The UK's accelerating transition to electric vehicles faces a significant new hurdle, as industry leaders warn that proposed pay-per-mile taxes could "torpedo" consumer confidence and sales. This warning comes despite fresh data revealing a robust performance for battery electric vehicles (BEVs) in the new car market.
Strong Electric Vehicle Growth Meets Policy Headwinds
New figures for November 2025 show that battery electric vehicles captured 26.4 per cent of the new car market, marking the second strongest month on record for the technology. In total, 38,742 new electric cars were registered, while zero-emission vans saw an even more dramatic surge of 24.5 per cent, putting nearly 3,000 new electric vans on UK roads.
According to analysis from New AutoMotive's Electric Car Count, these sales figures place the UK in a strong position to meet the annual targets of the Zero Emission Vehicle (ZEV) mandate. Ben Nelmes, CEO of New AutoMotive, described the data as "great news for everyone who will benefit from cleaner air," noting that manufacturer credits effectively doubled in November alone.
"Manufacturers are comfortably on course to comply with the targets in 2025," Nelmes stated. "As petrol and diesel sales slide, the electric market has matured to nearly 23 per cent of all 2025 sales. The transition is not just happening - it's accelerating."
Industry Sounds Alarm Over New Tax Regime
However, this positive momentum is now under threat following Chancellor Rachel Reeves's confirmation of a new pay-per-mile tax regime for electric cars. Senior figures across the automotive and charging sectors have united in criticism, labelling the timing and nature of the policy deeply damaging.
Toby Poston, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), was unequivocal: "Last week's confirmation of a pay-per-mile regime for electric cars is the wrong policy at the wrong time. It risks completely undermining the confidence that has been built, particularly for operators making long-term investment decisions."
Melanie Lane, Chief Executive of major UK charging provider Pod Point, linked a growth slowdown in November directly to the tax announcement. "Now is the wrong time to introduce taxes on EV drivers," she argued, warning that further cost pressures could prevent the sector from achieving the 28% market share target set by the ZEV mandate.
Calls for Government to Sustain Confidence and Demand
Despite the tax concerns, industry experts emphasise that the fundamental advantages of electric vehicles remain. Melanie Lane pointed out that the total cost of owning an EV is lower than an internal combustion engine (ICE) vehicle, and driver intention to switch is strong.
The consensus is that the government must now focus on bolstering market confidence. Lane urged ministers to give consumers and the market more certainty to sustain demand, yield returns on the government's own Electric Car Grant investment, and secure long-term economic growth for the UK.
Tanya Sinclair, CEO of Electric Vehicles UK, echoed this cautious outlook, saying, "It's great to see more drivers choosing electric every month, and we will be watching how the Chancellor's measures will affect these trends." The coming months will prove critical in determining whether the UK's electric vehicle revolution continues its rapid acceleration or is stalled by new fiscal policies.
