2020
9
UK Electric and Hybrid Cars Market Report 2020
2021-01-19T03:02:08+00:00
OX989510
2195
132665
[{"name":"Electric and Hybrid","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive\/electric-hybrid-cars"}]
Report
en_GB
“Demand for new hybrid and electric cars is growing. Although currently a much smaller sector than cars powered by traditional petrol or diesel, sales are outstripping both of these established…

UK Electric and Hybrid Cars Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Electric and Hybrid and Cars market including the behaviours, preferences and habits of the consumer.

For what is expected to be a difficult year for the UK new car sector, the performance from the hybrid and electric sector of the market will be welcomed. Mintel estimates that new car sales in the sector will expand by 45.7% to 273,500 units compared to losses for the petrol and diesel sectors of 36.4% and 48.2% respectively.

Despite an inevitable impact on the hybrid and electric market, COVID-19 is not expected to have as great an impact on sales as it will the wider car market. Sales of hybrid and electric cars are set to rise from 187,869 units in 2019 to 273,500 units in 2020 compared with the overall car market which is expected to see sales drop back from 2.35 million units to 1.57 million units. Looking beyond 2020, while the wider car sector is set to begin to recover in 2021/22, helped by the December 2020 Brexit agreement between the UK and EU, growth is still expected to be modest. In contrast, the prospects for hybrid and electric cars are much more promising. The imposition of additional restrictions in December 2020 and national lockdown in January 2021, associated with the COVID-19 pandemic, are expected to have limited detrimental impact. Hybrid and electric sales are forecast to expand by 102.5% and 128% respectively between 2020 and 2022.

Quickly understand

  • The impact of COVID-19 on the hybrid and electric car market.
  • How COVID-19 and other factors will likely impact the market’s future prospects.
  • Trends in demand for particular hybrid and electric technologies.
  • Key drivers impacting on the market, in particular legislative trends, support for the sector as well as the wider impact of the relationship between the UK and EU from 2021.
  • The main channels used for the purchase of hybrid and electric cars.
  • Company and brand shares within specific segments of the market.
  • Consumer interest towards hybrid and electric cars as well as concerns.

Covered in this report

Types of hybrid or electric car included in this review: Hybrid Vehicle or HV, Battery Electric Vehicle or B-EV, Plug-in Hybrid Electric Vehicle or PH-EV, Range Extended Electric Vehicle or RE-EV and Fuel Cell Electric Vehicle or FC-EV’s.

Car brands included: Audi, Lexus, Toyota, Volkswagen, Mini, Honda, Vauxall, Toyota, Ford, Nissan, Hyundai, Mitsubishi, Volvo, Mg, Vauxhall, Kia Motors and more.

Expert analysis from a specialist in the field

Written by Neil Mason, a leading analyst in the Retail Research sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Demand for new hybrid and electric cars is growing. Although currently a much smaller sector than cars powered by traditional petrol or diesel, sales are outstripping both of these established markets. Based on our forecasts, potentially half of new cars could be hybrid, plug-in hybrid or 100% electrically powered by the middle of the coming decade.

Neil Mason
Retail Category Director

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Impact of the January lockdown and the vaccination rollout
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on hybrid and electric cars
      • Figure 1: Short, medium and long-term impact of COVID-19 on the hybrid and electric car market, December 2020
    • Market size
    • Hybrid and electric sales increase despite COVID-19
      • Figure 2: Hybrid and electric new car registrations (United Kingdom), by volume, 2015-25
    • Hybrids will dominate in the short to medium term
      • Figure 3: Hybrid and electric car new registrations, by type (United Kingdom), by volume, 2021-25
    • Plug-in hybrids dominate the ULEV market
      • Figure 4: ULEV licensed cars (United Kingdom), by volume, Q2 2020
    • Private and online sales expected to benefit from COVID-19
      • Figure 5: Sales of new and used electric and hybrid cars, by channel, 2020
    • Growth in range of models is a major boost for the market
      • Figure 6: Development of ULEV models, 2015-20
    • UK-EU agreement signals positive news for the wider car sector
    • Revised date for phasing out sale of petrol and diesel cars
    • Companies and brands
    • Market is dominated by a small number of manufacturers
      • Figure 7: Hybrid and electric manufacturer group share (licensed cars), Q2 2020
    • Innovations focus on improvements in hybrid and electric technology
    • Broadening of models helps boost advertising expenditure
      • Figure 8: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2015-19
    • The consumer
    • Growth in hybrid and electric car sales should boost ownership
      • Figure 9: Vehicle ownership, September 2020
    • Profile towards owning older cars may hamper market development
      • Figure 10: Age of car owned, September 2020
    • Commuting offers an important opportunity for the market
      • Figure 11: Main uses for a car, September 2020
    • Future prospects for the sector appear promising
      • Figure 12: Interest in purchasing a hybrid/electric car, September 2020
    • Most potential buyers appear in no rush
      • Figure 13: Interest in purchasing a hybrid/electric car, September 2020
    • More needs to be done to reduce worries about hybrid and electric technology
      • Figure 14: Interest in type of hybrid/electric car, September 2020
    • Investment in online communication should resonate well with buyers
      • Figure 15: Sources of information on hybrid/electric cars, September 2020
    • Worries about charging and vehicle price remain key concerns for potential owners
      • Figure 16: Concerns about hybrid/electric cars, September 2020
    • Addressing concerns of young adults should be a priority
      • Figure 17: Attitudes towards hybrid/electric cars, September 2020
  3. Issues and Insights

    • Hybrid sales set to benefit as wider car market is dented by COVID-19
    • 2030 target to ban new petrol and diesel cars won’t be met without further support
    • Key groups will be essential to drive forward mass-market appeal
  4. The Market – Key Takeaways

    • COVID-19 fails to dent demand for hybrid and electric cars
    • Slowdown for the UK economy unlikely to affect growth prospects…
    • …with UK government commitment set to continue to drive forward growth
    • ULEVs remain focused towards the South East
    • Online sales set to benefit from COVID-19
    • Number of ULEV models available is growing
  5. Market Size and Forecast

    • Hybrid and electric car market escapes any major impact from COVID-19
      • Figure 18: Short, medium and long-term impact of COVID-19 on the hybrid and electric car market, December 2020
    • Electric and hybrid cars are increasingly becoming mainstream
      • Figure 19: New car registrations (United Kingdom), % of total, 2015 and 2019
    • COVID-19 unlikely to have an impact on hybrid and electric sales…
    • … with Brexit agreement avoiding further potential difficulties
      • Figure 20: Hybrid and electric new car registrations (United Kingdom), by volume, 2015-25
      • Figure 21: Hybrid and electric new car registrations (United Kingdom), by volume, 2015-25
    • Demand for diesel cars collapses
      • Figure 22: New car registrations (United Kingdom), by volume, 2015-20
    • Demand for battery electric cars accelerates…
      • Figure 23: Hybrid and electric car new registrations, by type (United Kingdom), by volume, 2015-20
    • …although it will be hybrids that will dominate the period 2021-25
      • Figure 24: Hybrid and electric car new registrations, by type (United Kingdom), by volume, 2021-25
    • Market drivers and assumptions
      • Figure 25: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 25 November 2020)
    • Learnings from the last recession
      • Figure 26: Hybrid and electric new car registrations (Great Britain), by volume, 2007-12
    • Forecast methodology
  6. Market Segmentation

    • 3% of the car parc will comprise of hybrid and electric cars in 2020
      • Figure 27: Hybrid and electric vehicle car parc (United Kingdom), by volume, 2015-20
    • Majority of vehicles in use are hybrid
      • Figure 28: Hybrid and electric vehicle car parc (United Kingdom), by volume, 2015-20
    • Over a third of ULEV cars licensed are in London and the South East
      • Figure 29: ULEV licensing (United Kingdom), by type and regional share, Q2 2020
    • PH-EVs dominate licensed ULEV cars
      • Figure 30: ULEV licensed cars (United Kingdom), by volume, Q4 2015-Q2 2020
  7. Channels to Market

    • Dealers are the main channel for hybrid and electric cars
    • COVID-19 is set to raise the profile of private sellers and specialists online
      • Figure 31: Sales of new and used electric and hybrid cars, by channel, 2015-20
    • Wider profile of online has until recently been limited
      • Figure 32: Car advertisements in the UK, by fuel type (ebay.co.uk), 2016-20
    • Recent investment suggests that its profile is about to strengthen
  8. Market Drivers

    • COVID-19 restrictions
    • Car parc has expanded by over 30% since 2000
      • Figure 33: Number of licensed cars (Great Britain), million units, 2000-19
    • Consumer confidence hit during 2020 by COVID-19…
      • Figure 34: Consumer financial confidence, January 2015-November 2020
    • …although Brexit agreement avoids further potential difficulties
    • Pandemic set to depress new and used car sales during 2020
      • Figure 35: New and used car market volumes (United Kingdom), million units, 2015-20
    • Hybrid and other vehicles are slowly growing their presence
      • Figure 36: Number of licensed cars (Great Britain), million units, 2015-20
    • Poor new car sales hits growth of low-emission vehicles
      • Figure 37: Number of licensed cars (Great Britain) 1-100g/km CO2, 2009-19
    • Growth in the number of ULEV models is accelerating
      • Figure 38: Development of ULEV models, 2015-20
    • Charging network continues to expand…
      • Figure 39: Number of charging locations and connectors, 2015-20
    • …as does its speed
      • Figure 40: Developments in connector speed, 2015-20
    • New hybrid and electric cars remain expensive
      • Figure 41: On-the-road prices for the bestselling ULEVs (Q2 2020), November 2020
    • Extension of clean air zones across the UK
    • Cost pressures for car owners have moderated recently
      • Figure 42: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2015-19
    • Growing percentage of households own two or more vehicles
      • Figure 43: Percentage of households with car availability, England, 2009-19
  9. Regulatory and Legislative Changes

    • Office for Low Emission Vehicles
    • Policy commitments
    • 2015 and 2018 announcements towards zero emissions
    • 2020 and changes to the phasing out of conventional fuels
    • Plug-in grants
    • Chargepoints
    • Private
    • Public
  10. Companies and Brands – Key Takeaways

    • Nissan-Renault-Mitsubishi Alliance dominates the UK market
    • Innovations focus on technology and accessibility
    • Promotional support is increasingly directed towards electric cars
  11. Market Share

    • Nissan-Renault-Mitsubishi Alliance cars account for nearly a third of the market
      • Figure 44: Hybrid and electric manufacturer group share (licensed cars), Q2 2020
    • BMW consolidates its position as the biggest brand in the market
      • Figure 45: Hybrid and electric brand share (licensed cars), Q2 2018 and Q2 2020
    • Mitsubishi’s Outlander PHEV is most significant model
      • Figure 46: Top 10 hybrid and electric models (licensed cars), Q2 2020
    • Premium brands dominate the plug-in hybrid market
      • Figure 47: Top 10 plug-in hybrid electric models (licensed cars), Q2 2020
    • Electric market sees interest from a mix of brands
      • Figure 48: Top 10 electric models (licensed cars), Q2 2020
    • Toyota’s Mirai dominates the emerging fuel cell market
      • Figure 49: Fuel cell models (licensed cars), Q2 2020
  12. Launch Activity and Innovation

    • Hyundai and INEOS working together on hydrogen fuel cells
    • Tesla promises increased performance from its electric batteries
    • Zap-Map launches new pay app
      • Figure 50: Zap-Pay, September 2020
  13. Advertising and Marketing Activity

    • Promotional support on the up
      • Figure 51: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2015-19
    • Broadening of the advertising base is behind the increase in investment
      • Figure 52: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2015-19
    • Investment towards electric cars grows
      • Figure 53: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars (top 20), by manufacturer and brand, 2019
    • Television dominates when it comes to investment
      • Figure 54: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2019
    • Nielsen Ad Intel coverage
  14. The Consumer – Key Takeaways

    • COVID-19 worries and concerns about expenditure are easing
    • Young men are notable owners of hybrid and electric cars
    • Only around a quarter of cars in ownership are under three years old
    • Car use polarised towards commuting or broader uses
    • Interest in hybrid and electric is high but few want to purchase one now
    • Most car owners want the security of tried and trusted technology
    • Information is moving online
    • Charging the leading concern in owning a hybrid or electric car
    • Worries for young adults need to be overcome
  15. Impact of COVID-19 on Consumer Behaviour

    • Fewer adults are worried about the risk of COVID-19
      • Figure 55: Worries about risk of exposure to COVID-19, April-October 2020
    • Fall in those who are shunning non-essential spending
      • Figure 56: Non-essential spending, April-October 2020
    • Little evidence of a shift towards new ways of purchasing
      • Figure 57: Shopping habits, April-October 2020
  16. Vehicle Ownership

    • While car ownership is high a significant minority don’t own a car
      • Figure 58: Vehicle ownership, September 2020
    • Hybrid and electric cars are proving popular with young adults
    • Income is an important divide between those owning standard and hybrid/electric cars
    • Young adults are most likely to own another type of vehicle
  17. Age of Car Owned

    • Just over a quarter of cars were purchased in the last three years
      • Figure 59: Age of car owned, September 2020
    • Income plays a major part in the age of car owned
    • Young men favour newer cars
    • Regional differences in vehicle age shouldn’t be overlooked
    • Ownership of older cars is growing
      • Figure 60: Age of car owned, 2016-20
  18. Main Uses for a Car

    • Majority of commuters view this as the main use for their car
      • Figure 61: Main uses for a car, September 2020
    • Older adults record a variety of uses for their car
    • Higher earners have broad demands
    • Commuting already popular for hybrid and electric owners
  19. Interest in Purchasing a Hybrid/Electric Car

    • Over half of traditional car owners are interested in a hybrid or electric vehicle
      • Figure 62: Interest in purchasing a hybrid/electric car, September 2020
    • Young men record a high level of interest in ownership
    • Wealthy adults are also an important market
    • City dwellers turning green
    • Owners of younger cars represent a stronger opportunity
    • Car owners are becoming more confident about hybrid/electric
      • Figure 63: Interest in purchasing a hybrid/electric car, 2016-20
    • No immediate rush to purchase by many potential buyers
      • Figure 64: Interest in purchasing a hybrid/electric car, September 2020
    • Middle-aged adults are the best short-term prospects…
    • …with families likely to offer good opportunities
    • No time to wait if city market is to be developed
    • Owners of cars less than three years old present best prospects for purchase
  20. Interest in Type of Hybrid/Electric Car

    • Hybrids dominate as the preferred technology choice
      • Figure 65: Interest in type of hybrid/electric car, September 2020
    • Men are a key market for emerging technologies
    • Older adults most likely to go for hybrid
    • Location doesn’t appear a barrier towards new technology…
    • …nor does wealth for electric vehicles
    • Hybrid is best placed to capture interest from owners of older cars
    • Interest in technologies is narrowing towards a smaller number
      • Figure 66: Interest in type of hybrid/electric car, 2018 and 2020
  21. Sources of Information on Hybrid/Electric Cars

    • Websites are by far the most popular channels for information
      • Figure 67: Sources of information on hybrid/electric cars, September 2020
    • Channel preferences vary by age
    • Physical engagement for information is low in cities
    • Direct communication by dealers important for owners of newer cars
    • Dealer websites are the real winners when it comes to information
      • Figure 68: Interest in purchasing a hybrid/electric car, 2016-20
  22. Concerns about Hybrid and Electric Cars

    • Charging and price are the two key concerns with electric cars
      • Figure 69: Concerns about hybrid/electric cars, September 2020
    • Men have visual worries
    • Charging is a concern for older adults
    • London is ready to go
    • Resale issue on the minds of low earners
    • Concern about the future role of going electric
    • A broadening of models is necessary if opportunities from new car owners are to be grasped
    • Older adults who are not working are most concerned about the price of purchasing a hybrid/electric car
      • Figure 70: Hybrid and electric cars – CHAID – Tree output, September 2020
      • Figure 71: Hybrid and electric cars – CHAID – Table output, September 2020
  23. Attitudes towards Hybrid/Electric Cars

    • More is needed to garner confidence in electric cars
      • Figure 72: Attitudes towards hybrid/electric cars, September 2020
    • Issues for young buyers need to be addressed
    • Older adults appear best placed for hybrid sales
    • Less wealthy car buyers shouldn’t be overlooked
  24. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • Exclusions
    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch