The UK’s role as Europe's biggest market for plug-in electric cars could be under threat when new VED brackets are introduced in April.
Britons bought 36,917 alternatively fuelled models last year, with the segment now representing 4.2% of the country’s overall registrations. But rising tax costs that’ll affect the majority of alternatively fuelled vehicles could deter potential buyers from opting for zero-emission models.
The government’s new car tax brackets will move 66% of the available alternatively fuelled vehicles from road tax exemption to being subject to a £130 flat rate annual fee. A YouGov survey commissioned by the Society of Motor Manufacturers and Traders found that low running costs were the biggest draw for 51% of motorists, revealing how much of a hit the impending tax hike could have on demand for hybrids and EVs.
According to the survey, just 13% of British motorists are considering an alternatively fuelled car for their next vehicle.