2025
9
UK Electric and Hybrid Cars Market Report 2025
2025-12-18T14:01:22+00:00
REPFE547C0D_7592_4B87_9F76_696C26820749
2195
189804
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Report
en_GB
The market experiences significant growth, with sales reaching record heights, while diesel/petrol gradually are being phased out. Demand drivers include high fuel prices, revived purchase grants, stricter ZEV mandate and…
UK
Automotive
simple

UK Electric and Hybrid Cars Market Report 2025

"The market is expanding fast, but high costs and limited charging network remain key challenges. Success relies on boosting consumer confidence and enhancing charging reliability."

Utku Tansel, Senior Retail Analyst

Utku Tansel, Senior Retail Analyst

UK Electric and Hybrid Car Industry – Trends and Insights

  • The UK electric car market experiences significant growth, with sales reaching record heights, while diesel/petrol gradually are being phased out. As government policies tighten, with a target of 100% zero-emission vehicles by 2035, the market is set for transformation.
  • Consumer interest is surging, with 54% considering purchasing an electric/hybrid car – with a stark age split (81% 17-34 vs 61% 35-54 vs 32% 55+) – in 2025.
  • Yet, barriers persist, with costs deterring 49%. Charging logistics, charge-time anxiety, and technical doubts are some other concerns. The industry’s thrust into innovation, i.e. ultra-fast and wireless charging tech, presents a promising avenue for growth.
  • The biggest threat remains consumer confidence, with concerns over charging reliability impacting purchase decisions. Nonetheless, upcoming incentives/technological advancements offer a compelling case for the market’s robust future.
  • To unlock mass adoption, a strategic imperative emerges for brands: simultaneously reduce the total cost of ownership, expand/enhance charging convenience, and focus on customer engagement.

This Report Looks at the Following Areas:

  • The rapid evolution of the electric and hybrid car market, examining innovative models, technologies, and consumer purchase intentions and interest across different types.
  • Consumer attitudes and behaviours regarding charging infrastructure.
  • Strategic recommendations for market players to achieve success, focusing on building trust and confidence, and leveraging innovative campaigns to highlight technological advancements and environmental impact.
  • Major barriers to adoption, such as high costs, inadequate charging infrastructure, and concerns about public charging station reliability, which impact consumer confidence.
  • Future prospects driven by changing consumer attitudes towards electric and hybrid vehicles, alongside solutions designed to alleviate range anxiety.
  • Projected performance over the next five years, as well as the impact of evolving government policies and incentives, including recent changes like the extension of hybrid car sales to 2035.
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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for Electric & Hybrid Cars
    • Opportunities
    • Invest in reliable charging infrastructure
    • Educate and engage consumers
    • Harness technological advancements
  2. THE MARKET

    • Snapshot – market size and forecast
    • Persistent inflation strains household budgets
    • Graph 1: CPI inflation rate, 2021-25
    • Consumer confidence: a divided outlook
    • Graph 2: consumers’ financial confidence over the next year or so, 2025
    • UK’s road to zero emissions: new rules, deadlines, and costs for EV owners
    • Fuel prices ease, still above pandemic lows
    • Graph 3: unleaded petrol and diesel pump prices, 2021-25
    • Go green for less: UK government launches £650m electric car grant scheme
    • Market size and forecast of electric and hybrid cars
    • Shifting gears: the future of EVs and tech-savvy buyers
    • The UK’s electric/hybrid revolution: charging ahead
    • Graph 4: market size for electric and hybrid cars (new registrations), units, 2019-25
    • Diesel/petrol gradually being phased out
    • Graph 5: new car registrations, by type, % of total, 2019, 2023, and 2024
    • Graph 6: hybrid, plug-in hybrid and battery electric new car registrations, by type, units, 2019 vs 2024
    • Tesla continues to reign supreme
    • Graph 7: top 10 electric and hybrid model sales (licensed cars), Q2 2025 vs Q2 2023
  3. THE CONSUMER

    • Purchasing a hybrid/electric car
    • Market gets a welcome boost from renewed interest
    • Graph 8: interest in purchasing a hybrid/electric car, 2024 vs 2025
    • How to win over the older demographics
    • Graph 9: interest in purchasing a hybrid/electric car, by age, 2025
    • Engaging younger cohort: creative strategies for promoting electric/hybrid cars
    • Considerable demand for new hybrid/electric cars
    • Preference towards new models gains traction
    • Graph 10: preference between new and used when purchasing a hybrid/electric car, 2023-25
    • Interest in type of hybrid/electric car
    • Buyers still hesitate to ditch petrol and diesel completely
    • Graph 11: interest in type of hybrid/electric car, 2024 and 2025
    • Debunking EV myths & driving consumer choice
    • Charging an electric car
    • EV charging: convenience is everything
    • Convenience is king for EV charging
    • Graph 12: charging an electric car, 2024 and 2025
    • The UK’s EV charging revolution: big opportunities
    • EV lounge café pods
    • Charging up the customer experience
    • Barriers to going electric
    • Price remains the biggest barrier to electric car owneship
    • Cost: the ultimate barrier
    • The price tag problem: why EVs aren’t mainstream (yet)
    • Graph 13: concerns about owning an electric car, 2024 and 2025
    • Tech’s edge: breaking adoption barriers
    • High interest in electric car and smart charging integration, and range optimisation
    • Building EV trust: peer-to-peer solutions for technical doubts
    • EVs: key areas for consumer adoption
    • Attitudes towards hybrid and electric cars
    • What drives the electric car market?
    • More is needed to deliver convenience
    • Graph 14: attitudes towards hybrid and electric cars, 2025
    • Sparking confidence: overcoming EV charging doubts
    • How EV brands can win over skeptical consumers
    • Too many choices? How to stand out in the EV market
    • The multi-generational marketing sweet spot
    • Graph 15: attitudes – “Growing concerns about pollutants from cars makes owning a hybrid/electric car more attractive”, by age, 2025
    • Driving innovation: how tech is powering the appeal of electric/hybrid cars
    • Graph 16: attitudes – “The advanced technology in electric/hybrid cars makes me more appealing to buy than standard cars”, by age, 2025
  4. INNOVATION AND MARKETING TRENDS

    • Longer journeys, shorter charges
    • Porsche introduces wireless charging – power up like a smartphone
    • Zaptec and British Gas unveil first tariff for apartment dwellers
    • Nissan LEAF third generation
    • Mercedes-Benz plugs into the future
    • Duracell enters UK EV charging market with ultra fast network
    • Dacia Hipster concept: the ultra-compact EV with room for four
    • Volkswagen’s “ID Promise”: return your EV if you’re not convinced
    • The new all- electric Mercedes-Benz CLA: the next-level innovation
    • The backseat revolution: how BMW i7 and Tesla are redefining in-car entertainment
    • Tesla’s Diner: a recipe for EV charging success?
    • Advertising and marketing activity
    • Electric BMW iX3 highlights heritage in its campaign
    • Vauxhall electrifies 2025 Campaign Media Awards with bold EV campaigns
    • Volkswagen’s ad takes you on an electric road trip from the UK to Amsterdam
    • The Audi A6 Avant e-tron showcases its customizable features
  5. APPENDIX

    • Market definition
    • Exclusions
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Market forecast and prediction intervals (volume)
    • The consumer
    • Consumer research questions
    • Consumer research methodology – EMEA
    • Other data source methodologies
    • Data sources
    • Mintel Spark
    • Abbreviations
    • Abbreviations and terms

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