From THE DAILY SCEPTIC

by Will Jones

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

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

Mike Hawes, the Chief Executive of the SMMT, tied the slowdown to the Budget and its long build-up.

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

“We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of Government and industry will be thwarted.”

The Chancellor announced a new pay-per-mile road tax for EVs in last week’s Budget. The levy will charge drivers of electric cars 3p per mile when it comes into force in April 2028 – costing them around £250 a year on average.

News of the policy was first revealed by the Telegraph on November 6th.

The change is meant to make up for lost fuel duty and to start bringing EVs into line with petrol and diesel vehicles. A typical petrol car driver currently pays around £600 per year in fuel duty, which is effectively a tax on distance travelled.

However, the car industry has warned that the new tax risks damaging demand for EVs, which are more expensive to buy than petrol alternatives.

The number of EVs sold climbed to 39,965 in November. Fully electric cars made up 26.4% of all new car sales in November, up from 25.1% a year ago. The SMMT said the recently introduced electric car grants supported sales.

However, the proportion of EV sales still falls short of the 28% annual target. Carmakers who fail to meet this level risk fines.

Worth reading in full.

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