16 December 2024
Electric vehicles (EVs) are a hot topic.
The new Government has been clear that it aims to uphold the 2030 deadline for phasing out cars that rely solely on internal combustion engines (ICE) as part of the Zero Emissions Vehicles (ZEV) mandate. By 2035, the mandate will require all new cars and vans sold in the UK to be zero emission. At the same time, it is increasingly apparent that many UK drivers remain hesitant to make the move to electric for their next car, and genuine mass adoption of EVs still seems far away.
The AA has been by drivers’ sides for more than a century, setting up the first filling station and road signs, and we serve more than 14 million drivers in the UK. We want to help to get it right, and support drivers through the biggest automotive sector shift in generations. There is an opportunity for the Government to provide clear leadership, information and incentives to help drivers to make informed decisions, leading to a net zero transition that works for them.
In our view, the ZEV mandate alone will be insufficient to make the net zero transition happen. Whilst the mandate is having a major effect on the supply of new EVs in the market, our research has found that supply is by now far outstripping demand from drivers.
Our members are telling us that they feel “hesitant, not hostile’ about making the switch to EVs. Drivers know that change is coming and most of them accept it, although there are about one fifth who can’t see themselves moving to an EV given their personal circumstances or preferences.
Our data shows that driver hesitance to make the switch to EVs is primarily driven by cost of EVs, concerns about charging infrastructure, and range anxiety.
These concerns are understandable as drivers face a transformational shift in their driving lives, but those who have moved to an EV tell us that they would rarely go back.
Higher depreciation currently seen on some EVs is also deterring investment from some fleets and private buyers but equally it means used EVs are increasingly more affordable. The lack of an established second hand EV car market is creating uncertainty around residual values, which in turn is making financing EVs more costly.
There is also a question of fairness as the switch is harder for the young, less affluent and urban motorists, particularly those who do not have access to off-street parking. In addition, company cars and salary sacrifice schemes incentivise EVs in a way that is not accessible to most. This can be helped by more on-street and community charging, battery health checks on used EVs and targeted incentives.
At the same time, our analysis and roadside experience suggests that range anxiety and concerns about running out of charge are less grounded in reality: less than 2% of EV breakdowns this year were due to being ‘out of charge’. This proportion has halved since 2021 and is close to the 1% of ICE breakdowns due to running out of fuel.
This has decreased due to increased investment in charging infrastructure, longer battery range and better driver information. New public charge points are being installed every 25 minutes, supported by a growing network of home, work and destination charge points.
Our insights tell us that many drivers are primarily experiencing a crisis of confidence when it comes to making the jump to EVs. The Government has given us all a tough deadline but drivers need essential information, guidance, and fiscal incentives to feel empowered to make the transition in a way that works for them.
The AA has always been the champion of the driver, and we have millions of touchpoints with them across the driver lifecycle every year. We are listening to our members and believe a determined, system-wide approach to unlocking demand, and creating driver confidence, is now essential as the 2030 deadline creeps ever closer. As a society, as an industry, as consumers and as drivers, it is vital we get this right for the good of us all.