10 March 2025
More needs to be done to ramp up EV adoption, according to a new AA study* The Government’s ban on the sale of new petrol and diesel cars from 2030 may change the supply side of car production but does little to stimulate demand from drivers.
The assumption has been that demand for EVs will follow supply which is influenced by the government’s zero emission vehicle (ZEV) mandate and that the market will find its own path to equilibrium.
However, demand for EVs from drivers has not met the supply which is a problem for both car manufacturers and government ambitions. AA research finds many drivers have been left behind in this process. Understanding their views is key to unlocking progress.
The AA understands the vital importance of the EV transition and the urgency was made even clearer in the recent Climate Change Committee Report** advocating 80% of cars should be electric by 2040.
The AA study finds that affordability of EVs is vital and as a majority of drivers buy used cars, a healthy second hand car market is essential. The current EV system to support drivers is not well-developed and this is damaging EV owner advocacy even from some of the early adopters.
The AA research*** shows very diverse driver views with enthusiasm at one end and total rejection at the other. This can be divided into four groups:
Rejectors: The 22% who totally reject EVs and say they will never get one.
‘I never want an EV.’
Doubters: Some 20% of drivers who are neutral or unlikely get an EV as their next car and are less likely to get one in the future.
‘I will stick with my petrol/diesel car as long as I can.’
Potentials: The 52% of drivers who claim to be likely/very likely to get an EV as their next car in the next five years or after that.
‘I’m worried about price and range.’
Adopters: The 7% who already own or drive an EV or have driven one in the past.
‘Improvements in the experience are still needed’
"Our message to government is more needs to be done to make EVs accessible for everyone."
Different approaches and incentives are needed to target these groups. Some of the negative views may have been influenced by misinformation but people are confused by the transition:
- Many drivers don’t appreciate that as the ban nears, fewer and fewer internal combustion engine (ICE) cars will be available for sale
- 7% think the sale of all petrol and diesel cars including used cars will be banned
- One third think they can get a manual EV despite all EVs being automatic
- 73% of ICE drivers have no experience of EVs at all
The AA is uniquely placed to address the challenges faced by drivers across the EV life-cycle and to support government with the transition. The AA report, based on extensive data and research, has been sent to the Transport Secretary and Energy and Climate Change Secretary, and highlights the need for more support and better information to encourage EV uptake.
Key Findings:
- EV Breakdown Rates: AA roadside callout data shows that running out of charge is reducing and on a similar scale to those than running out of fuel. In 2024, only 1.85% of all EV breakdowns were due to running out of charge compared to approximately 1% of ICE vehicles running out of fuel.
- Driver Sentiments: Even the Adopters are cautious in their recommendations and recognise that EVs are not for everyone yet.
- Cost Barriers: The average cost of a new EV in 2024 was £59,216, compared to £46,991 for petrol vehicles but prices are coming down. EVs make up only 2% of the second-hand car market, though this segment is seeing significant growth, up 63% in 2024.
- Government Support: Qualitative feedback from EV drivers indicates a feeling of abandonment, as they navigate complex and fragmented infrastructure with little help from the government, which is mandating the change.
- Second-Hand Market: The average value of a used EV in October 2023 was £32,203, compared to £16,315 for petrol vehicles. The British Vehicle Rental and Leasing Association (BVRLA) states there has been a 60% decline in used EV prices since 2022.
- Charging Infrastructure: 40% of drivers do not have access to home charging. Additionally, 72% of drivers cite ‘inconvenience’ as a major disadvantage of EVs.
AA's Recommendations:
- EV Drive UK Public Awareness Campaign: The AA proposes a coordinated public awareness campaign led by government and industry to address the doubts and needs of different driver segments. This campaign should provide accurate and impartial information to help drivers make informed decisions about EVs.
- Lower Costs: The government should identify targeted incentives to make EVs more accessible for everyone. Targeted support for drivers in the form of loans or tax breaks for the car and home charging would help. Reducing VAT (20%) on public chargers to match VAT (5%) on home chargers would make EV access more equitable.
- Boost Second-Hand Market: The AA supports the government's proposal for battery health passports to alleviate concerns about the quality of used EVs. This initiative could help improve confidence in the second-hand market.
- Allow Plug-In Hybrids: The AA suggests allowing new plug-in hybrids between 2030 and 2035 as a stepping stone for drivers who are hesitant to switch to full EVs. Even the ‘rejectors’ would consider hybrids.
- Improve Charging Visibility: Policymakers should reduce red tape to allow signing of charging infrastructure to enhance the driver experience and perception of EVs. See AA background.
- Enhance the secondary aspects of EV driving: Drivers were unaware of the support available to them to maintain, repair, or insure EVs. Addressing issues such as resale value, insurance costs and maintenance delays is crucial to improving the overall EV ownership experience.
Jakob Pfaudler, AA CEO, said: “From opening the first filling station and erecting the first road signs, The AA has always led on motoring innovation.
“Our message to government is more needs to be done to make EVs accessible for everyone. Generally drivers are hesitant but most are not hostile to the change. The AA is in a unique position to help as we deal with drivers throughout the driving life-cycle from learning to drive, buying, insuring, and repairing their cars.
“Our research shows many people are confused by the transition which is not surprising as the main catalyst for change, the ZEV mandate, only governs supply but does little to encourage demand for EVs.
“The ambitious goal of the Climate Change Committee that 80% of cars and 74% of vans should be electric by 2040 shows how much needs to be done to get there.
“The AA, as a trusted brand with 14m members, is in a great position to help government and drivers make this transition which is essential if we are to reach our climate goals. As a starting point, a government-backed awareness campaign, a healthy used EV market, and some targeted incentives are needed to charge up the transition.”
*AA Viewpoint Report ‘What do drivers want from the EV transition?’ and summary of research findings will be able to be accessed HERE
**https://www.theccc.org.uk/publication/the-seventh-carbon-budget/
*** The research supporting the report has been collated from The AA's operational data, collected up to 31 January 2025, The AA Yonder online poll of 14,074 drivers conducted between the 14th to 21st January 2025 and our quantitative survey in field 25th October to 8th November 2024 and has been supplemented with qualitative research prior to and after this. Main sample was matched to ONS nationally representative samples for gender, age and location.