UK has Europe’s strongest EV market but there are ‘bumps along the road’
Sales of electric vehicles (EVs) in the UK are higher than in any other European country, but experts believe demand could be even stronger with a series of measures.
Pro-EV groups say the lack of purchase incentives, perception of public charging infrastructure and the taxation system are putting some people off from making the switch to electric motoring.
Ginny Buckley, founder of EV-buying advice website Electrifying.com, said the UK has a “strong market” for EVs, but there are “bumps along the road” towards the 2030 ban on the sale of conventionally fuelled cars.
She told the PA news agency the higher upfront cost of new EVs compared with petrol or diesel cars is the main limiting factor.
“People really don’t understand a lot of the benefits of owning an electric car in the long term,” she said.
She cited a survey which suggested only 45% of drivers are aware of low-cost electricity tariffs for domestic charging, which means “you can run your EV for pennies per mile”.
Ms Buckley also said the “perception” of public charging is a major issue.
The infrastructure is “improving” but many drivers will have “read a story that somebody’s had a rotten experience and that really filters through”, she said.
Quentin Willson, founder of EV lobby group FairCharge, said the new EV market is “being held back by a lack of consumer disposable income”.
He added: “Government has promised to help demand for new EVs. They should cut VAT on public charging and help private buyers.”
Successive governments have rejected pleas to reduce the 20% VAT rate on public EV charging so it is equal to VAT on domestic charging, which is 5%.
Government grants for the purchase of new electric cars were abolished in June 2022.
Government has promised to help demand for new EVs. They should cut VAT on public charging and help private buyers
The plug-in car grant was set at £5,000 when it was introduced in 2011, but was reduced to £1,500 by the time it ended.
Many EVs are now bought by people able to take advantage of tax benefits by making purchases by a salary sacrifice scheme through their employer.
There are also fears that changes to vehicle excise duty (VED) rules introduced on April 1 will discourage EV purchases.
The Treasury removed EVs’ exemption from VED, meaning all owners will be charged £10 for the first year after a vehicle is registered, and the standard rate of £195 for subsequent years.
Drivers who buy a new EV with a list price exceeding £40,000 also incur the expensive car supplement, known as the luxury car tax.
That is £425 annually from years two to six after a car is registered.
AA president Edmund King said “more needs to be done to make EVs accessible for everyone”, as generally drivers are “hesitant but most are not hostile to the change”.
He went on: “Help is needed to stimulate demand for EVs including broader fiscal incentives.
“Drivers still raise concerns about cost of purchase, cost of charging and availability of chargers.”
During the initial development of EVs, the fear of running out of charge before a journey is completed or a car can be plugged in – often referred to as range anxiety – was cited as a key barrier to people switching to electric motoring.
But Mr King said this is “a thing of the past”.
Latest AA figures show just 1.9% of EV callouts are because of batteries with limited or no charge.
That is down from 2.8% in June 2021 and 4.6% in June 2019.
The AA attributed the decrease to a boost in the number and reliability of public chargers, higher quality charging support for customers, improved range on newer EVs and better driver education and information.
Figures from the Society of Motor Manufacturers and Traders show uptake of pure battery electric new cars reached 382,000 units last year.
That was slightly above Germany’s total of 381,000 after a 27% decline from 2023, partly attributed to a reduction in purchase incentives.
EVs held a 19.6% share of the UK’s new car market last year, up from 16.5% in 2023.
