Policy shifts undermine confidence in electric vehicles, AA says as readiness index shows fragile adoption

London — The AA UK EV Readiness Index, updated 07:05 GMT, 19 December 2025, shows that consumer appetite for electric vehicles remains fragile as policymakers shift goals and signals. The latest Readiness score rose only modestly to 48.8 out of 100, up 1.5 points from the previous quarter, underscoring continued hesitancy among drivers to switch from petrol or diesel to EVs.

Policy uncertainty is cited as a central factor. The European Commission's move to water down the 2035 zero-emissions target and calls from politicians to scrap the UK's Zero Emission Vehicle mandate have created a climate of confusion for consumers and manufacturers, the AA said. The report notes several other uncertainties, including the proposed e-VED scheme that would impose a pay-per-mile tax on electric-car owners from April 2028, and rising prices for used EVs.

Edmund King, AA president, said: "While 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 petrol or diesel, rather than embracing the switch to electric." He also noted that a drop in EV insurance pricing, while welcome, does not fully offset concerns about used-car pricing where most private sales occur.

Last week the Conservative Party said it would scrap the ban on petrol and diesel vehicles put in place by Labour if it wins the next election. Leader Kemi Badenoch committed the next Conservative Government to completely abolish the ZEV mandate, ending the legal requirements on manufacturers to sell a fixed and rising percentage of electric vehicles each year. Badenoch wrote in the Sunday Telegraph that the Zero Emission Vehicle mandate was a "well-meaning but ultimately destructive piece of legislation."

The policy shifts come as EU governments press for a recalibration of their own 2035 plan. Germany and Italy, among several EU states, urged others to reconsider an outright phase-out of new petrol and diesel cars, warning a rigid ban could hinder industry and erode competitiveness against countries such as China. In response, on 16 December the European Commission backed away from ending petrol and diesel car sales by 2035, opting instead for CO2-emissions-based targets rather than an electric-only mandate. Manufacturers will instead be required to cut car exhaust emissions by 90% — not 100% — relative to 2021 levels in a shift intended to ease pressure on an industry facing weak EV demand and rising competition.

This move added pressure on the UK government to revisit its own deadline for banning new petrol and diesel cars, which Labour had moved forward to 2030 earlier this year. King urged clarity: "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 Readiness Index shows that while there has been some progress, the foundations of EV adoption remain fragile. In addition to policy uncertainties, the report highlights that used-car pricing and other market dynamics could influence consumer decisions in the near term. The AA notes that while insurance costs for EVs have declined, the broader market remains sensitive to shifts in subsidies, incentives, and regulation.