EY reveals interest in EVs rises in the UK as demand for petrol & diesel cars declines, driven by environmental concerns & cost savings

According to EY's latest Mobility Consumer Index, UK consumers are showing a significant shift in their preference for EVs, with decreasing interest in additional petrol and diesel cars. 

According to the report, 59% of UK respondents intending to purchase a vehicle in the next two years are now leaning towards Battery EVs (BEVs), Hybrid EV (HEVs), or Plug-in Hybrid EVs (PHEVs). It marks a rise from 54% in 2023 and is slightly above the global average of 58% in other major auto markets.

Breakdown of EV preferences:

23% of respondents prefer a BEV, an increase from 19% last year.

27% lean towards HEVs, up from 25% in 2023.

10% are likely to choose PHEVs, maintaining the same interest level as last year.

In contrast, only 36% of those surveyed still prefer Internal Combustion Engine (ICE) vehicles, down from 41% in 2023. The shift is slightly below the global average of 37% in other major markets.

Environmental and economic drivers behind the shift

Environmental concerns and rising costs related to ICE vehicles are the primary factors pushing UK consumers toward EVs. According to EY's Mobility Consumer Index: 35% of respondents cited environmental factors and penalties on ICE vehicles.

David Borland, EY's UK & Ireland Automotive Leader, emphasised the significance of this shift:

"Following the remarkable resilience shown by the UK's automotive sector over the past couple of years with consistent growth in new car registrations, it is encouraging to see EY's latest Mobility Consumer Index suggesting that the nation's forward-looking car buying intent is also on the rise."

Barriers to EV adoption: Cost and infrastructure

Despite the growing interest in EVs, UK consumers still face challenges that deter widespread adoption. The most significant barrier remains the high upfront cost of EVs, with 37% of respondents citing it as a concern, up slightly from 36% in 2023.

Other concerns:

Charging Infrastructure: 23% of respondents are worried about the lack of charging stations, representing a notable improvement from 37% last year.

Battery Replacement Costs: For the first time this year, expensive battery replacements emerged as a major issue for potential buyers.

Despite the concerns, the Index revealed a positive attitude among existing EV owners. An impressive 88% of current EV owners said they would likely buy another EV, indicating strong satisfaction with their electric driving experience.

Collaboration is critical to accelerating the transition

Maria Bengtsson, Head of Mobility at EY UK, highlighted the need for collective action to overcome the barriers to EV adoption:

"EY's latest Mobility Consumer Index indicates the UK is making inroads with its EV transition.

However, there is room for improvement to ensure a smooth and effective transition while minimising teething problems. Policymakers must work closely with manufacturers and retailers to help improve perceptions further around all-electric vehicles."

Maria further pointed out the urgency for automakers to meet the Zero Emissions Vehicle (ZEV) Mandate, which requires at least 22% of their 2024 sales to be zero-emission vehicles. The current BEV market share of 17.8% indicates a need for accelerated efforts to reach compliance.

Dealerships still crucial to the buying experience

Despite the rise of online shopping, physical dealerships remain a critical part of the vehicle purchase experience in the UK. According to the survey:

55% of respondents prefer to buy a new car from a dealership or showroom.

49% prefer dealerships for used car purchases.

33% are open to buying vehicles online, while 14% said they would consider all available options.

The data highlights the continued importance of both physical and digital retail experiences in meeting consumer expectations.

The UK is witnessing a significant shift in consumer sentiment toward electric vehicles, driven by environmental concerns and economic factors.

While there are still hurdles to overcome, including cost and infrastructure challenges, collaboration among industry stakeholders and focusing on consumer incentives could accelerate this transition. With a balanced approach to traditional and digital sales channels, the UK's journey towards a greener automotive future looks promising.