Go.Compare comments on the chancellor introducing vehicle excise duty to electric cars

Ryan Fulthorpe, Go.Compare’s motoring expert, comments on the Chancellor’s announcement to introduce vehicle excise duty to electric cars:

“Today’s announcement is a real blow for electric vehicle (EV) drivers.

“Traditionally, the environmental benefits of driving an EV, coupled with the savings on running costs are the main reasons people make the switch away from a petrol or diesel car – and now 15% of all cars on the road are chargeable. So to increase the running costs of an EV seems counter-intuitive, and could ultimately slow the growth of this market.

“While the cost to tax an EV may initially be relatively low, the fear is that there are more increases to come. And if you add to this the exponential increase in energy costs, this could really sway motorists away from making the change to an EV. If people are currently weighing up the options for their next car, they may be thinking that while an EV is generally more expensive than its petrol or diesel counterparts, the initial outlay is recouped at some point through reduced running costs – but by increasing taxes and charging costs, it could end up putting people off.

“With sustainability targets to meet and the end of petrol and diesel car sales in 2030 fast approaching, we really need to be incentivising people to buy an EV, not deter them.”