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Electric car discounts are unsustainable, warns industry group

Some commentators are more positive about the ZEV Mandate, however.

Colin Walker of the Energy and Climate intelligence Unit, an environmental research group, welcomed the latest registration figures.

“2025 has been another bumper year for EV sales, with nearly one in four cars sold in 2025 being an EV,” he said.

“This policy in turn will boost the UK’s second-hand market where the majority of us buy our cars, easing cost of living concerns for drivers.”

But Ginny Buckley, chief executive of the EV consumer advice site Electrifying.com, warned that many drivers still did not feel confident about the prospect of driving an EV.

“Moving EV sales from one in four new cars to one in three by the end of the year won’t happen on momentum alone. Alongside the growing choice of EVs, buyers need confidence, clear messaging and policy stability.”

The government has brought forward a number of measures to support the take-up of electric vehicles over the past year.

They include the £2bn Electric Car Grant Scheme, which provides up to £3,750 towards the cost of buying an electric vehicle, as well as significant funding for charging infrastructure.

However, in the autumn Budget, it also announced plans to introduce a “per mile” tax on electric vehicles – a measure designed to offset some of the reduction in fuel duty revenues caused by the transition to electric vehicles.

According to the independent Office for Budget Responsibility, the incentives could generate about 320,000 extra EV sales over a five-year period. But it says the new tax is likely to counteract that by cutting sales by about 440,000 – leading to an overall reduction of 120,000.

“This is one of the challenges we see,” said Hawes.

“To have a technological shift like this, you need consistent, coherent and compelling messaging and support.

“Even the announcement of a tax specifically on EVs will send a very conflicting message to consumers.”

Transport minister Keir Mather insisted government investment was “driving EV uptake, with sales up nearly 24% on the year, meaning one in four new cars sold are electric and there are nearly half a million new EVs on Britain’s roads since 2024”.

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