The rapid acceleration in the electrification of the UK’s new car market is coinciding with fundamental changes in vehicle brand perceptions, and a mushrooming of public recharging infrastructure, according to new research published by 360 Media Group.
The second edition of the Sustainability Index, which tracks key trends in the electric vehicle marketplace, has identified how ultra-rapid (100+kW) chargers are dominating investment decisions. Data from our partner Zap-Map reveals that rapid and ultra-rapid chargers may only represent about 20% of chargers by number, but they account for 60% of the electricity capacity for EV charging.
At the other end of the charging speed spectrum, there is significant growth in the number of slow, on-street 3-5kW chargers, so-called lamppost chargers, although their distribution is far from even. Research by another of our partners, Field Dynamics, has found that the number of on-street chargers increased by 68% between April 2020 and April 2022, but coverage only expanded by 42%, with installations clustered together to reduce costs and increase visibility.
The disparity in nationwide coverage is even more stark, with London Boroughs achieving an average of nearly 60% coverage while Metropolitan councils average less than 14%. Part of this variance is due to a difference in strategy – some cities, such as Birmingham, have decided to pursue a policy of supporting local charging hubs rather than on-street chargers to support EV drivers who do not have space to park and charge off-street.
The availability of easily accessible on-street charging is a vital piece of the electrification puzzle for many fleets, especially those operating light commercial vehicles, given that around half of van drivers will not have access to off-street parking. Market research by 360 Media Group has found that only 17% of van drivers have on-street charging near their homes, and even where it is available, anecdotal evidence highlights awkward ‘conflicts’ with neighbours over hogging these chargers. Locating reliable, local charge points is increasingly important for fleets, and while various solutions are being developed, a lack of confidence in recharging opportunities remains a red line for many fleets.
The car market is finding it much easier to electrify, with the rock bottom benefit in kind tax for company cars smoothing over range and recharging inconvenience. Auto Trader data provided for the Sustainability Index reveals that EVs account for four in 10 of the most searched for cars in the first six months of this year, despite EVs being on average 35% more expensive than their ICE equivalents. Views of Tesla models on Auto Trader total more than double those of any other brand, and there are major shifts in other brand perceptions, too.
The proportion of new car buyers considering Hyundai, Kia and MG electric models who are from social grades A and B has risen to 36 per cent, 38 per cent and 31 per cent respectively, figures akin to premium German marques. These percentages drop to 14, 14 and nine per cent respectively for people from the same social groups considering these brands’ internal combustion engines vehicles. As the market matures, however, the price premium for EVs will come under pressure.
Acquisition cost and recharging infrastructure have overtaken range anxiety as barriers to EV uptake, and these attitudes will need to be addressed by vehicle manufacturers and leasing companies to protect the residual value of EVs as the volume of used plug-in cars increases. By 2025, more than half of all 0 to 1 year old cars offered for sale will be electric; by 2026 more than 50 per cent of all one-to-three year old cars will be electric; and by 2029, more than one-in- two three to five year old cars will be electric.
Used buyers are much less likely to benefit from the BIK tax advantages of EVs, and running cost savings may not offset the higher purchase price. Data from Cox Automotive, another Sustainability Index partner, indicates that the hundreds of thousands of lost sales during the pandemic will curtail the volumes of vehicles reaching the used car market over the next few years, which should protect residual values by ensuring that supply does not exceed demand.
Download the Sustainability Index Reports List | 360 Media Group (360mediagroupltd.com)