Rising living costs hamper EV adoption The growth in the number of drivers considering buying a BEV Battery Electric Vehicle as their next car has slowed, according to a new study, as two-fifths of UK drivers said they would not even consider an EV or hybrid vehicle when planning on buying a new car. Uptake of electrified models is being hampered by the cost-of-living crisis and causing drivers to delay new car purchases, slowing the move towards more sustainable modes of transport, OC&C s latest annual Speedometer report has found. The report, which is built from a global survey of over, motorists from eight countries, found that while more than half of UK drivers now expect to own an EV at some point in the future, for most this is considered as a future ambition rather than an immediate priority. Price remains the biggest barrier, with UK respondents stating that cost was a concern when considering buying a new EV vehicle. Making EVs more affordable, with low monthly payments, will be a critical step to adoption. John Evison, associate partner at OC&C Strategy Consultants, said: “The cost-of-living crisis is certainly a bump in the road for the growth in EVs in the UK, but innovation on this scale rarely follows a straight line and there is still ample consumer demand for EVs if the barriers to access can be removed. “Making EVs more affordable will be a key priority for the industry, but dramatically reducing the sale price is not an option for automotive businesses in the current environment. Therefore, businesses should be looking at how they can make new ownership models like subscription or a short –-month leases more affordable to allay consumer concerns on cost, battery life and re-sale value and provide a variety of entry points for drivers considering their first EV.” Although supply pressures have played their part too, weaker demand can be seen in recent sales data with EV new registrations growing slower than the overall market in October in UK, losing share of new registrations for the first time since May. Despite the cost-of-living crisis, consumers are not planning on giving up their keys the report found that UK consumers still view their car as essential, and drivers are set to accrue more mileage this year than before the pandemic. Consideration of alternatives like car sharing is also not increasing in response to the cost-of-living and remains a minority pursuit. Consumers are instead holding on to their current cars for longer to reduce their impact until EV models are more affordable – a third of consumers say they will consider delaying their next car purchase for environmental reasons.
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