Last Updated on: 4th December 2024, 07:48 am
- The Electric Car Scheme shares its forecasts for the UK’s electric vehicle future.
- Will Trump’s return to the White House impact UK EV sales?
- Can the EV industry rise to the challenge of the 2030 goals?
The Electric Car Scheme has outlined its predictions for the UK’s electric vehicle market in 2025, shedding light on how these developments may influence drivers, infrastructure, and the wider industry.
Progress in EV Adoption
The year 2025 is poised to be a game-changer for EVs. With Donald Trump set to re-enter the White House in January, his pledge to scrap subsidies in the US could shake global markets. In the UK, carmakers are preparing for a government mandate requiring 28% of new vehicle sales to be electric by the end of 2025.
Figures from The Society of Motor Manufacturers and Traders (SMMT) suggest growing demand for battery electric vehicles. October 2024 saw EVs account for 20.7% of new vehicle deliveries, up from 15.6% in October 2023. Sustaining this level of growth could bring the industry closer to meeting its 28% target, marking a significant step towards a greener future.
A Booming Used EV Market
The second-hand EV sector experienced rapid expansion in 2024. The Electric Car Scheme’s introduction of a used EV salary sacrifice plan has made these vehicles increasingly popular, with pre-owned EVs now comprising over 50% of its sales.
Declining prices for used electric vehicles are helping to overcome affordability concerns. For 68% of consumers, cost is the main barrier to EV adoption. As leases end and more vehicles enter the second-hand market, used EVs are expected to play an even greater role in driving adoption.
Revolutionising Charging Solutions
The UK is on track to have over 100,000 public charging points by mid-2025, a tenfold increase compared to the country’s remaining petrol stations. The rise of rapid and ultra-rapid chargers is expected to alleviate range anxiety, which remains a concern for 40% of potential EV drivers.
Innovations in home charging, such as off-peak smart charging options and salary sacrifice schemes for charging solutions, could reduce running costs further, making EVs more appealing as petrol prices remain high.
Trade Wars and Market Dynamics
Donald Trump’s policy changes could inadvertently benefit the UK EV market. Removing US tax incentives and imposing tariffs on foreign EVs may drive manufacturers to shift focus to other regions, including the UK. The influx of affordable Chinese-made EVs could be a turning point, accelerating accessibility and affordability.
Thom Groot, CEO of The Electric Car Scheme, remarked: “The electric vehicle market is on the verge of a major transformation by 2025, and it’s an exciting time for both the industry and consumers. With battery technology advancing and governments around the world ramping up support, we’ll see EVs become increasingly accessible and affordable. As cheaper Chinese EVs become available, and the used EV market matures, we could see EVs available for less than £200 a month, a much more affordable price point.
“EV uptake was never going to be linear, like many things it goes through peaks and troughs, but we could be on the cusp of a significant jump as affordability increases rapidly. The UK has a long way to go to reach the 2030 target, but there is significant desire to achieve this from consumers. This is exactly why we set up The Electric Car Scheme, to help make it simpler and cheaper to get behind the wheel of an electric car.”
