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Electric Vehicles in the UK: Challenges, Progress, and the Road Ahead

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Introduction


Electric vehicles (EVs) have dominated headlines over the past year. Although work has to be done to make the automotive market more sustainable – financially and environmentally – there are plenty of positives to take away from 2024.


The last year has certainly highlighted challenges that the EV market faces. Despite EVs reaching a record high of 31% of new car registrations last month and manufacturer discounts totalling over £4.5 billion in 2024, automakers still fell short of the government-mandated annual target of 22% EV sales. This target is set to increase to 28% in 2025, with the eventual target being EVs accounting for 80% of all car sales in 2030. In order to reach the mandated threshold next year, an EV market uplift of just under 50% will be required – a huge increase in EV sales when compared to 2024.


Nevertheless, 2024 has laid the foundations for an exciting year ahead, as the EV market continues to gain strong momentum across the UK. For the first time, the UK has narrowly overtaken Germany as Europe’s largest EV market, with a record 382,000 units registered last year. It is worth noting, however, that this statistic is referring to the quantity of units sold, and not the proportion of EVs in the market. Norway continues to hold its position as the world leader in EV adoption, with 89% of new cars sold in 2024 being fully electric. The country is on track to reach its goal of 100% EV sales by 2025, ten years earlier than other European countries and the United Kingdom. What is even more impressive is that just 12 years ago, in 2012, EVs accounted for only 2.8% of new car sales in Norway.


This journey sets a potent example for other countries pursuing similar transitions and proves that the transformation of the automotive sector is not just possible, but eminently achievable. The Norwegian government has driven this growth through a clever and supportive incentive system – EVs benefit from VAT exemptions, and have historically enjoyed advantages such as toll-free driving, free parking in public areas, and access to public transport lanes. The government further plans to increase taxes on new combustion engine vehicles from April 2025 onwards, further encouraging the transition to electric mobility.

 

Rising EV Adoption: A Nation on the Move


The UK's EV market experienced impressive growth in 2024, with Battery Electric Vehicle (BEV) registrations and Plug-in Hybrid Electric Vehicle (PHEV) registrations increasing by 21.4% and 18.3% year-on-year respectively. This surge reflects a growing confidence in EV technology and a market that is steadily transitioning away from traditional internal combustion engine vehicles. Petrol cars, despite holding a 51% market share, saw a 4.4% year-on-year decline in registrations, highlighting the gradual but undeniable shift towards cleaner alternatives.


The Society of Motor Manufacturers and Traders (SMMT) have determined that CO2 emitted from new cars has fallen by 6.2% year-on-year to an average of 102.1 g/km. Results from Avon Energy Partners' new EV Tracker, shown in the graph below, highlight the immense emission savings that EV owners receive. Assuming an average of 7,000 miles driven each year (in line with 2023 UK numbers) and the rather conservative assumption that EV owners charge their vehicles at home 50% of the time, the emissions payback period is just three years.


Corporate fleets in particular have been instrumental in driving EV growth. According to the Department for Transport, fleets accounted for 80% of PHEV and 83% of BEV registrations in the first half of 2024. Notably, 21% of all new company-owned cars during this period were electric, aligning with the government’s Zero Emission Vehicle (ZEV) mandate. Fleet registrations were the only market segment to grow, increasing by 12.9%, while private and business registrations fell by 9.1% and 4.2%, respectively.


Naomi Nye, Head of Sales at Drax Electric Vehicles, recently underscored the impacts of policy on fleet adoption:


“The ZEV mandate sets ambitious sales quotas for electric vans and cars. It’s a driving force behind the rapid pace of fleet electrification, compelling manufacturers to scale up their supply of electric light commercial vehicles and cars to meet demand and avoid penalties.” 


This policy-driven surge suggests that while corporate adoption is progressing well, further efforts are needed to stimulate private consumer uptake.


Infrastructure Expansion: Building the Foundation for Growth


A robust and accessible charging infrastructure is vital for sustaining EV adoption. In 2024, the UK’s public charging network expanded by nearly 40% to a national total of approximately 74,000 public charging points, with over 20,000 new chargers installed. This growth was significantly notable with regards to ultra-rapid chargers, with over 3,000 units installed – a significant 83% increase. These high-speed chargers are crucial for enabling longer journeys and supporting larger EVs like electric vans and heavy goods vehicles (HGVs). The UK government has set a target of 300,000 public charge points by 2030 in response to demands for a rapid expansion of existing charging infrastructure.


However, gaps in infrastructure persist, particularly in rural and remote regions. While urban centres such as London and Liverpool have benefited from increased on-street charging installations, up 72% in 2024, rural areas continue to lag behind. This uneven distribution risks leaving parts of the population behind in the EV transition.


Another factor to be considered is that of destination charging, installing charge points at hotels, shopping centres, and leisure facilities. At this point in time, there is a comparative paucity of destination charge points in the UK. Nye rightly identifies that this ‘represents an untapped market that could give businesses a competitive edge while enhancing EV accessibility across the country.’


Workplace charging infrastructure is showing promising growth. Drax’s Driving Change Report 2024 revealed that nearly half of UK employers have installed EV chargers on-site, with a third of respondents planning to expand capacity in the coming year. This trend may support employees who lack home-charging options and has the potential for businesses across any industry to cut back on some of their Scope 3 emissions.


Public-private collaboration is key to driving infrastructure expansion. The UK government has allocated significant funds, such as the £318 million Local Electric Vehicle Infrastructure (LEVI) fund and the £15 million On-Street Residential ChargePoint Scheme (ORCS), to accelerate charger deployment. However, Professor Peter Wells from Cardiff University warns of potential inequalities in access:


“So far, charge point installations are rather biased towards specific use patterns, excluding others…for those who want to use a small and efficient EV for daily runarounds, provision is woeful.”


To address these disparities, standardising planning processes and speeding up grid connections will be essential.


Policy and Regulation: Balancing Ambition with Market Realities


The UK’s ZEV mandate, requiring 22% of automaker sales to be EVs in 2024, a sum rising to 28% in 2025, has spurred rapid industry adaptation. Although BEVs captured a record 19.6% market share in 2024, automakers failed to meet mandated targets. Manufacturer discounts totalling £4.5 billion were necessary to drive sales – an unsustainable practice. Mike Hawes, Chief Executive of the SMMT, has warned that ‘The amount of money available to stimulate demand is going to be under severe pressure when manufacturers have very finite resources.’


With even stricter targets looming, the pressure on manufactures is steadily increasing. Stellantis, Vauxhall’s parent company, ceased van production in Luton after 120 years and cited EV regulation as a contributing factor. Similarly, Ford reduced its UK workforce due to slower-than-expected EV sales, with private consumer demand at a far lower level than they initially expected.


Following the ‘instantaneous’ slashing of EV subsidies by the German and French governments last year, leading to a marked decrease in EV sales (a 25% reduction in EV registrations in Germany alone), it is good to see that government flexibility may be on the horizon in the UK. The low tax rate on corporate registrations – 2% and set to rise by 1% per year for three years – has been one of the main drivers in the uptake of EVs in the UK. Transport Secretary Heidi Alexander has hinted at potential adjustments to the mandate, including extending hybrid sales through 2035, in order to balance economic concerns. However, from April 2025 EV owners will start to pay vehicle excise duty at a rate of £195 per year – this, although a small sum, is definitely a concern with the affordability of EVs being a major restrictor on private consumers. If one takes the Norwegian model as an example, collaboration between the government, manufacturers, and the public will clearly be essential in the net-zero transition of the automotive sector.


Clarity from policymakers will certainly be necessary – Ayvens, a subsidiary mobility company of Société Générale, found that unclear regulation was cited by 37% of fleet decision-makers as a limiting factor in their decarbonisation plans.


Private consumer demand for EVs remains sluggish and is possibly the biggest restrictor on the UK’s EV sector. Only 1 in 10 private consumers chose to buy an EV in 2024 when purchasing a new car – this level of demand was last seen during the COVID-19 pandemic when social distancing restrictions shut down the market for three months in 2020. Registrations by private buyers fell by 8.7% in 2024 when compared to the year prior. Petrol cars accounted for 61.0% of private purchases, highlighting the need for targeted incentives, and HEVs took second place with 16.0% of private purchases.

 

Public perception is gradually improving, though. The 2024 National Travel Attitudes Study found that 37% of respondents rated their EV knowledge as high, and 49% planned to purchase a BEV or PHEV as their next vehicle. Industry groups like ChargeUK continue to educate the public and highlight the benefits of switching to EVs, but further incentives and clearer information is needed to reassure private consumers and build momentum. An extremely positive statistic regarding EV technology acceptance has recently come to light through charging point tool Zapmap – apparently, only 3% of EV drivers would consider switching back to petrol- or diesel-powered vehicles.


Automotive marketing agency UpShift has recently conducted research which accurately pinpoints why private consumers are still hesitant to buy EVs – affordability. The median price for a new EV (not counting manufacturer discounts) is £51,000, a full 31% higher than that of new petrol or diesel models. Although ownership has surged by 58% since 2022, 56% of UK consumers think that EVs are too expensive. UpShift found that in 2024 there were 434,123 searches for EVs – queries for ‘cheap electric cars’ increased by 21%, whereas queries for ‘used electric cars’ and ‘second-hand electric cars’ have grown by 6% and 3% respectively.


Concerns about the cost of charging, in addition to upfront price, is also of concern to private consumers. The most-searched EV-related question in the UK, generating 72,000 searches annually, is ‘How much does it cost to charge an electric car’. Other popular searches such as ‘how long does it take to charge an electric car’ and ‘how much will electric car tax be in 2025’ clearly delineate the importance of clarity from policymakers in making EVs more accessible and appealing to the general public.


It is also worth noting that comparatively small private consumer demand in 2024 may be symptomatic of increasing financial hardship. The cost-of-living crisis has been ever-present and pervasive throughout the UK, and the idea that private consumers may not wish to spend money on their first EV because of an increasing financial burden is not outside the realms of possibility.


Fleet Electrification: Business-Led Sustainability


Corporate fleets are leading the charge in EV adoption. Research from Ayvens found that 47% of fleet operators reported positive business impacts from electrification, including reduced costs (49%), improved brand image (56%), and higher employee engagement and retention (56%).


Tim Laver, Chief Executive of Ayvens, has stressed the importance of consistent policy support:


“Government regulations are a significant factor that heavily influences fleets’ decarbonisation plans. Greater clarity is needed around this.”


Gilles Le Borgne, former head of engineering and an adviser at Renault, similarly contends that carmakers need ‘stability of public policy around electric vehicles’. He further stresses that the difference between 1,000 and 2,000 euros in support ‘can shift things one way or another’.


A considerable proportion of fleet operators are also integrating renewable energy solutions and investing in driver training to optimise their transition to Net Zero.


Innovations in Technology: Unlocking New Opportunities


Advancements in battery technology and expanded EV models are unlocking new opportunities. Nye also anticipates that 2025 will be a turning point for electric vans and HGVs, stating that ‘With new and more capable options entering the market and regulatory deadlines looming, adoption is set to accelerate’.


At this point in time, there are only a few hundred electric HGVs on UK roads, a miniscule proportion when one considers that the sector is dominated by over 400,000 diesel-powered trucks. Government-funded trials for zero-emission HGVs are helping to address operational challenges, bringing the logistics sector closer to sustainable solutions.


Research and development is continuing for electric HGVs in areas such as next-generation battery systems, hydrogen fuel cells, and lightweight vehicle materials to address the inherent challenges present in decarbonising heavy-duty vehicles. Next-generation battery systems appear to be the area with the most promise, as they offer faster charging times, higher energy density, and longer lifespans than lithium-ion batteries commonly used today.


The Road Ahead: Collaborative Solutions for a Sustainable Future


The journey to nationwide EV adoption demands collaboration. Bespoke strategies that address each organisation’s operational needs, supported by comprehensive services like vehicle selection and charge management, will be absolutely crucial. Long-term sustainability and immediate needs must be balanced.


Demand-side response (DSR) solutions, where EV fleets help stabilise the national grid by charging during off-peak hours, also represent untapped potential. For the UK’s energy grid to operate smoothly, electricity supply and demand must be balanced – because the grid operates at 50Hz, even a small fluctuation in frequency of 0.2% can cause major disruptions. With the increasing use of renewable energy, which depends on favourable weather conditions, maintaining this balance will be essential to ensure managed decarbonisation of the electricity grid.


Adam Hall, Director of Energy Services at Drax Electric Vehicles, contends that DSR solutions ‘will be the future of balancing supply and demand by optimising the use of electric assets.’ Because EV fleets are plugged in for extended periods, typically during low-demand times such as overnight, their predictable charging patterns could enhance grid stability while reducing fleet costs.


Conclusion: A Promising Path Forward


The UK’s transition to electric mobility is well underway, marked by considerable progress in EV adoption, infrastructure development, and public perception. These achievements lay a solid foundation for the future, but challenges such as infrastructure gaps, evolving policy landscapes, and private consumer hesitancy must be actively addressed.


Through sustained collaboration between government, industry, and consumers, alongside tailored strategies and technological innovation, the UK is well-positioned to overcome these hurdles. Initiatives like fleet electrification, advancements in battery technologies, and demand-side response solutions demonstrate the potential for EVs to transform both transportation and energy systems.


The road ahead may be challenging, but the opportunities are vast. By aligning ambitious climate policies with market realities, the UK can achieve its environmental goals whilst simultaneously driving economic growth. As we look to 2025 with optimism, the journey of the EV market will be one we navigate together, unlocking its full potential for a sustainable future.

 

References


Anonymous. ‘2025 Unwrapped: What’s ahead for the EV market in the new year’, Fleetworld (January 2025). 2025 Unwrapped: What’s ahead for the EV market in the new year


Ayvens. ‘Report: Sustainable mobility in the UK fleet sector’, Ayvens Insights (November 2024). 15192-ayvens-sustainable-mobility-report.pdf


Department for Transport. ‘National Travel Attitudes Study Wave 9: electric vehicles and charging’, Gov.uk (January 2024). National Travel Attitudes Study (NTAS) Wave 9: electric vehicles and charging - GOV.UK


Drax. Driving Change Report 2024 (February 2024). Driving change report - Free download | Drax


Inagaki, Kana. ‘European carmakers braced for tough 2025 despite ‘firework’ of launches’, Financial Times (January 2025). European carmakers braced for tough 2025 despite ‘firework’ of launches


Jervis, Tom. ‘EV charger numbers are growing rapidly but there’s one small problem’, Auto Express (January 2025). EV charger numbers are growing rapidly but there's one  small problem | Auto Express


Nicholson-Messmer, Elijah. ‘UK’s absurd £15,000 fine per car EV policy hurts automakers and buyers’, Autoblog (January 2025). UK's absurd £15,000 fine per car EV policy hurts automakers and buyers - Autoblog


Nye, Naomi. ‘Six considerations for a successful electrification journey’, Fleetworld (January 2025). Six considerations for a successful electrification journey


Nye, Naomi. ‘2024 key moments and what lies ahead for the HGV industry’, Drax Insights (January 2025). Key moments and what lies ahead for the HGV industry | Drax


Phoon, Michael. ‘Norway Leads The Charge With 89% EV Sales in 2024’, EV.com (January 2025). Norway Leads The Charge With 89% EV Sales In 2024 | EV.com


Reuters. ‘UK new car sales rise in 2024 but miss EV target, industry data shows’, Reuters (January 2025). UK new car sales rise in 2024 but miss EV target, industry data shows | Reuters


Roberts, Gareth. ‘Third of fleets slow electrification plans due to shifting policies’, FleetNews (January 2025). Third of fleets slow electrification plans due to shifting policies


Seymour, Tom. ‘UK customers ramp up EV research, despite affordability concerns’, AMOnline (January 2025). UK customers ramp up EV research, despite affordability concerns


Society of Motor Manufacturers and Traders. ‘Record EV market share but weak private demand frustrates ambition’, SMMT News (January 2025). Record EV market share but weak private demand frustrates ambition - SMMT


Wells, Peter. ‘As EV sales surge, the UK car industry might be reaching a turning point’, Tech Xplore (January 2025). As EV sales surge, the UK car industry might be reaching a turning point

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