IQ

Insight

Quarterly

Q1/2025

Government-backed incentives and new technology brought a wave of electric vehicles (EVs) to the market between 2010-2020; however, recent years have seen the market begin to stall. A new study of 2,700 UK motorists revealed that 79% didn’t drive an EV and only 17% were considering one for their next purchase. Consumers have more choice than ever with new brands, improved technology, and better range, so what’s stopping them?

Our research brings to life the central challenges that the UK faces in the next leg of its journey towards zero-emission transport. With the UK government’s Zero Emission Vehicle (ZEV) mandate undergoing a period of revision, it is vital that the consumer’s voice be heard as regulations are set and targets enforced.

Cost is crucial

It is not news that the cost of EVs is proving a blocker for many motorists. 69% of drivers said they wouldn’t be willing to pay more for an EV than a petrol or diesel alternative, yet, on average, EV vehicles cost 12% more¹. 

Greater incentives could fan the smouldering cinders of EV adoption, as 86% of drivers don’t think there are sufficient incentives for driving an EV. When asked what incentives they would like to see, drivers’ top three were central to driving down the cost of owning an EV: 

• Financial subsidies or grants to reduce the cost of the vehicle (62%) 

• Reduced cost of charging away from home (56%) 

• Free/discounted home chargers (52%) 

We have seen the impact incentives can have. The Plug-In Car Grant helped to drive the adoption of EVs among private consumers, with 83,052 eligible cars registered between 2011 and 2016². Further, the success of brands bringing lower-priced models to the market, such as BYD (+658% market share YoY), demonstrates the appetite for electric at a reasonable price. 

Managing an EV’s battery also proves to be a cause for concern. 68% of drivers felt manufacturers and car dealerships should improve their information on battery health, lifespan, and recycling to meet their needs. 

Addressing this confidence crisis is crucial. Moving to electric feels like a leap of faith for many drivers, and the data clearly illustrates that more needs to be done to help more drivers make the change. We know that once behind the wheel, many EV drivers are happy with the change. Of those surveyed who already drove an EV, 87% said that driving an EV had met or exceeded their expectations. 

Infrastructure blockers

Confidence levels will always struggle if infrastructure continues to lag. The UK’s charging infrastructure has a major image problem, as 82% of drivers think it is poor. EV drivers also reported issues finding charging points (28%) and 1 in 4 found charging costs to be too high. So where’s the biggest issue? 45% of drivers felt remote areas faced the biggest infrastructure challenges. 

Creating deadlines may convey a sense of urgency to the general public about the need for electrification, however that alone is not enough to drive adoption. The government needs to address this growing consumer confidence crisis with tangible incentives to help bring the price of EVs down and improve the nation’s charging infrastructure, while manufacturers and dealerships need to help address concerns about making the move to electric. Without these measures, we will simply set deadlines that we can’t hope to achieve.