A number of reports in recent weeks have suggested that Britons are starting to switch off to the idea of owning an electric car – but what do drivers have to say about it?
According to a new poll of 15,000 motorists by AA cars, 22 per cent said they will be buying a new or used motor this year – which is the same proportion as when it quizzed Britons about their intentions at the beginning of 2022.
However, this year’s results show only 18 per cent intent to buy an electric vehicle (EV) next, which is down from a quarter (25 per cent) on last year’s poll.
This follows a decline in electric car appetite recorded in the UK last month, with 13 per cent of new vehicles sold being pure electric models in January, down from an average of 17 per cent for the full year in 2022.
Does this suggest British drivers are indeed losing their appetite for electric cars?
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Is electric car demand on the decline? A new poll of 15,000 drivers found fewer intend to buy an EV this year than they did last. But is the study backed up by sales and market data?
The AA says that despite the drop-off in drivers looking to buy an EV this year, the research found that a clear majority of are still committed to going electric further down the line.
When the 15,000 drivers surveyed were asked if they are planning to buy a battery-powered car in the future, almost three-quarters (73 per cent) said yes.
While January new car sales figures showed a decline in demand for EVs compared to 2022 as a whole, registrations were still higher than the same month a year earlier.
The volume of registrations last month was 6 per cent up on January 2022.
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Battery Electric Vehicle (BEV) sales in January were up on the same month last year but slightly down on 2022 as a whole. That said, 17,294 EVs were bought in January compared to just 10,399 diesel cars
In contrast, diesel sales plummeted by 15 per cent – almost 2,000 vehicles – over the same comparative period.
In fact, electric cars are now easily outselling diesels.
Some 17,294 battery models were bought last month. In comparison, dealers sold just 10,399 diesel cars.
Thinktank New AutoMotive’s Electric Car Count (ECC) report – a comprehensive review of electric car sales data in the UK – found that German brands are leading the way in the electric revolution and says the introduction of Government rules from 2024 dictating how many EVs brands sell will only increase demand for zero-emission models.
Electric car market share of new motor sales in January grew by 1 per cent and Volkswagen, Audi, and BMW collectively accounted for three in every ten new electric car sales in the first month of the year.
Ben Nelmes, chief exec at New Automotive, said: ‘Following a month of negative headlines for the UK’s transition to electric cars, we were pleasantly surprised to see sales of electric cars continue to grow [in January].
‘The data show that UK motorists are perfectly happy to embrace cleaner, cheaper, better transport.’
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The figures show that new electric car demand remains robust but what about the second-hand market? We spoke to experts from the used sector
Is there big demand for used EVs?
While new car sales show there’s growing appetite for electric cars, this is not yet been reflected on the second-hand market.
Electric cars represented just 1 per cent of all used transactions in 2022, according to the latest official figures from the Society of Motor Manufacturers and Traders.
This primarily is because there are so few EVs hitting the second hand market to date, with the boom in registrations in recent years only just starting to spark a rise in models appearing at second-hand forecourts.
However, Auto Trader’s latest market report suggests a recent flood of used electric vehicles entering the market has driven down the value of battery cars.
By the middle of this month, the average used EV advertised price on Auto Trader was £34,197. While this is far higher than the average across all fuel types collectively (£17,880), it is a 9.1 per cent decline in value compared to mid-February 2021.
There’s been a more significant fall in ‘premium EV’ values, primarily driven by nosediving used Tesla prices.
The average luxury EV price is down a whopping 13.1 per cent year-on-year, dropping to £43,762.
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Richard Walker, Auto Trader’s director of data and insight, says there’s been a 303% year-on-year increase in used EV stock
‘This disparity has been fuelled, in part, by Tesla’s new car price cut, and the subsequent adjustment in used prices; the price of a one-year-old Standard Range model fell circa £1,400 overnight on Auto Trader,’ the company said.
In contrast, the average price of a used petrol (£16,266) and diesel (£16,326) car is up 3.3 per cent and 1.4 per cent respectively.
Experts at the sales platform say this is partly due to a growth in stock of 303 per cent year-on-year as many financed electric cars become available to used buyers.
Director of data and insights, Richard Walker, said: ‘What’s happening in used EV prices is a natural consequence of a sudden and sharp increase in supply. Consumer demand has been dampened slightly by high energy prices in the last few months, but contrary to what some reports may suggest, consumer appetite for electric has far from fallen off a cliff.
‘Availability and affordability have been major drivers in the success of some brands in the new EV market, so this increase in stock and the slight reduction in prices may well encourage more used car buyers to make the switch to electric.’
AA Cars says it has tracked a decline in interest in EVs on its own website in recent weeks.
In the last three months of 2022, electric cars accounted for only 4.8 per cent of searches made on its used car platform. This is down from 11.2 per cent over the same period in 2021, it said.
One reason for drivers’ cooling interest in EVs could be the steady fall in fuel prices just as household electricity prices are set to rise sharply in April as Government support is wound down.
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Almost a third of motorists say low running costs are one of the most important factors when choosing a car. With fuel prices falling and energy costs on the rise, EVs have become less attractive, AA Cars says
The AA Cars research found that eight in ten (82 per cent) drivers who are planning to buy a car this year will be swapping their existing petrol or diesel vehicle for another petrol or diesel model.
More than half (55 per cent) plan to buy a used petrol or diesel vehicle, while just over a quarter (27 per cent) will be looking for a brand new model.
Of those who are looking to purchase a vehicle this year, many are looking at ways to limit their spending and get the most for their money.
This will ultimately rule out the purchase of a second-hand EV for these buyers, especially with average prices far higher than petrols and diesels.
Almost a third (31 per cent) of motorists say low running costs are one of the most important factors when choosing a vehicle, and 30 per cent say they are looking for a car that will last them a long time.
Mark Oakley, director of AA Cars said: ‘It is reassuring for the car industry that so many drivers intend to buy a car this year, though stretched household budgets are often leading people to make different purchasing decisions.
‘AA Cars search data shows buyers are showing particular interest in smaller cars that are affordable to buy and cheap to run. This may also be behind the cooling appetite for EVs, as they typically cost more upfront than their petrol or diesel equivalents.
‘With price inflation of the most popular used models levelling off, value is improving and this is a good time to start looking for a second-hand car.
‘To ensure you are getting the best value and reliability when buying a used car this year, it is recommended that you get the vehicle inspected by an expert before parting with your money to check it is not likely to need imminent, and potentially costly, repairs.’