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Industry stakeholders and representatives have been mixed in their reaction to the Government’s response to the consultation on electric Vehicle Excise Duty.
The consultation response, as published on Monday 13 July, confirmed a number of changes to the scheme based on the design initially communicated in November 2025. An overview of the changes is available on the BVRLA website.
The scope of the consultation was limited to views on how eVED could work at an operational level, it did not explicitly invite input on price, timings or scope in terms of which vehicles would be subject to the duty.
Read an overview from BVRLA Chief Executive, Toby Poston
Below are some of the views shared externally by industry professionals and those representing sectors working within the automotive industry.
“The Government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need.
“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. This now piles pressure on the public charging review that must pave the way for affordable charging, or this transition simply won’t work for drivers.”
“Government has listened where it matters. Dropping mandatory mileage checks for cars under three years removes a significant speed bump that would been a burden on new drivers and big fleets. The other changes it made recognise the practicalities of how fleet operators work.
“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 AFP has long been concerned that the introduction of eVED could hit fleet operators with a substantial administrative burden, as they try to navigate their way around the complexities of managing the scheme and ensuring full compliance.
“Some of the specific concerns raised during the consultation, such as annual mileage checks and reconciliation of mileage both annually and at the end of the lease, have been addressed by the Government’s announcement and we acknowledge these changes as a positive step forward.
“The promise of further engagement with fleet operators prior to the April 2028 start date will hopefully iron out further issues.”
“It currently appears that wholesale revisions to the scheme are unlikely, so our advice to the fleet community is to prepare for the extra workload eVED will generate.
“We will, of course, continue to aim for further changes to the current proposals as well as pushing for a delay in implementation until at least 2030, when the electric car market will have further matured.”
“The industry is working harder than ever to encourage greater EV uptake; eVED risks that additional costs for EV ownership could deter consumers from making the switch.
“We’re concerned at the overcomplexity, the burdening cost to the industry and the reliance on the accuracy of the data.
“Following eVED and the potential complications, it is essential that motorists are provided with clear guidance on how the new arrangements will work, allowing them to make informed decisions when purchasing electric vehicles.”
"Many buyers remain cautious and eVED delivers a massive disincentive in terms of the whole mileage-based principle with the cost and complication that it brings."
“It really could severely damage the EV market just at the point when it should be gaining momentum. “The only real positive here is that the Government has tried to make changes in response to motor industry objections but really, the situation is no better than before.
“The new measures raise more questions than answers in terms of handling of sub-three year old vehicles, the risk of increased mileage fraud, change of ownership, insurance write-offs, repossessions and more. Processing and management of the whole eVED system remains fraught with difficulties.
“We recognise the taxation advantages that have been used to incentive electric car adoption can’t stay in place forever, but the timing and policy here are misguided.”
“The consultation outcome shows the Government has genuinely listened to the automotive profession. Ruling out mandatory telematics, building eVED into the existing VED and DVLA systems, anchoring mileage validation in the MOT, and committing to simple reconciliation and sensible arrangements for fleets and lifecycle events are all things the IMI called for. That is a pragmatic foundation, and we welcome it.
“However, there is one big question the response does not yet answer: can eVED be delivered safely and consistently if the system assumes every MOT garage can deal with EV mileage anomalies? The risks around odometer tampering, mileage data being held in more than one place in a vehicle, and the central role MOT garages will play in recording mileage have been recognised in the consultation response, yet there is no clear plan of how those risks will be managed on the workshop floor.
“Diagnostic capability varies significantly across the MOT network. Reading a dashboard odometer is one thing; investigating a disputed, missing or potentially tampered mileage reading on an electric vehicle is quite another.
“We are, therefore, urging Government to adopt a number of practices we proposed in our submission to the consultation. There need to be clear diagnostic escalation routes, competence-based accreditation and standards aligned with IMI TechSafe. There also needs to be a clear commitment to support for garages on equipment and training.
“Without these, disputes will fall inconsistently on garages, motorists and the DVLA, and public confidence in the new tax will suffer.”
“The introduction of eVED in April 2028 is an important and timely steps towards fairer vehicle taxation and any delay would have only created uncertainty. We’re pleased that the Government has listened about the need to provide more choice in how vehicle mileage can be reported. Drivers opting to use their vehicle’s existing telematics technology will benefit from a quicker, easier-to-use and more accurate system.”
“If the government wants people to switch to EVs, it needs to make electric motoring easy, attractive and affordable.
“Today’s decision to drop mandatory mileage checks for brand-new cars is welcome. But much of the wider package remains untested and risks becoming an albatross around the neck of the next Chancellor and transport secretary.
“It is absurd that families heading off on holiday will be taxed by the UK government for driving on French roads. It is staggering that the DVLA’s legacy computers are unable even to process a simple automatic refund when someone sells or scraps their car – that in itself should be a massive red flag for the incoming government about the deliverability of this policy.
“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. New ministers should pause, take stock and get this right.”
“Today's announcement on #eVED is disappointing. Although some welcome technical changes have been made to payment for fleet, there are still so many unanswered questions.
“Are EU drivers and fleets really going to not pay at all while we are double charged when driving to Europe?
“Why stick with 2028 when OBRs own forecasts say revenue for fuel duty will keep increasing in 2028-2029?
“Why stick with 2028 when you have zev mandate targets to hit?”
“While these mixed signals on EVs from government risk confusing drivers, eVED will not stop EVs remaining significantly cheaper to run than petrol cars, delivering savings of over £1000 a year.
“But a rumoured Government u-turn on EV sales targets would really put British drivers at a disadvantage, incentivising car companies to sell their electric cars elsewhere, leaving the UK more heavily reliant on hybrids which don’t do the mileage they claim, costing drivers more while at the same time continuing to emit air pollution.
“So far government policy to encourage EVs has broadly worked with targets hit and in June around a third of new cars being EVs. But with trouble still ongoing in the Middle East risking higher pump prices, any slowdown will ultimately hurt regular families struggling with a cost-of-living crisis and soaring fuel bills. New EVs today are second-hand EVs in a couple of years where huge savings on driving bills can be made, insulating drivers from price shocks.”
