Demand for electrical automobiles is falling as drivers face a pay-per-mile tax – do you agree?

Demand for electric cars has collapsed as Rachel Reeves prepares to hit them with a new pay-per-mile tax. The Telegraph has more.

Electric vehicle (EV) sales grew at just 3.6% in November, their slowest pace in two years, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

SMMT chief executive Mike Hawes attributed the slowdown to the budget and its long preparation.

He said: “Even in a fragile market, the uptake of zero-emission vehicles continues to increase, which is exactly what we need. But the weakest growth in almost two years – before the government announces a new tax on electric vehicles – should be seen as a wake-up call that a sustained increase in demand for electric vehicles cannot be taken for granted.”

“We should take every opportunity to encourage drivers to switch, not penalize them for doing so, otherwise the government and industry’s ambitions will be dashed.”

The Chancellor announced a new per-mile car tax for electric vehicles in the Budget last week. When it comes into force in April 2028, the levy will charge electric car drivers 3p per mile – costing them an average of around £250 a year.

The news of the policy was first reported by the Telegraph on November 6th.

The change is intended to make up for lost fuel taxes and begin bringing electric vehicles into line with gasoline and diesel vehicles. A typical petrol car driver currently pays around £600 a year in fuel taxes, which are effectively a tax on the distance traveled.

But the auto industry has warned that the new tax could hurt demand for electric vehicles, which are more expensive to purchase than gasoline alternatives.

The number of electric vehicles sold rose to 39,965 in November. All-electric cars accounted for 26.4% of all new car sales in November, up from 25.1% a year earlier. The SMMT said recently introduced electric car subsidies supported sales.

However, the share of electric vehicle sales is still below the annual target of 28%. Car manufacturers who do not reach this level face fines.