The landscape of electric vehicle (EV) adoption in the UK is facing a potential shift as nearly half of prospective car buyers are reconsidering their electric ambitions. This comes in response to a new government policy introducing a per-mile charge for EVs, according to research by AutoTrader.
Rachel Reeves’ announcement of a 3p per mile tax on electric vehicles starting in 2028 has been criticized by Nathan Coe, CEO of AutoTrader, as being “incoherent and inconsistent” with the government’s promotion of EVs.
AutoTrader’s report, titled No Driver Left Behind, highlights that the primary obstacles to EV ownership are low household income and the initial purchase price. The report indicates that 62% of drivers are contemplating an EV for their next car.
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This enthusiasm drops to 48% among households earning less than £40,000 annually, compared to 73% for those making over £40,000. The cost disparity between electric and petrol vehicles, though narrowing, remains a significant deterrent.
The study shows a generational divide, with 72% of individuals aged 17 to 34 interested in EVs, while only 35% of those over 55 share this interest.
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Gender disparities are also evident, with women less inclined to switch to EVs due to concerns about charging and battery range anxiety. Urban dwellers show higher readiness for EV adoption at 72%, compared to those in rural areas, despite the latter having more access to home charging.
AutoTrader acknowledges the higher likelihood of ethnic minority motorists opting for EVs, although this may be influenced by their urban residence.
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The report concludes that cost is the primary barrier, with manufacturers focusing on more lucrative SUVs rather than affordable hatchbacks, which were previously popular in the UK.
“We’re at a pivotal moment for the UK’s electric vehicle transition but there is still a lingering wealth divide,” says Ian Plummer, Autotrader’s chief customer officer. “This new data also busts the myth that those who can charge at home will definitely switch. The driveway divide is no longer so clear cut.”
“If lower income households can’t access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off.”
“The path forward is clear: more choice at lower price points, greater transparency on battery health metrics and practical charging solutions for people without driveways. Do that, and we unlock electric vehicles for everyone — not just the few.”
Almost one in every three new cars — 32.3% — sold in Britain last month was an all-electric model, per the Society of Motor Manufacturers and Traders. December was the only month in 2025 when EV sales met the government’s target of 28% of new cars being electric.
Overall, electric vehicles made up 23.4% of the market last year. Manufacturers face penalties for not meeting targets and may have to purchase “credits” from companies that exceed the benchmarks.
Original Story at www.thetimes.com