2022
9
UK Electric and Hybrid Cars Market Report 2022
2021-12-24T03:03:16+00:00
OX1048589
2995
146496
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Report
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“Set against the backdrop of an automotive sector that has been struggling from falling demand, the performance of the electric and hybrid sector has been spectacular. Growing awareness of the…

UK Electric and Hybrid Cars Market Report 2022

$ 2,995 (Excl.Tax)

Description

The UK Electric and Hybrid Cars report identifies consumer attitudes towards hybrid and electric technologies, electric car statistics, EV market sales, and legislative trends in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Electric Vehicle market in the UK.

Current Market Landscape

The pace of development of the electric vehicle market size is impressive. Not only is demand for new vehicles in this sector outstripping that for traditional petrol and diesel models but this is coming at a period of intense difficulty for the automotive market. Battery electric vehicles (B-EVs) are seeing especially strong growth with new sales ahead from 10,429 units in 2016 to 107,913 units in 2020 with 194,250 units estimated for 2021.

  • Sales of new electric and hybrid cars actually increased in 2020 by 86.1% compared with growth of only 24.1% in 2019.
  • Volumes were ahead 86.4% to 323,225 units in 2020 with further progress estimated for 2021.
  • Overall dealers took a commanding 65.7% of channel sales in 2021 which is 3.3 percentage points ahead of 2016.

COVID-19 appears to have had a positive impact on this sector of the automotive market. Other factors such as improvements in model range and a growing number of mid-market manufacturers operating in this market, are driving forward demand.

Future Market Trends in Electric and Hybrid Cars 

Looking forward, it is the wider role of the car in society that is likely to stem expansion of the automotive sector. Whereas until recently growth had been un-checked there are signs of stagnation in the number of cars that are licensed. Factors such as costs, congestion and a push towards greater use of other methods of public mobility are all weighing down on private car ownership. A greater acceptance of working from home since the pandemic will only add to these pressures.

Tapping into the appetite of young adults remains a significant short-term opportunity. Not only is this group (typically under 35) most interested in owning an electric or hybrid car but they are ripe to serve as a testing ground as early adopters of this technology. Moves by OE (Original Equipment) auto producers active in the mid-market to enter this sector in force is expected to be especially significant in continuing to drive forward demand.

Read on to discover more details or take a look at all of our UK Automotive market research.

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 and support for the sector.
  • 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 attitudes and concerns.

Covered in this report

Car Types: Hybrid vehicle (HV), battery electric vehicle (B-EV), plug-in hybrid electric vehicle (PH-EV), renge extended electric vehicle (RE-EV), fuel cell electric vehicle (FC-EV).

Brands: Tesla, BMW, Kia, Mercedes, Nissan, Volkswagen, Audi, Jaguar, Renault, Hyundai, MG, Volvo, Mini, Porsche, Ford, Vauxhall, Peugeot, Diamler, VW, Stellantis, Geely, Mitsubishi, Land Rover, ZipCharge, Toyota, Lexus.

Expert analysis from a specialist in the field

This report, written by Neil Mason, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Set against the backdrop of an automotive sector that has been struggling from falling demand, the performance of the electric and hybrid sector has been spectacular. Growing awareness of the benefits these vehicles offer is now being matched by improvements in model range. With impending bans on petrol and diesel vehicles in 2030, growth can only continue.
Neil Mason
Retail Category Director

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • 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, 2021
    • Market size
    • Pandemic fails to dent hybrid and electric sales
    • Growing demand is forecast to see B-EVs increasingly challenge hybrids
      • Figure 2: Hybrid and electric new car registrations (United Kingdom), by volume, 2016-26
    • Franchised dealers strengthen their profile
      • Figure 3: Sales of new and used electric and hybrid cars, percentage point change by channel, 2016-21
    • Growth in ULEV model further opens up the market
      • Figure 4: Development of ULEV models, 2015-21
    • Increased commitment by government to strengthen the charging network
    • Companies and Brands
    • Electric and mid-market models are making in-roads
      • Figure 5: Top 10 hybrid and electric models, new sales, 12 months to Q2 2021
    • B-EV support and innovation within B-EV and FC-EV sectors continues
    • Investment in promotion surpasses £200 million per annum
      • Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2016-21 *
    • The consumer
    • Penetration of electric and hybrid vehicles accelerates
      • Figure 7: Vehicle ownership (standard cars and hybrid/electric cars, 2016-21
    • Electric and hybrid vehicles enter a market where older cars are preferred
      • Figure 8: Age of car owned, 2016-21
    • Certain groups especially receptive to entering this market
      • Figure 9: Interest in purchasing a hybrid/electric car, 2016-21
    • Men are more likely to look for innovations
      • Figure 10: Interest in type of hybrid/electric car, 2021
    • Cost concerns are likely to be a barrier for potential buyers
      • Figure 11: Factors affecting the purchase of an electric/hybrid car, 2021
    • Engagement with city dwellers could benefit from retail links
      • Figure 12: Sources of information on hybrid/electric cars, 2021
    • Investment in public charging offers potential to open up new market
      • Figure 13: Attitudes towards hybrid/electric cars, 2021
  3. Issues and Insights

    • Hybrid and EVs will increasingly dominate and shape the wider car market
    • Adopt a segmented approach to maintain momentum
    • Increasing complexity for buyers
  4. Market Size and Forecast

    • Electric and hybrid car sales unaffected by pandemic
      • Figure 14: Short-, medium- and long-term impact of COVID-19 on hybrid and electric car market, 2021
    • Pandemic has minimal impact on performance of hybrid and electric sector…
      • Figure 15: Hybrid and electric new car registrations (United Kingdom), by volume, 2016-21
    • … as electric and hybrid sector establishes itself
      • Figure 16: New car registrations (United Kingdom), % of total, 2016 and 2020
    • Battery electric car sales record the strongest growth…
      • Figure 17: Hybrid and electric car new registrations, by type (United Kingdom), by volume, 2016-21
    • … although it is the hybrid electric sector which is the largest
      • Figure 18: Change in Hybrid electric, plug-in hybrid and battery electric car new registrations, (United Kingdom), ‘000 units, 2016 and 2020
  5. Market Forecast

    • Spectacular growth forecast as electric and hybrid vehicles come of age
      • Figure 19: Hybrid and electric new car registrations (United Kingdom), by volume, 2016-26
    • Hybrid sales will drive much of the growth within the market
      • Figure 20: Hybrid and electric car new registrations, by type (United Kingdom), by volume, 2021-26
    • Market drivers and assumptions
      • Figure 21: Key drivers affecting Mintel’s market forecast, 2016-26
    • Forecast methodology
  6. Market Segmentation

    • 1 in 20 cars on the road are forecast to be using alternative fuels in 2021
      • Figure 22: Alternative fuel car parc (United Kingdom), by volume, 2016-21
    • Early rollout of hybrid allows these cars to dominate the market
      • Figure 23: Hybrid and electric vehicle car parc (United Kingdom), by volume, 2016-21
    • London dominates activity when it comes to ULEV purchasing
      • Figure 24: ULEV licensing (United Kingdom), by type and regional share, Q2 2021
    • Battery Electric cars grow to dominate the ULEV sector
      • Figure 25: ULEV licensed cars (United Kingdom), % of volume, Q4 2016-Q2 2021
  7. Channels to Market

    • Strong sales of new vehicles maintain dealer profile
    • Online also set to see success
    • Independents and private sellers fail to grow share
      • Figure 26: Sales of new and used electric and hybrid cars, by channel, 2016-21
    • Online sales remain limited within the used sector of the market
      • Figure 27: Car advertisements in the UK, by fuel type (ebay.co.uk), 2018, 2020 and 2021
  8. Market Drivers

    • GDP should reach pre-pandemic levels by the end of Q1 2022…
    • …but the post-COVID bounce-back will be short-term
    • Inflationary pressures are mounting
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 28: Household financial wellbeing index, 2016-21
    • UK car parc is showing signs of maturity …
      • Figure 29: Number of licensed cars (Great Britain), million units, 2000-20
    • … with coming decade expected to see a fall in its size
      • Figure 30: Number of forecast licensed cars in the UK, million units, central scenario, 2020-35
    • Sales of new and used cars faltered during the pandemic …
      • Figure 31: New and used car market volumes (United Kingdom), million units, 2016-21
    • … although interest in ULEV cars continued to grow
      • Figure 32: Number of licensed cars (Great Britain) 1-100g/km CO2, 2010-20
    • Success of hybrid and electric sales dents profile of petrol and diesel
      • Figure 33: Number of licensed cars (Great Britain), million units, 2016-21
    • ULEV models nearly double between 2019 and 2021
      • Figure 34: Development of ULEV models, 2015-21
    • Charging network is seeing steady growth
      • Figure 35: Number of charging locations and connectors, 2016-21
    • Charger speed remains in the slow lane
      • Figure 36: Developments in connector speed, 2016-21
    • Mass market brands are beginning to challenge premium marques
      • Figure 37: bestselling electric and hybrid cars, Q2 2021 v Q2 2020
    • Fuel prices rebound as global economies re-open
      • Figure 38: Unleaded and diesel pump prices, January 2020 – November 2021
    • Growing number of urban areas set to impose clean air zones
    • B-EVs could carve out a role in second car sector
      • Figure 39: Percentage of households with car availability, England, 2010-20
  9. Regulatory and Legislative Changes

    • Office for Zero Emissions
    • Policy commitments
    • Grants to purchasing
    • Grands for charging
    • Private
    • Public
  10. Market Share

    • Nissan-Renault-Mitsubishi Alliance dominates the market
      • Figure 40: Hybrid and electric manufacturer group share (licensed cars), Q2 2021
    • Leading manufacturers suffer as market fragments
      • Figure 41: Hybrid and electric brand share (licensed cars), Q2 2020 and Q2 2021
    • While Mitsubishi’s Outlander PHEV has been the most successful to date…
      • Figure 42: Top 10 hybrid and electric models (licensed cars), Q2 2021
    • … Tesla is currently proving the most popular with buyers
      • Figure 43: Top 10 hybrid and electric models, new sales, 12 months to Q2 2021
    • Premium brands remain an important feature of the PHEV market
      • Figure 44: Top 10 plug-in hybrid electric models (licensed cars), Q2 2021
    • Electric market seeks to appeal to a broader range of buyers
      • Figure 45: Top 10 electric models (licensed cars), Q2 2021
    • Toyota’s Mirai dominates the emerging fuel cell market
      • Figure 46: Fuel cell models (licensed cars), Q2 2021
  11. Launch Activity and Innovation

    • ZipCharge set to launch a portable EV charging unit
      • Figure 47: ZipCharge Go, November 2021
    • Elonroad trials conductive EV rail
      • Figure 48: Elonroad electric road system
    • Lightyear proves the durability of its solar powered EV
      • Figure 49: Lightyear One solar electric vehicle
    • JLR’s hydrogen fuel cell defender
  12. Advertising and Marketing Activity

    • Promotional support passes £200 million per annum
      • Figure 50: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2016-21 *
    • Confidence for manufacturers boosts investment during 2021
      • Figure 51: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by month, 2020-21
    • Big names in the auto industry begin to stake centre stage
      • Figure 52: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2016-20
    • Television increasingly preferred over other channels
      • Figure 53: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2020 and 2021
    • Nielsen Ad Intel coverage
  13. Vehicle Ownership

    • Hybrid and electric cars account for over 1 in 10 cars in ownership
      • Figure 54: Vehicle ownership, 2021
    • Young men are most likely to be hybrid and electric car owners…
    • … with wealth also impacting on ownership
    • Growing pressures on city dwellers shouldn’t be overlooked
    • Hybrid and electric ownership has increased 300% in 5 years
      • Figure 55: Vehicle ownership (standard cars and hybrid/electric cars, 2016-21
  14. Age of Car Owned

    • A quarter of cars were purchased in the last 3 years
      • Figure 56: Age of car owned, 2021
    • Young adults favour buying new
    • Preference for older car ownership in rural areas could affect electric and hybrid take-up
    • Potential of high income earners shouldn’t be forgotten
    • Higher interest in owning new in some parts of the country could benefit from a focused marketing approach
    • Profile of newer cars down as older cars grow market presence
      • Figure 57: Age of car owned, 2016-21
  15. Interest in Purchasing a Hybrid/Electric Car

    • Over half are interested in owning a hybrid/electric car
      • Figure 58: Interest in purchasing a hybrid/electric car, 2021
    • Young fathers offer an opportunity to focus cars on family needs
    • Focus shouldn’t be limited to wealthy adults
    • New emission restrictions ensure demand strongest in London
    • Switching most likely from owners of younger cars
    • Confidence in going hybrid/electric is growing
      • Figure 59: Interest in purchasing a hybrid/electric car, 2016-21
    • Only a minority plan to purchase in the coming 12 months
      • Figure 60: Interest in purchasing a hybrid/electric car, 2021
    • Short-term purchasers are likely to be Older Millennials
    • Addressing the needs of children can help drive interest from young fathers
    • City dwellers also hold good prospects
    • Improving infrastructure could boost demand from tenants
    • Over half of those with a car less than three years old would purchase a hybrid/electric car in the coming 12 months
  16. Interest in Type of Hybrid/Electric Car

    • Electric vies with hybrid as preferred alternative to traditional vehicle
      • Figure 61: Interest in type of hybrid/electric car, 2021
    • Electric vehicles are well placed with young adults
    • Young men can play an important role in the emerging fuel cell market
    • Investment may be needed to bolster rural EV interest
    • Older car owners need support in switching to an EV
    • Hybrid and fuel cell vehicles both see strong short-term interest
    • EV cars are increasingly viewed as a viable option
      • Figure 62: Interest in type of hybrid/electric car, 2018-2021
  17. Factors Affecting the Purchase of Hybrid/Electric Cars

    • Importance of running costs illustrates the focus needed by the sector
      • Figure 63: Factors affecting the purchase of an electric/hybrid car, 2021
    • Enhancing image can bring with it valuable customers
    • Women are well placed for support
    • Financial support can benefit families
    • Costs are key in attracting owners of older vehicles to the sector …
    • … although non-price factors are key for those buying in the short term
  18. Sources of Information on Hybrid/Electric Cars

    • Digital dominates as an information source
      • Figure 64: Sources of information on hybrid/electric cars, 2021
    • Dealership visits offer a chance to engage with older adults
    • City dwellers want less physical and more visual support
    • Dealers have an important role with owners of newer cars
    • Older adults with younger cars want to rely on dealers for information
      • Figure 65: Information Sources for hybrid and Electric Cars – CHAID – Tree output, October 2021
      • Figure 66: Information Sources for hybrid and Electric Cars – CHAID – Table output, October 2021
    • Interaction with dealers and garages grows post pandemic
      • Figure 67: Sources of information on hybrid/electric cars, 2020 and 2021
  19. Attitudes towards Hybrid/Electric Cars

    • Journey restrictions and charging dominate worries …
      • Figure 68: Attitudes towards hybrid/electric cars, 2021
    • .. with growing concerns about the practicality of owning a car in this market grow
      • Figure 69: Attitudes towards hybrid/electric cars, 2021
    • Focusing on hybrids may be the best strategy for older adults
    • Good potential for EV ownership exists amongst those who rent
    • Breaking down barriers for young men
    • Hybrid and electric owners are well informed
    • Improving public charging is needed to strengthen interest from owners of younger cars
  20. Appendix – Data Sources, Exclusions, Abbreviations and Consumer Research Methodology

    • Data sources
    • Exclusions
    • Abbreviations
    • Consumer research methodology
  21. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 70: Market forecast and prediction intervals for hybrid and electric cars, 2021-26
    • Market drivers and assumptions
      • Figure 71: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology

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