A new mileage tax on electric vehicles could deter almost half of potential buyers from switching to an electric car, according to new research from AutoTrader, raising concerns that government policy on electric car adoption is becoming increasingly inconsistent.
From 2028, electric vehicle drivers will face a new charge of 3p per mile driven, a move announced by Chancellor Rachel Reeves. AutoTrader chief executive Nathan Coe said the decision risked undermining years of efforts to encourage motorists to switch away from petrol and diesel.
Coe described the policy as “incoherent and inconsistent” with the government’s stated aim of accelerating the transition to electric vehicles, warning it could slow momentum at a critical stage.
AutoTrader’s latest report, No Driver Left Behind, found that while 62 percent of drivers are currently considering an electric car as their next vehicle, that number drops sharply when costs and revenue are taken into account. Of households earning less than £40,000 a year, only 48 per cent are considering an electric vehicle, compared to 73 per cent of those on higher incomes.
Despite falling battery costs, electric vehicles remain on average around 17 percent more expensive than their gasoline counterparts. The research shows that the purchase price, not just the access fee alone, remains the biggest barrier to adoption.
Age and location also play an important role. While 72 percent of drivers ages 17 to 34 say they are open to switching to electric cars, only 35 percent of those over 55 say they are open to switching. City dwellers appear to be more open-minded than those in rural areas: 72 percent of urban drivers are considering an electric vehicle, compared to much lower numbers in more remote areas.
This finding challenges the assumption that off-street parking – which is more common in rural areas – automatically makes transitioning easier. According to AutoTrader, concerns about range, charging reliability and operating costs continue to influence decisions regardless of home charging access.
Gender differences were also evident, with women about ten percentage points less likely to consider an electric car than men. Concerns about charging availability and battery range, particularly for family use, were cited as key factors.
The report also found that ethnic minority drivers are more likely to consider electric vehicles, although AutoTrader noted that this may be partly due to the higher proportion of these drivers living in cities where charging infrastructure is better developed.
Ian Plummer, AutoTrader’s chief customer officer, said costs remained the key issue. “We are at a pivotal moment for the UK’s transition to electric vehicles, but there is still a persistent wealth gap,” he said. “If lower-income households don’t have access to affordable electric cars, we risk creating a two-tier system in which cleaner, cheaper driving is reserved only for those who can already afford it.”
Plummer added that the solution lies in expanding the offering of lower-priced electric models, improving transparency about battery health and addressing charging challenges for driveway-less drivers.
The results come despite strong overall growth in electric vehicle sales. According to the Society of Motor Manufacturers and Traders, almost one in three new cars sold in the UK last month were fully electric. However, 2025 was the first year in which total electric vehicle sales did not consistently meet the government’s annual targets, with purely electric vehicles accounting for 23.4 percent of new registrations.
Manufacturers that fail to meet mandated sales thresholds for electric vehicles face financial penalties or must purchase credit from competitors who exceed those thresholds, adding further pressure to a market already grappling with political uncertainty.
