UK consumer sentiment towards Electric Vehicles (EVs) is gathering significant momentum while buying intent for petrol and diesel vehicles continues to decline, according to EY’s latest Mobility Consumer Index.
Fifty-nine per cent (59%) of UK respondents intending to buy a vehicle in the next two years said their preference would be a Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV) or a Plug-in Hybrid Electric Vehicle (PHEV), up from 54% in 2023 and marginally above the average across the major auto markets surveyed (58%).
Specifically, 23% said they were most likely to buy a BEV next, up from 19% last year, and 27% said they would opt for an HEV, up from 25% last year. Meanwhile, 10% of respondents said they were most interested in purchasing a PHEV, in line with last year’s figures.
In contrast, only 36% of respondents intending to buy a vehicle said they would prefer to purchase an Internal Combustion Engine (ICE) vehicle, down notably from 41% in 2023 and slightly lower than the average across the major auto markets surveyed as part of EY’s latest Mobility Consumer Index (37%).
Overall, 56% of UK respondents said they were either extremely likely or somewhat likely to purchase a vehicle in the next two years, up significantly from last year’s figure of 45%, and the highest figure of any European country.
According to UK respondents, the leading factor driving increased interest in EVs is environmental concerns, with 35% citing this as a key reason for wanting to purchase one. Meanwhile, 31% cited high fuel prices, and 27% identified rising penalties on ICE vehicles such as additional taxes as a key concern driving increased preference towards EVs.
David Borland, EY’s UK & Ireland Automotive Leader, said: “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. This is particularly pleasing given the challenges the UK has seen in declining private retail demand for vehicles in recent times, with fleet sales playing a crucial role in driving new car registration growth.
“A particularly interesting finding from this year’s survey is that consumer interest in purchasing petrol and diesel vehicles is declining quite significantly – a trend which could prove a crucial support to the UK’s EV transition, especially in light of the Department for Transport’s intention to revert the ICE sales ban back to 2030. This is particularly significant given some of the well-documented recent reports around the challenges that EV demand continues to face. Going forward, it will be critical for key players across the automotive ecosystem to collaborate in providing adequate incentives to consumers to make the switch to ensure the UK’s increasing EV buying intent follows a consistent upward trajectory and is converted into increasing sales.”
EV interest and perceptions improving, but concerns remain
Despite the uptick in EV buying intent among UK respondents to EY’s latest Mobility Consumer Index, there are still several concerns deterring some consumers from purchasing an EV.
According to the Index, the top concern is expensive upfront purchase costs, with 37% of survey respondents citing this as a reason they may not opt to purchase an EV, up marginally from 36% in 2023.
Meanwhile, a lack of charging stations was the joint-second most cited concern, with 23% of respondents unconvinced by the number of charging facilities in their locality and/or on their travel routes. However, this marks a significant improvement on 2023, when 37% cited a lack of charging stations as a key deterrent from making an EV purchase.
With a focus on alternative powertrain technologies, a lack of adequate charging infrastructure emerged as one of the key reasons respondents were considering an HEV or a PHEV rather than a BEV.
The other joint-second most noted deterrent around EVs was expensive battery replacement – marking the first time this has emerged as a leading issue for respondents.
Importantly, attitudes towards the overall EV experience in the UK appear resilient according to the Index, with a significant proportion (88%) of current EV owners in the market for a vehicle saying they would likely buy another EV, similar to last year’s figure (90%).
Maria Bengtsson, Head of Mobility at EY UK, said: “The EV story in the UK has been mixed of late. On the one hand, growth in sales of alternative powertrain vehicles so far in 2024 has represented encouraging progress. However, the Zero Emissions Vehicle (ZEV) Mandate requires automakers to ensure at least 22% of their sales are accounted for by ZEVs in 2024.The fact that the UK’s year-to-date BEV market share as of September was only 17.8%, according to the Society of Motor Manufacturers and Traders (SMMT), is therefore a concern from a compliance perspective, and faster, more widespread uptake is needed. This is a particularly marked issue given the substantial penalties facing manufacturers for non-compliance.
“EY’s latest Mobility Consumer Index indicates the UK is making in-roads with its EV transition, but there is room for improvement to ensure a smooth and effective transition while minimising teething problems. It’s important that policymakers work closely with manufacturers and retailers to help improve perceptions further around all-electric vehicles. Another key challenge will be addressing consumer reluctance around being wholly reliant on charging infrastructure. Expensive battery replacement is also a key concern for UK respondents, so offering solutions like competitive Battery as a Services (BaaS) options could help boost adoption.”.
Dealerships remain crucial to UK consumer buying experience
In terms of the purchase experience for consumers, physical dealerships continue to play a crucial role. Fifty-five per cent (55%) of respondents said they would prefer to purchase a new car from a dealership/showroom with a slightly lower number (49%) for used cars. Meanwhile, 33% of UK respondents said their preferred vehicle purchase method was online, while 14% say they would evaluate all options, highlighting the ongoing need for both physical and digital retail experiences.
Suyog
( Wednesday, October 23, 2024 - 13:09 )
The EVs’ are really need of the day taking into consideration the environmental concerns