In 2022, battery-electric was the second most popular propulsion type within new passenger car registrations, at around 267,200 sales, and its popularity has been increasing over the past years despite the overall drop in passenger car sales recorded in the UK at the onset of the COVID-19 pandemic. The various types of electric propulsion were the only car types to record a rise in sales between 2019 and 2020, while fossil fuel vehicle new registrations decreased. The supply chain issues, which started in 2021, and the raw material price hike in 2022 did not halt the battery-electric vehicle (BEV) market expansion. BEVs made up most of the estimated electric vehicle revenue in the UK in 2022 and were projected to amount to around 16.4 billion Great British pounds in 2028. This inflated BEV demand also contributed to the United Kingdom ranking among the leading European markets for electric cars.
Access to electric vehicle charging: A hurdle for the EV market
England’s South East region topped both the electric car parc and new electric vehicle registration rankings in 2022, reporting the country's largest electric vehicle fleet and market. This success is reflected on a DVLA local authority level, as around 39.3 percent of new cars in Oxford were electric. This made Oxford the second local authority with the largest share of EVs among new vehicle registrations. The successful electric vehicles record in the South East partly relates to the region having the widest network of public rapid electric vehicle charging points and ranking second for its overall public charging network.Charging infrastructure access is one of the main hurdles the United Kingdom will need to address to reach its fleet electrification targets. Government plans from 2022 aimed for the public charging network to grow to 300,000 charging points by 2030. In July 2023, the country had achieved nearly 15 percent of this goal—Just over 44,000 public charging devices of all charging speeds were available in the country. Most of these chargers used alternating current, a typically slower type of charging as each vehicle’s onboard chargers need to convert the electricity into direct current.
Charging speed is one of the many challenges of EV charging access. Most of the UK’s public network has restricted accessibility, meaning drivers cannot recharge their vehicles at all hours of the day. Destination chargers were also the most common chargers along UK roads. Destination charging refers to charging devices available at the end of a driver’s journey, such as in car parks, retail car parks, and leisure places. As of July 2023, there were around 43.4 percent more destination chargers than on-street chargers, which are available in residential areas. This disparity between charging locations contributes to EV drivers’ dissatisfaction with the UK’s public charging infrastructure. In a November 2021 survey, 41 percent of UK respondents reported being satisfied with the public infrastructure at motorway service areas, a share which dropped to 38 percent for public charging everywhere else.
Consumer behavior: Challenges and opportunities
While attracting consumers to electric vehicles is a challenge for the UK government, auto manufacturers also have to contend with increased competition in the market. In August 2022, around 45 percent of consumers in the United Kingdom reported being likely to change their vehicle brand when switching to an electric vehicle. In 2022, Tesla was the best-selling brand in the United Kingdom, holding over 21 percent of the BEV market. Its Model 3 was also the most common electric vehicle in circulation in the country, followed by the Nissan LEAF and Model Y. However, while Tesla reports good UK sales and a strong presence in the UK fleet, traditional manufacturers have also been working on electrifying their sales. Over 29 percent of BMW's car sales were electric in July 2023, while the German automaker was also the second leading BEV brand in the country.Consumers under 30 years old were the age group with the highest interest in purchasing an electric vehicle as of August 2022. However, electric vehicle purchase intentions are also impacted by the cost of living crisis in the United Kingdom. Over 30 percent of respondents to an April 2022 survey reported intending to switch to a cheaper car for their next purchase due to the general cost of living increase. Meanwhile, 27.3 percent mentioned the economic downturn did not influence their buying intention. The electricity Consumer Price Index skyrocketed in 2022, and some 93 percent of UK residents were concerned about the energy price hike. This inflation is reflected in the electric vehicle charging price, particularly at-home charging. In 2022, on average, it took nearly 26 Great British pounds to fully charge a Tesla Model 3 Long Range at a rate of 34 pence per kilowatt-hour.