Group 1 - The introduction of a new 3p pay-per-mile tax on electric vehicles (EVs) is expected to make petrol and diesel cars more expensive as manufacturers limit their sales to meet net zero targets [1][4][7] - The car industry is likely to face a decline in overall sales, with dealers needing to implement significant discounts on EVs to meet mandated quotas [3][5] - The Zero-Emission Vehicle (ZEV) mandate requires that 33% of cars sold this year must be electric, increasing from 28% in 2025 and 22% in 2024, with a target of 100% by 2035 [5][6] Group 2 - The new tax on electric vehicles may inadvertently lead to higher prices for petrol and diesel vehicles as the market adjusts to maintain the required share of electric car sales [2][6][7] - The Institute for Fiscal Studies (IFS) has indicated that companies will need to raise petrol and diesel car prices to encourage electric vehicle sales [4][6] - The current average price of EVs remains significantly higher than that of equivalent petrol cars, prompting manufacturers to resort to price cuts to ensure sufficient sales [5][6]