Keep electric cars exempt from Congestion Charge, says Polestar boss
Electric car users should not be forced to pay London’s congestion charge, even at a discount, the boss of Polestar has said.
Transport for London (TfL) last week unveiled proposals to hike the Congestion Charge by a fifth last week, the first increase since 2029.
The announcement was coupled with news that electric vehicle (EV) drivers would have to pay the levy for the first time next year, but at a 25 per cent discount.
“It’s one of the things where we’ve got to get the balance right between carrots and sticks,” said Matt Galvin, the UK chief of Polestar, the Swedish EV maker seeking to rival Tesla.
Galvin told City AM the additional levy for electric car users had “slipped under the radar” but comes at a “really bad time” for the industry.
Long-running concerns over private demand for EVs have persisted into 2025, with recent data showing uptake has lagged behind forecasts. The UK is currently working towards a 2030 ban on sales of new petrol and diesel vehicles.
“The biggest challenge we have is around the retail consumer and being able to attract them to consider electric cars for the first time,” Galvin said.
Motorists who have made the transition are already being forced to pay Vehicle Excise Duty (VED) for the first time this year. While this has been put under review by ministers, Galvin said the uncertainty was hindering the transition.
“Add that together with little things like congestion charge zones and actually that public charging is still very expensive,” he said.
Don’t block EV transition, says Polestar
The government also recently agreed to water down the zero emission vehicle (ZEV) mandate, which proposed fining manufacturers that miss steadily increasing EV sales targets.
“We need to accelerate the transition to EVs not put things in the way or blockers in the way of people making that choice,” Galvin told City AM.
TfL argues the congestion charge increase is critical to keeping congestion down in the capital. Launched in 2003, it applies from 7am to 6pm on weekdays and from noon to 6pm on weekends.
More than 2,000 additional cars would be driven into the zone on an average weekday next year without the proposed changes, London’s deputy mayor for transport, Seb Dance, has claimed.
A TfL spokesperson said: “The Congestion Charge has been in place since its introduction in 2003 to manage traffic and congestion in the central one per cent of London during the busiest times of day.
“Without the changes proposed in our consultation, the charge would become less effective, with an estimated additional 2,200 vehicles in the zone on an average weekday.”
“Under these proposals, we are also proposing a new Cleaner Vehicle Discount for those who do need to drive in the zone so they would still be able to benefit from a discount if they drive an electric vehicle, with a greater reduction for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans for commercial purposes.
“Central London is one of the best-connected places in the world with high quality sustainable transport options.”