The AA has warned that mixed government messages around electric vehicles could slow the UK’s transition to EVs, despite improving readiness conditions across the country.
The latest AA UK EV Readiness Index found factors supporting the EV transition are moving forward. But confusing and contradictory government policies risk undermining that progress.
The government encourages motorists to go electric through the Electric Car Grant and a recent information campaign. At the same time, it’s putting drivers off with the planned pay-per-mile tax on electric vehicles.
Readiness Rating Climbs Despite Market Challenges
The AA’s quarterly index tracks eight indicators that influence drivers’ readiness to switch to EVs. These combine into a single “readiness rating.”
The rating rose from 48.8 in Q4 2025 to 53.8 in Q1 2026.
The AA said this jump came largely from falling used EV prices and growing charging infrastructure – not from strong consumer demand.
Used EVs dropped below the cost of equivalent petrol cars during the quarter. They were 10% cheaper than internal combustion engine vehicles.
The availability of lower-priced vehicles created new opportunities for motorists. Ex-fleet supply entering the market drove much of this change.
But rapid depreciation poses a challenge to fleets and manufacturers. These groups rely on strong residual values to support new vehicle sales and leasing.
Government Policy Creates Confusion
Edmund King OBE, AA president, said the index shows conditions for switching to electric cars are improving.
“Our index shows that conditions for switching to electric cars are improving, with cheaper used EVs opening the door for more drivers. But the reality is that the transition remains fragile.”
King noted that lower prices benefit bargain-hunting motorists. But values falling too quickly becomes unsustainable for fleets and manufacturers who buy most new electric cars.
Consumer confidence is taking a hit from contradictory government policies. The index found 55% of drivers said the prospect of pay-per-mile eVED may put them off buying an EV.
“Mixed messages from government – including uncertainty around future taxes such as eVED – risk denting confidence just as the market is beginning to mature from the early adopters.”
King called for clearer long-term policy signals and better driver information.
Industry Calls for Decisive Action
Matt Galvin, managing director at Polestar UK, echoed King’s concerns. He called for the government to take decisive action supporting the transition.
“This research confirms that the transition to fossil fuel-free travel is too slow under the current policy framework.”
Galvin noted the latest energy crisis sparked a surge in EV demand. Manufacturer data shows record interest in going electric across the UK.
He outlined specific government actions needed:
- Introduce a second-hand EV grant for easier access to emissions-free driving
- Reverse the congestion charge for EVs
- Postpone the widely unpopular eVED
- Build the world’s fastest EV charging network through proper funding and policy support
The transition remains at a critical juncture where policy clarity could make the difference between momentum and stagnation.
