Consumer confidence hit by electric Vehicle Excise Duty
Further research has highlighted the negative impact electric Vehicle Excise Duty (eVED) is having on the switch to electric vehicles.
eVED will impose additional taxes on drivers of electric and hybrid vehicles from next April, with costs based on annual mileage.
The latest consumer electric vehicle barometer from Europcar Mobility Group UK found that consumer cost concerns rose 8.5% from 54% to 62% between the fourth quarter of 2025 and the second quarter of 2026.
However, charging concerns fell from 43% in the first quarter of the year to 40% in the second quarter.
Tom Middleditch, sustainability spokesperson at Europcar, said: “The cost of electric models has been falling more in line with ICE counterparts in recent years, which should lead to a reduction in the proportion of people seeing cost as a barrier to going electric.
“However, the confirmation in June that electric vehicles will incur eVED from 2028 seems to have neutralised the positive impact of price parity.
“Although the introduction of eVED was originally announced in November last year, car buyers weren’t necessarily fully aware of it until it was confirmed in June. And it seems from our latest data that it is having an impact on consumer plans.”
