and the MOT network all need to be ready well before April 2028.”
EV driver group says policy still needs work
EVA England said the latest changes do not resolve its wider concerns about the impact of eVED on drivers.
“This policy still does not work for drivers,” said Vicky Edmonds, CEO of EVA England.
“At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved.”
The response comes as the UK continues to balance electric vehicle uptake, public charging affordability, fleet electrification and future motoring tax revenues.
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FAQs
What is eVED?
Electric Vehicle Excise Duty, or eVED, is the Government’s planned mileage-based charge on electric and plug-in hybrid cars, due to take effect from April 2028.
What change has the Government made?
The Government has confirmed it will not proceed with mandatory mileage checks for cars under three years old and has simplified arrangements for fleets and leasing companies.
Why are EV industry groups concerned?
Industry leaders argue that adding a new tax to electric motoring could weaken consumer confidence, increase complexity and make the switch to EVs feel less attractive.
Who responded to the announcement?
Responses came from Electric Vehicles UK, New AutoMotive, BVRLA, Voltempo and EVA England.
