eVED Consultation response: The IMI highlights flaw in government plan

The IMI warns that not every MOT garage will be able to resolve EV mileage anomalies

The Institute of the Motor Industry (IMI) has welcomed the government’s response to its Consultation on the introduction of electric Vehicle Excise Duty (eVED). While significant concerns remain about the impact of the eVED on electric vehicle sales at a time when there is still lack of wholesale take up of electric motoring, the IMI believes the Consultation response shows ministers have accepted several of its practical recommendations. However, the IMI is warning that a critical delivery risk remains unresolved: the assumption that every MOT garage will be equipped to deal with EV mileage anomalies.

The IMI’s Consultation submission supported the principle of a mileage-linked model, but stressed that implementation must reflect real-world workshop capability, EV technical complexity, odometer discrepancies, diagnostic access issues and workforce capacity constraints.

Nick Connor, CEO of the IMI, said: “The Consultation outcome shows the government has genuinely listened to the automotive profession. Ruling out mandatory telematics, building eVED into the existing VED and DVLA systems, anchoring mileage validation in the MOT, and committing to simple reconciliation and sensible arrangements for fleets and lifecycle events are all things the IMI called for. That is a pragmatic foundation, and we welcome it.

“However, there is one big question the response does not yet answer: can eVED be delivered safely and consistently if the system assumes every MOT garage can deal with EV mileage anomalies? The risks around odometer tampering, mileage data being held in more than one place in a vehicle, and the central role MOT garages will play in recording mileage have been recognised in the Consultation response, yet there is no clear plan of how those risks will be managed on the workshop floor.

“Diagnostic capability varies significantly across the MOT network. Reading a dashboard odometer is one thing; investigating a disputed, missing or potentially tampered mileage reading on an electric vehicle is quite another. 

“We are, therefore, urging government to adopt a number of practices we proposed in our submission to the Consultation. There need to be clear diagnostic escalation routes, competence-based accreditation and standards aligned with IMI TechSafe. There also needs to be a clear commitment to support for garages on equipment and training. Without these, disputes will fall inconsistently on garages, motorists and the DVLA, and public confidence in the new tax will suffer.”

The IMI will continue to engage with government as the detailed design of eVED progresses, representing the interests of the automotive workforce and the businesses that will be asked to deliver mileage verification in practice.

IMI Practical Recommendations

The Consultation response suggests the government listened to a number of the IMI’s practical recommendations, including:

• No mandatory telematics – any technology-based solutions will only ever be optional
• Use of existing VED and DVLA systems, rather than a separate new tax regime
• MOT-based mileage checks as the backbone of validation
• Simple reconciliation arrangements for underpayments and overpayments
• Special arrangements for fleets and leasing businesses
• Flexibility for lifecycle events such as sale, SORN and scrappage