Vauxhall responds to UK Government’s new EV taxes with massive price cuts

Vauxhall has reacted to the UK Government’s decision to introduce an ‘Expensive Car Supplement’ on electric vehicles over £40,000 by slashing prices across its EV line-up.

This means that no all-electric Vauxhall will cost buyers more than £40k with immediate effect. The Stellantis-owned manufacturer’s decision will also see buyers save £2,125 in ‘road tax’ (Vehicle Excise Duty, or VED) during the first few years of EV ownership.

Until April 1, 2025, EVs were exempt from VED. After today, owners of new electric cars must pay the lowest first year rate of vehicle tax, which is set at £10 for zero emissions vehicles (ZEVs). From the second tax payment onwards, they will pay the standard rate of £195; the same as cars powered by an internal combustion engine.

Moreover, EVs priced at over £40,000 including options will be taxed even further as of April 1, courtesy of the ‘Expensive Car Supplement’. This fee imposes an additional annual ownership fee of £425 over five years, beginning from the second year of registration on top of the standard rate. As a result, electric car drivers whose vehicle cost over the £40,000 threshold will pay £620 per year in road tax, or a total of £3,110 over the first six years of ownership.

For vehicles below £40,000 this is a total of £985 for the same period; a saving of £2,125. Prior to April 2025, EVs were road tax exempt. electric cars. Vauxhall remains committed to the UK’s 2035 EV drive  and – alongside bodies such as the SMMT and ChargeUK – it has urged the government to rethink its strategy towards EVs.

Eurig Druce, Vauxhall’s managing director, commented: “With electric cars no longer exempt from Vehicle Excise Duty, Vauxhall is making electric mobility accessible and affordable for British drivers. The Vauxhall electric car range now sits below the £40,000 Expensive Car Supplement threshold, saving customers some £2,125 in road tax over the first few years of ownership.

“The threshold for the Expensive Car Supplement has remained at £40,000 since inception in 2017 despite subsequent high levels of inflation – if it were to have risen with inflation it would now be around £52,000. With the average price of an EV in the UK at around £48,000, this new tax means that customers buying some of the more attainable electric cars on the market are now being penalised whilst at the same time we are trying to move as many British motorists to electric as quickly as possible.

“The good news is that Vauxhall electric customers are below this new threshold, but we’d urge the government to reconsider this new measure and ensure taxation policies incentivise the majority of drivers to make the shift to electric vehicles.”

The cheapest car in the brand’s EV range is currently the Corsa Electric, which now starts from £26,880.