EV demand dips amid rising bills

Demand for electric vehicles is waning amid rising living costs and surging energy prices.

Data from Auto Trader found electric vehicles represented 27% of new car enquiries in June but has now dropped to just 19%.

Its Road to 2030 Report also found that year-on-year demand for used EVs is in decline for the first time since the pandemic, with a 12% slide in the past year. Fundamental barriers remain lack of choice and affordability, with five times fewer new electric models than ICE under £30,000.

Erin Baker, editorial director at Auto Trader, said: “Although current sales figures look positive, the rapid decline in consumer appetite for electric vehicles reveals the market is on thin ice where mass electric adoption is concerned. And with the forecast of new car electric sales reaching 50% being pushed back to 2027 the market faces a precarious combination of factors which could cause major potholes on the road to 2030 without further action from government and industry to encourage mass adoption.

“There are some positive signs with running costs still in EVs favour, and more affordable models in the pipeline, particularly those from Asia. But today’s slowdown in demand for EVs translate into lower sales as we enter 2023.”