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Mixed messages and tax fears ‘putting brakes” on EV switch, AA warns

Political uncertainty and potential new taxes are causing drivers to retreat to petrol and diesel, creating a “climate of confusion” that independent garages will likely need to navigate.

For independent workshops investing in EV training and equipment, the pace of electrification is a critical business metric.

However, the latest data from the AA UK EV Readiness Index suggests that political flip-flopping and policy ambiguity are causing consumers to hesitate.

While the overall “readiness” score saw a modest rise to 48.8 (up from 47.3), the AA warns that the foundations of this growth are fragile.

Drivers are being “buffeted by mixed messages,” leading many to stick with familiar Internal Combustion Engine (ICE) vehicles rather than making the leap to electric.

According to the report, three main factors are fueling consumer nervousness, all of which are likely to come up in conversation on the garage forecourt:

  • Policy reversals: Rumours of the Zero Emission Vehicle (ZEV) mandate being scrapped, combined with the European Commission watering down 2035 targets, have left drivers unsure if the “electric future” is as immediate as promised.
  • New tax worries: The proposed e-VED scheme, a new tax based on annual mileage planned for April 2028, has spooked buyers. While intended to replace fuel duty revenue, the lack of clarity on costs is acting as a deterrent.
  • Market realities: While EV insurance premiums have finally started to fall (a rare positive), used EV prices have risen relative to petrol and diesel cars, narrowing the financial incentive for second-hand buyers.

The report also noted a small uptick in “out of charge” breakdowns driven by colder weather.

For technicians, this reinforces the need to educate customers. As the trusted face of automotive knowledge, independent garages are best placed to advise EV owners on winter battery management, helping to prevent avoidable breakdowns that damage confidence in the technology.

Edmund King, AA President, warned that the lack of clarity risks undoing years of hard work by the industry.

“Talk of the ZEV mandate being scrapped or delayed, and the introduction of new taxes on EVs, risks undermining years of progress. Those already on the fence may now be stepping back to the familiar territory of petrol or diesel.”

He added that if the UK is serious about adoption, 2026 must bring stronger, clearer guidance.

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