Interest in Electric Vehicles Slumps by Two-Thirds: Report

Interest in Electric Vehicles Slumps by Two-Thirds: Report
A new number plate is put on a brand new Nissan electric car at a dealership in Northampton, England, on Aug. 5, 2022. Blackball Media/PA
Owen Evans
Updated:

Buyer interest in new electric cars in the UK has dropped by nearly two-thirds since the start of last year, according to new figures.

The online vehicle marketplace Auto Trader recorded a 65 percent drop in inquiries for electric vehicles last month compared with January 2022.

The sale of new petrol and diesel cars will be banned in the UK from 2030.

The company’s Road to 2030 report attributed the drop in interest to high costs, high-interest rates for borrowing, and a rise in energy prices.

New Petrol Cars

It also added that with consideration for new electric cars falling, people are instead looking at new petrol cars.

In the first quarter of 2023, 52 percent of new cars looked at on Auto Trader were petrol, up from 47 percent the year prior. This switch back to petrol follows continuous declines in its market share since the start of 2020.

It noted the market for new electric vehicles (EVs) has a lack of affordable choices, with models costing between £20,000 and £30,000.

New EVs are an average of 37 percent more expensive than petrol and diesel cars.

Auto Trader urged the government to offer better incentives for making the switch from conventionally-fuelled cars and called for a reduction in VAT for public charging so it is the same rate as home charging.

Ian Plummer, commercial director of Auto Trader, said: “These are difficult times for the UK’s road to 2030 ambitions and we are in danger of veering off track.

“If the government is serious about achieving its ambitions, it needs to do more.

“For example, it cannot be right that those who don’t have option of charging at home are forced to pay substantially more to charge their vehicles.

“While the extra £380 million announced in March to improve charging infrastructure will help, the goal of mass adoption is at risk unless we use the tax system inventively to spur on EV purchases and accelerate demand.”

A government spokesperson said: “Electric vehicles continue to offer opportunities for savings through cheaper charging and maintenance costs, and we have put £2 [billion] into helping people make the switch.

“Recent industry figures showed continued growth in new electric car registrations, and more EVs are entering the used car market—giving people more choice for accessing affordable EVs.”

Secretary of State for Energy Security and Net Zero Grant Shapps arrives for a Cabinet meeting at 10 Downing Street, London, on March 15, 2023. (Jordan Pettitt/PA Media)
Secretary of State for Energy Security and Net Zero Grant Shapps arrives for a Cabinet meeting at 10 Downing Street, London, on March 15, 2023. Jordan Pettitt/PA Media
Britain’s ban on new petrol and diesel cars will still take effect from 2030 as part of its net zero push, Energy Secretary Grant Shapps confirmed in March.

His plans featured a proposed mandate for zero-emission vehicles on new cars and vans, with a consultation due to close on May 24.

The mandate will set out strict requirements for car makers to sell an increasing share of electric vehicles annually from next year, so it can release an approach in mid-2023 and implement it in future legislation.

“The transition cannot happen through market forces alone,” the government wrote in the mandate proposal report.

At the time, a Department of Transport spokesman confirmed to The Epoch Times that the government “is committed to end the sale of new petrol and diesel cars and vans by 2030, and from 2035 all new cars and vans must be fully zero emission at the exhaust.”

Complaints

On Wednesday, the Motor Ombudsman posted that it had recorded the highest quarterly volume of consumer complaints about electric vehicles (EVs) during the opening three months of 2023.

One of the biggest rises in complaint areas was around vehicle range, it said.

A total of 273 disputes were logged during the first quarter of this year, compared to 104 for the same period in 2022, reflecting the increasing demand for pure battery-driven models.

In March, one of the key periods for new car registrations, 115 complaints were received from consumers about EVs.

Bill Fennell, managing director and chief ombudsman, said: “Reflecting the trend seen during the past two years, the level of customer service provided by a business and a consumer’s experience at the point of buying an electric vehicle were the most notable elements of discontent during the first quarter of 2023.”

He added that expectations that a “consumer’s car should achieve the quoted range for a full charge was also one of the main talking points, with greater variations in the actual figures being achieved becoming more noticeable in the cooler temperatures that we experienced since the turn of the year.”

PA Media contributed to this report.
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