More than half of UK drivers are likely to choose an electric vehicle (EV) as their next car – rising to 75 per cent among those aged 18 to 24 – according to new research published today to coincide with World EV Day.
The study also revealed how 45 per cent of current EV drivers said they were driven to “go electric” by a desire to reduce their carbon footprint.
However, the research commissioned by CA Auto Bank’s UK vehicle financing subsidiary CA Auto Finance also warned that despite growing driver interest in EVs, a number of barriers to adoption remain that could hamper manufacturers’ efforts to deliver on sales target set through the Zero Emissions Vehicles (ZEV) Mandate.
For example, 55 per cent of current EV drivers flagged battery life as their biggest concern, followed by accessibility of charging stations and then range anxiety, which was identified by 38 and 37 per cent of respondents, respectively. Forty-two per cent of EV drivers claimed they have felt compelled to plan journeys in advance since switching to account for charging infrastructure and range concerns.
Moreover, while three quarters of current EV drivers would consider purchasing a second-hand electric car, around a third said they were hesitant due to concerns over residual value.
The ZEV Mandate requires at least 22 per cent of new cars and 10 per cent of new vans sold to be zero-emission this year, with the threshold then set to climb year-on-year to reach 80 per cent by 2030 and 100 per cent by 2035.
A number of manufacturers are on track to meet this year’s target and EVs’ market share in August topped 22 per cent, as sales of zero emission models continued to climb.
However, auto industry trade body the SMMT has warned the market overall is unlikely to reach the 22 per cent goal for the full year, meaning some manufacturers could be exposed to the risk of fines. The sector has repeatedly called on the government to introduce new incentives to encourage further take up of EVs and boost investment in charging infrastructure, especially in rural areas.
Today’s survey saw almost four fifths of UK drivers claim that incentives would encourage them to shift to an EV.
“It’s clear that the UK is divided in its opinion on electric vehicles as the overall market continues to evolve, but its longer-term future remains promising,” said Christian Gorton, marketing Director at CA Auto Finance. “Our research shows that younger drivers are particularly eager to switch to EVs and with list prices on new electric vehicles continuing to decrease, there is potential for organic growth. However, to retain existing EV drivers and encourage others to make the switch, we require a clear plan from the government on how they will support the industry to meet its ambitious targets, as well as industry-driven solutions that make EV adoption more convenient.”
He also predicted concerns about the residual value of second hand EVs should recede over time. “Demand for older EVs is already increasing as consumer recognise that a three-to-five-year-old electric vehicle still retains nearly all of its original range and performance,” he said. “The significant depreciation observed in recent months has created real bargains in the used EV market, gradually shifting consumer interest towards pre-owned EVs.”
In related news, energy giant ScottishPower marked World EV Day by announcing a new smart tariff called EV Optimise, which allows EV drivers to automatically charge up at times when demand on the UK’s power network is low, resulting in savings to their electricity bill.
ScottishPower said its customer bas currently includes over 10,000 EV customers and it has installed over 4,000 home chargers.
It added that EV Optimise would allow customers to charge their EV for as little as 2p per mile, which works out at around six times cheaper than the price of petrol.
“We want to make the transition to EVs as easy as possible, and make sure that our customers can continue to benefit from owning or leasing a low-carbon vehicle,” said Andy Mouat, head of smart mobility at ScottishPower. “Through EV Optimise, customers can opt in, plug in, and let us take care of the rest. We’ll make sure that we’re charging at the cheapest and greenest times, and pass savings back to our customers. Not only are our EV-driving customers lowering their bills and their own carbon footprint, but they’re also helping us to support the UK’s decarbonisation journey too.”
Want to understand what is going on at the cutting edge of sustainability? Check out BusinessGreen Intelligence – the premier information for professionals focused on the UK’s green economy.