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Electric & Hybrid Cars - UK - December 2018

“Electric and hybrid cars are seeing strong sales. Led by hybrids, the market is benefiting from an ever-growing number of models with considerable further investment from manufacturers planned for this sector of the car market. While Mintel’s research suggests that acceptance of these cars is growing, there remain a number of issues that need to be addressed.”

– Neil Mason, Head of Retail Research

This report examines the following issues:

  • Electric and hybrid cars are becoming mainstream 
  • Location isn’t a worry for those interested in buying electric or hybrid
  • Women remain a major challenge for the market

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Hybrid and electric sales see strong growth with expansion set to continue
              • Figure 1: Hybrid and electric new car registrations (Great Britain), by volume*, 2013-23
            • Hybrid cars dominate the market
              • Figure 2: Hybrid and electric car new registrations by type (Great Britain), by volume*, 2013-18
            • Hybrid and electric cars account for 1.5% of the car parc in 2018
              • Figure 3: Hybrid and electric vehicle car parc (Great Britain), by volume*, 2013-18
            • Franchised dealers dominate sales
              • Figure 4: Sales of new and used hybrid and electric cars, by channel, 2017
            • Grants for hybrid and electric cars slashed in October 2018
              • Innovations see growth in partnerships between car manufacturers
                • Companies and brands
                  • Mitsubishi, BMW and Nissan currently dominate the market
                    • Figure 5: ULEV manufacturer share, Q2 2017 and Q2 2018
                  • Promotional investment reached £38 million in 2016
                    • Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2013-17
                  • The consumer
                    • Traditional cars dominate the market
                      • Figure 7: Vehicle ownership, September 2018
                    • The market support cars of different ages
                      • Figure 8: Age of car owned, September 2018
                    • Shopping is the most important use for a car
                      • Figure 9: Main uses for a car, September 2018
                    • Sizeable minority are interested in owning a hybrid or electric car
                      • Figure 10: Interest in purchasing a hybrid/electric car, September 2018
                    • Hybrids are the most popular type of vehicle for purchasers
                      • Figure 11: Interest in type of hybrid/electric car, September 2018
                    • Websites dominate when it comes to information
                      • Figure 12: Sources of information on hybrid/electric cars, September 2018
                    • Costs and charging dominate worries
                      • Figure 13: Concerns about hybrid/electric cars, September 2018
                    • Charging is a concern for many
                      • Figure 14: Attitudes towards hybrid/electric cars, September 2018
                    • What we think
                    • Issues and Insights

                      • Electric and hybrid cars are becoming mainstream
                        • The facts
                          • The implications
                            • Location isn’t a worry for those interested in buying electric or hybrid
                              • The facts
                                • The implications
                                  • Women remain a major challenge for the market
                                    • The facts
                                      • The implications
                                      • The Market – What You Need to Know

                                        • Electric and hybrid car sales are recording strong growth
                                          • Hybrid cars dominate the market
                                            • South East England is a major market for low-emission cars
                                              • Franchised dealers dominate the market
                                                • Wider car market is not performing as well
                                                  • Mixed messages when it comes to government support for the sector
                                                  • Market Size and Forecast

                                                    • Electric and hybrid car sales become a realistic alternative
                                                      • Figure 15: Hybrid and electric new car registrations (Great Britain), by volume, 2013-23
                                                      • Figure 16: Hybrid and electric new car registrations (Great Britain), by volume, 2013-23
                                                    • Hybrids dominate although electric cars are the more dynamic market
                                                      • Figure 17: Hybrid and electric car new registrations by type (Great Britain), by volume, 2013-18
                                                    • Forecast methodology
                                                    • Market Segmentation

                                                      • South East England is a major market for low-emission cars
                                                        • Figure 18: ULEV * car registrations (United Kingdom), by type and regional share, 2018 Q2
                                                      • PH-EVs have been the driving force in growing ULEV sales
                                                        • Figure 19: ULEV sales (Great Britain), by volume, 2013-18
                                                      • Hybrid and electric cars surpass 1.5% of the car parc in 2017
                                                        • Figure 20: Hybrid and electric vehicle car parc (Great Britain), by volume, 2013-18
                                                      • Hybrid electric vehicles dominate this market
                                                        • Figure 21: Hybrid and electric vehicle car parc (Great Britain), by volume, 2013-18
                                                    • Channels to Market

                                                      • Franchised dealers dominate despite independents growing market share
                                                        • Figure 22: Sales of new and used electric and hybrid cars, by channel, 2013-17
                                                      • The internet remains a marginal sales channel
                                                        • Figure 23: Car advertisements, by fuel type (ebay.co.uk), 2016 and 2018
                                                    • Market Drivers

                                                      • Car ownership remains popular…
                                                        • Figure 24: Number of licensed cars (Great Britain), million units, 1995-2017
                                                      • …despite new and used sales showing signs of decline
                                                        • Figure 25: New and used car market volumes, 2013-18
                                                      • Petrol and diesel cars account for the majority of vehicles in ownership
                                                        • Figure 26: Number of licensed cars (Great Britain), million units, 2013-18
                                                      • Growing sales for low-carbon cars illustrate the shift within the market
                                                        • Figure 27: Number of licensed cars (Great Britain) 1-100g/km CO2, 2007-17
                                                      • Number of ULEV models more than doubles between 2014 and 2017
                                                        • Figure 28: Development of ULEV models, 2013-17
                                                      • Number of public EV chargers passes 14,000 by 2017
                                                        • Figure 29: Number of charging locations and connectors, 2013-17
                                                      • Faster connectors are increasingly available
                                                        • Figure 30: Developments in connector speed, 2013-17
                                                      • High prices are a feature of the market…
                                                        • Figure 31: On-the-road prices for the bestselling ULEVs (Q2 2018), November 2018
                                                      • …although rising motoring costs should help this sector
                                                        • Figure 32: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2013-17
                                                      • Bans on using petrol and diesel vehicles announced within London
                                                        • Increase in second car ownership offers opportunities
                                                          • Figure 33: Percentage of households with car availability, England, 2007-17
                                                      • Regulatory and Legislative Changes

                                                        • Office for Low Emission Vehicles
                                                          • Plug-in car grant support is scaled back
                                                            • Policy commitments
                                                              • Recent announcements
                                                                • Funding for hydrogen-powered vehicles and infrastructure (March 2017)
                                                                  • Vehicle to grid innovations (July 2017)
                                                                    • Additional support for low-emission technologies (September 2018)
                                                                      • Changes to the Plug-in car grant (October 2018)
                                                                      • Companies and Brands – What You Need to Know

                                                                        • Mitsubishi, BMW and Nissan lead the market
                                                                          • Co-operation is a feature amongst automotive manufacturers
                                                                            • Toyota dominates the market in terms of advertising
                                                                            • Market Share

                                                                              • Small number of manufacturers dominate the market
                                                                                • Figure 34: ULEV manufacturer share, Q2 2017 and Q2 2018
                                                                              • Outlander PHEV is the bestselling model
                                                                                • Figure 35: Top 10 ULEV model sales, by registration, Q2 2018
                                                                              • A third of PH-EV sales are Mitsubishi’s Outlander
                                                                                • Figure 36: Top 10 plug-in hybrid electric model sales, by registration, Q2 2018
                                                                              • Nissan’s Leaf dominates the electric segment
                                                                                • Figure 37: Top 10 electric model sales, by registration, Q2 2018
                                                                              • Limited line-up in the fuel cell market
                                                                              • Launch Activity and Innovation

                                                                                • Hyundai and Kia explore solar charging
                                                                                  • Audi and Hyundai invest in fuel cell technologies
                                                                                    • OVO launches vehicle-to-grid and Smart chargers
                                                                                      • Urban Electric announces retractable charging point
                                                                                        • Figure 38: UEone pop-up charger, November 2018
                                                                                    • Advertising and Marketing Activity

                                                                                      • Promotional investment appears to have peaked in 2016
                                                                                        • Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2013-18
                                                                                      • Television benefits from resurgent interest
                                                                                        • Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2013-17
                                                                                      • Toyota ups expenditure in 2017
                                                                                        • Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2013-17
                                                                                      • Launch of hybrid C-HR moves Toyota into first place
                                                                                        • Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by brand, 2013-17
                                                                                      • Nielsen Ad Intel coverage
                                                                                      • The Consumer – What You Need to Know

                                                                                        • Cars dominate the market
                                                                                          • Over a fifth of cars are 10 years or older
                                                                                            • Shopping is the most important use for a car
                                                                                              • Young adults and wealthy are important potential markets for hybrid/electric cars
                                                                                                • Traditional hybrid cars are the most popular choice
                                                                                                  • The internet dominates as a search tool
                                                                                                    • Purchase price and accessibility to charging points are key concerns
                                                                                                      • Restrictions imposed by charging an electric car are a concern for many
                                                                                                      • Vehicle Ownership

                                                                                                        • Cars dominate the vehicle market
                                                                                                          • Figure 43: Vehicle ownership, September 2018
                                                                                                        • Standard cars are popular with older, middle-income consumers and those in rural areas
                                                                                                          • Hybrid and electric cars appeal to the young and wealthy…
                                                                                                            • …as do other types of vehicle
                                                                                                            • Age of Car Owned

                                                                                                              • Despite 22% of cars being over 10 years old, younger cars are more prevalent overall
                                                                                                                • Figure 44: Age of car owned, September 2018
                                                                                                              • Age is an important factor when it comes to age of car owned
                                                                                                                • Men and women record differences in age of car owned
                                                                                                                  • Income and socio-economic status impact strongly on age of car owned
                                                                                                                    • Newer cars account for a growing share of vehicles
                                                                                                                      • Figure 45: Age of car driven, 2014-18
                                                                                                                  • Main Uses for a Car

                                                                                                                    • Shopping is the most important use for a car
                                                                                                                      • Figure 46: Main uses for a car, September 2018
                                                                                                                    • Older adults record broader uses for their car
                                                                                                                      • Income and socio-economic status also affect car use
                                                                                                                        • Hybrid/electric car owners record high use of their vehicle for business purposes
                                                                                                                        • Interest in Purchasing a Hybrid/Electric Car

                                                                                                                          • Sizeable minority are interested in owning hybrid or electric cars
                                                                                                                            • Figure 47: Interest in purchasing a hybrid/electric car, September 2018
                                                                                                                          • Young adults record the strongest interest
                                                                                                                            • Those in the wealthiest socio-economic group are also significant
                                                                                                                              • City dwellers and those in London are a target market
                                                                                                                                • Owners of younger cars are more likely to be interested in hybrid/electric vehicles
                                                                                                                                  • Drivers on the school run are a likely target market
                                                                                                                                    • Interest in owning a hybrid/electric car is strengthening
                                                                                                                                      • Figure 48: Interest in purchasing a hybrid/electric car, 2016 and 2018
                                                                                                                                  • Interest in Type of Hybrid/Electric Car

                                                                                                                                    • Hybrids are the most popular choice
                                                                                                                                      • Figure 49: Interest in type of hybrid/electric car, September 2018
                                                                                                                                    • Men are important buyers
                                                                                                                                      • Women record especially low interest in certain types of car
                                                                                                                                        • Location isn’t a factor for those with an interest in purchasing hybrid/electric
                                                                                                                                        • Sources of Information on Hybrid/Electric Cars

                                                                                                                                          • Specialist motor websites lead when it comes to information
                                                                                                                                            • Figure 50: Sources of information on hybrid/electric cars, September 2018
                                                                                                                                          • Young and old seek out different channels
                                                                                                                                            • Older men favour the internet
                                                                                                                                              • Manufacturer and dealer communication is important for those with the newest cars
                                                                                                                                                • Internet is growing in importance
                                                                                                                                                  • Figure 51: Interest in purchasing a hybrid/electric car, 2016 and 2018
                                                                                                                                              • Concerns about Hybrid/Electric Cars

                                                                                                                                                • Costs and charging dominate worries
                                                                                                                                                  • Figure 52: Concerns about hybrid/electric cars, September 2018
                                                                                                                                                • Need to charge is a greater concern for women
                                                                                                                                                  • Young adults have more general concerns about hybrid/electric cars
                                                                                                                                                    • Londoners appear satisfied on some issues
                                                                                                                                                      • Access to charging points of concern to shoppers
                                                                                                                                                        • Biggest concerns about owning a hybrid/electric car – CHAID analysis
                                                                                                                                                          • Older and affluent car owners most concerned about charging
                                                                                                                                                            • Figure 53: Electric and hybrid Cars – CHAID – Tree output, September 2018
                                                                                                                                                            • Figure 54: Electric and hybrid Cars – CHAID – Table output, September 2018
                                                                                                                                                        • Attitudes towards Hybrid/Electric Cars

                                                                                                                                                          • Charging is a leading concern when it comes to electric cars
                                                                                                                                                            • Figure 55: Attitudes towards hybrid/electric cars, September 2018
                                                                                                                                                          • Older adults need convincing about viability of electric cars
                                                                                                                                                            • Families more likely to view electric cars as secondary vehicles
                                                                                                                                                              • City dwellers have technology concerns
                                                                                                                                                                • Concerns about the environment are important for hybrid/electric owners
                                                                                                                                                                  • Those using their car for business hold some of the strongest opinions
                                                                                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                    • Data sources
                                                                                                                                                                      • Exclusions
                                                                                                                                                                        • Abbreviations
                                                                                                                                                                          • Consumer research methodology
                                                                                                                                                                          • Appendix – Market Size and Forecast

                                                                                                                                                                            • Market sizing and segment performance
                                                                                                                                                                              • Forecast methodology
                                                                                                                                                                                • Forecast data
                                                                                                                                                                                  • Figure 56: Forecast of hybrid and electric new car registrations (Great Britain) – Best- and worst-case scenarios, 2018-23

                                                                                                                                                                              Electric & Hybrid Cars - UK - December 2018

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