Policy shifts threaten EV uptake as EU-UK moves reshape targets
AA UK EV Readiness Index shows fragile consumer confidence amid policy reversals, while EU and UK debates over 2035 targets compound uncertainty for drivers and automakers.
Drivers are increasingly reluctant to switch to electric vehicles as policymakers pull in different directions, according to the AA UK EV Readiness Index released Dec. 19, 2025. The study comes as European and British officials debate deadlines and incentives for electrification, raising questions about how quickly motorists will embrace cleaner cars in the years ahead.
The index sits at 48.8 out of 100, a modest 1.5-point rise from the prior quarter but still well short of a level that would indicate broad consumer readiness. The report emphasizes that the foundations for mass EV adoption remain fragile amid a swirl of policy signals that can confuse potential buyers and shake manufacturers’ planning. Among the uncertainties cited are the proposed e-VED pay-per-mile scheme, slated to begin charging electric-car owners in April 2028, and rising prices for used electric vehicles, which can deter early-supply buyers and worsen secondhand markets.
Edmund King, president of the AA, framed the findings as a warning: "Whilst the Index shows some progress, the conditions that support drivers’ shift to EVs remain challenging for many. Drivers are being buffeted by mixed messages and policy reversals. Talk of the ZEV mandate being scrapped or delayed, and the introduction of new taxes on EVs, risks undermining years of progress. Those already on the fence may now be stepping back to the familiar territory of petrol or diesel, rather than embracing the switch to electric." King also noted a mixed signal on insurance costs, citing a drop in EV insurance pricing at a faster rate than for internal-combustion engine policies, even as broader concerns about used-car pricing linger.
On the political front, the study sits against a backdrop of shifting stances on the ZEV mandate in the United Kingdom. Last year, Conservative leader Kemi Badenoch signaled that a future Conservative government would abolish the ZEV mandate, arguing in the Sunday Telegraph that the policy was "well-meaning but ultimately destructive." The party’s position adds to a chorus of calls from several EU states to rethink hard deadlines for phasing out petrol and diesel cars, arguing that rigid bans could hamper industrial policy and erode competitiveness against rivals such as China.
The European Union’s policy posture also moved in a markedly different direction on Dec. 16. In a major climbdown, Brussels backed away from forcing all new cars to be zero-emissions by 2035, opting instead for emissions-based targets that allow some combustion-engine models to remain on sale beyond the deadline. Under the new rules, carmakers will be required to cut average CO2 emissions by 90 percent relative to 2021 levels, rather than achieving 100 percent zero-emissions sales. The shift was paired with renewed pressure on the United Kingdom to reconsider its own ban on new petrol and diesel cars, a target Labour had accelerated to 2030 earlier in the year.
Germany, Italy and five other EU members had urged a reconsideration of the 2035 ban, arguing that a rigid prohibition could hinder industrial policy and leave Europe trailing in the race for clean-vehicle leadership. The EU’s 16 December decision thus recalibrated expectations for automakers, lawmakers and consumers while intensifying debates about how quickly electrification should proceed across the continent.
King reiterated that policy clarity and credible incentives would be essential to unlock momentum: "If the UK is serious about accelerating EV adoption, 2026 must bring stronger, clearer guidance and meaningful incentives. Only then will we see real momentum and confidence among drivers to make the change." The AA also noted that insurance dynamics and the price trajectory of used EVs will continue to influence buyer behavior, highlighting the need for coherent, consumer-friendly policy to sustain progress on decarbonization.
As governments weigh different approaches to emissions targets and vehicle taxation, observers say the climate implications hinge on steady, predictable policy that aligns with consumer incentives. The AA’s Readiness Index underscores that, while technical progress in EVs continues, rapid shifts in regulatory expectations can undercut the public’s willingness to switch from conventional cars. For climate and environmental objectives, the coming year may prove pivotal in determining whether policy signals sharpen or muddle the path toward a broader transition to electric mobility.
