UK Electric and Hybrid Cars Market Report 2024

The UK electric and hybrid car market is undergoing significant transformation, driven by technological innovations and surging sales, particularly of Battery Electric Vehicles (BEVs). Despite this growth, the market faces challenges including high purchase prices, limited charging infrastructure, and cautious consumer interest.

Indeed, half of respondents (49%) cite price as the biggest concern about owning an EV. Furthermore, our consumer research for this report also shows that almost 4 in 10 (37%) respondents express the availability of public charging is a concern.

In 2024, BEVs experienced a growth surge of 727% since 2019, underscoring a major shift in consumer preference within the automotive industry. However, EV sales, which accounted for a quarter of total car sales, are projected to fall short of government targets.

Additionally, while interest in purchasing electric or hybrid cars has declined to 50% in 2024, down from 53% in 2023, 54% in 2022, and 58% in 2021, the used EV market is gaining traction due to increased availability and affordability. As such, a significant 36% are showing interest in second-hand or used options.

This report looks at the following areas:

The market is evolving rapidly driven by innovative new models and cutting-edge technologies. These advancements have significantly contributed to a rise in sales.

Utku Tansel, Senior Retail Analyst

Market Definitions

Five types of hybrid and electric car are included in this review:

• Hybrid Vehicle or HV, combining an electric motor with a traditional fuel such as petrol or diesel. The electric motor is charged using the motion of the car and will typically kick in at low speeds.
• Battery Electric Vehicle or B-EV, a vehicle powered, in part or in full, by an electric motor and battery that can be plugged into the mains or a charging point.
• Plug-in Hybrid Electric Vehicle or PH-EV, a vehicle with a battery and an internal combustion engine (petrol, diesel etc). Power from the battery is supplemented with power from the internal combustion engine. Once the charge of the battery is exhausted the vehicle operates as a hybrid. The battery can be plugged into the mains or a charging point.

• Range Extended Electric Vehicle or RE-EV, a vehicle powered by a battery with an internal combustion engine-powered generator on board. Once the charge of the battery is exhausted the internal combustion engine takes over. The battery can be plugged into the mains or a charging point or charged by the internal combustion engine.
• Fuel Cell Electric Vehicle or FC-EV, a vehicle that uses hydrogen gas or another product as a fuel, and which is stored in a compact, strong, but lightweight pressure tank. Power is generated by the fuel cell stack and is used to drive the FC-EV’s electric motor, with additional power supplied when needed from a secondary battery.

Within the hybrid and electric car market Mintel identifies a segment called ULEVs (Ultra-Low Emission Vehicles). ULEVs have traditionally been defined as cars or vans with tailpipe CO₂ (Carbon Dioxide) emissions of 75g/km or less. This definition was changed by the UK government for the purpose of its plug-in car grant to less than 50g/km of CO₂ in October 2018.