EV industry leaders react to Government's eVED consultation response

Industry figures have responded to HM Treasury's publication this week of the government's response to its consultation on the introduction of Electric Vehicle Excise Duty (eVED), the new mileage-based charge on electric and plug-in hybrid cars due to take effect from April 2028. The government confirmed it will not proceed with mandatory mileage checks for cars under three years old and has simplified arrangements for fleets and leasing companies, including bulk licensing and estimated mileage readings.

Nick Connor, CEO of the IMI, said:

“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.”

Tanya Sinclair, CEO, Electric Vehicles UK, said:

“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.”

Ben Nelmes, CEO of New AutoMotive, said:

“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.”

Toby Poston, CEO, BVRLA, said:

“It is great that the government has taken some of the roughest edges off its eVED plans. They’ve accepted that a tax designed around private motorists won’t work for the fleets that are driving the UK’s transition to electric vehicles.

“But there is no avoiding the fact that you can’t create a smooth switch to electric vehicles by making them more expensive to own. The mechanics of the tax may have improved, but the timing is still wrong.”

Simon Smith, CEO, Voltempo:

“Scrapping the under-three-year mileage checks is the right call. That proposal meant leased and rental vehicles off the road for checks that added cost, not value. Government listened, and the fleet package - bulk licensing, bulk payment, estimated mileage - is built around how the industry runs, not how Whitehall assumed it runs.

“The next test will be delivery. Guidance, systems and the MOT network all need to be ready well before April 2028.”

Vicky Edmonds, CEO, EVA England, said: 

“This policy still does not work for drivers. 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 really needs to work for drivers and pave the way for affordable charging.”