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."
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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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
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
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
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
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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