Skip to content
Policy & Market
United Kingdom

BEVs took 30% of UK car market in August, yet government weighs softening 2030 targets

By Eve

Battery electric vehicles captured 30% of UK new car sales in August, up from 23% a year earlier, making BEVs the single most popular powertrain ahead of hybrids at 29% and petrol at 22%. Sales are running ahead of the pace needed to meet the current 80% EV target by 2030, with 2025 year to date figures already meeting 2026 targets, yet the UK government is considering softening those mandates despite the strong performance.

Why it matters

The disconnect between robust EV uptake and potential policy retreat creates uncertainty for charging infrastructure investors and operators planning network expansion to support the 2030 trajectory. Any weakening of sales targets could slow the business case for large scale charging deployments, even as current demand signals justify continued rollout.

Source

Original title
“BEVs outsold every powertrain in August, so why is UK trying to roll back targets?”
Published
3 September 2026
Updated
4 September 2026

In this story

Related news

BIK taxation rates extended to 2030–31 with minimal rise, boosting salary sacrifice schemes

The UK Treasury has extended benefit in kind taxation rates for electric cars through to the 2030 to 2031 tax year, with zero emissions vehicles rising by just one percentage point to 10%. Arval UK's head of sales for large corporate and international, John Peters, said the five year certainty and minimal increase will support ongoing fleet electrification, noting that low employee taxation has driven the widespread switch to electric cars in recent years.

Why it matters

Extended BIK certainty to 2030–31 gives fleet operators and salary sacrifice providers a stable planning horizon for electric vehicle programmes, while the modest rate increase preserves the tax advantage that has underpinned corporate EV adoption and associated charging infrastructure demand.

United Kingdom
30 Oct 2026

Arval (uk) · Source

UK Corporation Tax relief on electric company cars to drop from 100% to 12% in April 2027

The 100% first year capital allowance for new, fully electric company cars ends on 31 March 2027, after which the relief falls to 12%. A £50,000 electric vehicle currently yields a £12,500 Corporation Tax saving at the 25% rate, but this will drop to £1,500 after the deadline. The allowance applies only to new, unused zero emission cars and also covers electric vehicle charge point spending, prompting businesses to review purchasing plans before the cut off.

Why it matters

Fleet operators and charge point operators may accelerate procurement of electric vehicles and charging infrastructure to capture the full tax relief before April 2027. The sharp reduction in allowances could slow corporate EV adoption and charge point investment after the deadline, affecting demand forecasts for CPO projects.

United Kingdom
30 Oct 2026

Source

UK introduces eVED pay per mile tax for electric vehicles from 2026

The UK Government confirmed in the 2026 Budget it will implement eVED, a pay per mile tax on electric vehicles first proposed in 2025. Battery electric vehicles will be charged 3p per mile, while plug in hybrids and fuel cell vehicles will pay 1.5p per mile. The Office for Budget Responsibility estimates a BEV driver covering 8,500 miles annually will pay an additional £255 per year.

Why it matters

The new tax structure directly affects total cost of ownership calculations for fleet operators and workplace charging programmes, potentially influencing procurement decisions and charging infrastructure investment strategies. CPOs may need to adjust pricing models as the tax narrows the running cost advantage of EVs over combustion vehicles.

United Kingdom
29 Oct 2026

Source