2022
9
UK Electric and Hybrid Cars Market Report 2022
2023-01-31T03:04:43+00:00
OX1101341
2195
159968
[{"name":"Electric and Hybrid","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive\/electric-hybrid-cars"}]
Report
en_GB
“Despite the poor performance for the wider car market, demand for electric and hybrid cars remains strong. Yet with a cost of living crisis placing pressure on finances, even sales…

UK Electric and Hybrid Cars Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Electric and Hybrid Cars Market Report examines how hybrid and EV market trends are affecting consumer purchasing decisions, transitioning into the coming IC engine ban, and opportunities for suppliers. This report covers the hybrid and electric car market size, market forecast, market segmentation and industry trends for the UK EV & hybrid car market.

Electric and Hybrid Market Current Landscape 

The popularity of the EV & hybrid car market has far eclipsed that of IC engine vehicles in recent years. In fact, they are likely to have accounted for around 40% of the total new car market in 2022. While sales data looks promising, especially as new BEV sales surpass HEV and PHEV, there are some concerns around adoption of BEVs. Mintel’s exclusive research for this report hints that interest in switching to BEV in particular may have plateaued.

Consumers may be more cautious about switching to an EV, and this propensity to purchase is not just due to the cost of living crisis. A significant minority express concerns around public charging, with more than 31% of potential hybrid or electric purchasers expressing concerns about accessibility of public charging facilities.

Those with an income of £50,000 or more are considering a PHEV slightly more than a BEV car currently. This might indicate that many car buyers might not have ‘read the script’ that PHEVs are a stop-gap technology. Affordability, choice of models, and concerns about BEV public charging remain key drivers of the hybrid car market over the BEV market, and may persist until the 2035 ban on new hybrid sales.

Hybrid and EV Market Trends

Cost is a prevalent issue in the electric car market. With past UK government subsidies to reduce the list price and help with home charging of new EVs long since removed, the issue of how to afford an EV may become a wider spread issue amongst would-be buyers. As discussed, affordability is a consideration for both EV and HEV buyers, and this may make hybrids more appealing in the near-term, especially for outright buyers.

There is an opportunity for appealing in particular to older consumers, as they overwhelmingly express a preference for outright buying, in Mintel’s research. These consumers can be catered for with leasing, should suppliers highlight the considerable activity by OEMs, and thus the ability to upgrade their car and benefit from better technology.

  • Hybrid & EV Market share: VW Group leads the way with 15.8% market share in Q3 2022, with Tesla placing fourth. Find more EV market share details within this report.
  • Hybrid & EV Market size: 13% of UK adults now own an electric or hybrid electric car, while the same percentage of young men own an electric car specifically.
  • Hybrid & EV Consumer behaviours: More consumers express an interest in buying a hybrid/electric car in 3-5 years than other time frames.

Hybrid and Electric Car Future Market

As the ban on new IC engine sales approaches in 2030, hybrid and electric cars are expected to account for 7 out of 10 new vehicles by 2027. Key for the success of the transition to plug-in cars will be charger speed. Here, ultra-rapid super chargers are the way forward. While their 4.4% share of connectors in 2022 is a major improvement on earlier years, faster progress is needed so that consumer concerns about the usability of plug-in cars can be minimised.

OEMs and others in the automotive sector can do more themselves to improve charging networks. Tesla has achieved much to differentiate itself with fast charging, an initiative that others may wish to replicate possibly as a partnership so as to deliver similar brand credibility with owners and potential owners.

To discover more about the Electric and Hybrid Car Market read our UK Car Review Market Report, or take a look at our extensive Automotive market research.

Quickly Understand

  • The impact of COVID-19, and more recently the cost-of-living crisis, on the electric and hybrid car market.
  • Trends in demand for particular hybrid and electric technologies.
  • Key drivers impacting on the EV & hybrid car 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

Products: Mintel’s Report on the hybrid and electric car market covers vehicles that are powered either wholly or in part by an electric motor and/or batteries as defined by the UK government.

Brands: VW Group, BMW Group, Nissan-Renault-Mitsubishi, Tesla, Hyundai-Kia, Daimler, Stellantis, Jaguar Land Rover, Geely, MG Motors, Ford, Mercedes, Audi, Volvo, MINI, JustPark, Zap-Map, JustCharge, Sony, Aleatica, Vauxhall, Toyota, Lexus,  and more.

Expert Analysis from a Category Specialist

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

Despite the poor performance for the wider car market, demand for electric and hybrid cars remains strong. Yet with a cost of living crisis placing pressure on finances, even sales in this sector cannot be guaranteed to grow as predicted. Coupled with a need to invest in charging infrastructure to install further confidence from buyers, the UK market will remain constrained.

Neil MasonNeil Mason

Head of Retail Research

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for electric and hybrid cars
      • Figure 1: Electric and hybrid car outlook, 2023-28
    • The market
    • Recent strong sales for electric and hybrid cars are expected to continue
      • Figure 2: Market forecast for electric and hybrid new car registrations (UK), by volume, 2017-27
    • Battery electric cars see strongest growth within this market
      • Figure 3: Hybrid and electric car new registrations, by type (UK), by volume, 2017 and 2022
    • ULEV opportunities are focused on London and the Southeast
      • Figure 4: ULEV licensing (UK), by region and country, 2022
    • While franchised dealers dominate, the profile of online is growing
      • Figure 5: Sales of new and used electric and hybrid cars, by channel, 2017 and 2022
    • Expansion in charging locations and connectors boosts public charging
      • Figure 6: Number of charging locations and connectors, 2017-22
    • Incentives for electric and hybrid cars to be removed from April 2025
    • Companies and brands
    • VW Group takes lead as more mid-market manufacturers become active
      • Figure 7: Hybrid and electric manufacturer group share (licensed cars), Q3 2021 and Q3 2022
    • EV innovations increasingly focus on customer experience
    • The consumer
    • Interest in owning an electric and hybrid car is growing
      • Figure 8: Vehicle ownership (standard cars and hybrid/electric cars), 2018-22
    • Wealthy households are a key market
      • Figure 9: Age of car owned, 2022
    • Stagnation in interest towards hybrid/electric cars cannot be overlooked
      • Figure 10: Interest in purchasing a hybrid/electric car, 2018-22
    • Poor short-term sales prospects reinforce need for a better understanding of customer needs and concerns
      • Figure 11: Interest in purchasing a hybrid/electric car, 2022
    • Declining interest for battery electric cars poses questions about its future development
      • Figure 12: Interest in type of hybrid/electric car, 2020-22
    • Popularity of leasing with new car buyers has the potential to stimulate EV sales
      • Figure 13: Owning an electric car, 2022
    • Cost and convenience are important for those using public chargers for EVs
      • Figure 14: Charging an electric car, 2022
    • Costs to purchase an EV are a major barrier for older adults
      • Figure 15: Concerns about going electric, 2022
  3. Issues and Insights

    • The future will ‘eventually’ be electric
    • ‘Life in the old hybrid yet’
    • The affordability challenge
  4. Market Size and Performance

    • Electric and hybrid sector rides out difficulties facing the wider car market
      • Figure 16: Market size for electric and hybrid cars, 2017-22
    • Electric and hybrid is main challenger to petrol
      • Figure 17: New car registrations (UK), % of total, 2017 and 2021
    • Battery electric car sales record spectacular growth…
      • Figure 18: Hybrid and electric car new registrations, by type (UK), by volume, 2017-22
    • …to overtake the plug-in hybrid sector when it comes to sales
      • Figure 19: Change in hybrid electric, plug-in hybrid and battery electric car new registrations, (UK), 2017 and 2021
  5. Market Forecast

    • Electric and hybrid vehicles are set to dominate the wider car market
      • Figure 20: Electric and hybrid car outlook, 2023-28
    • Mintel forecasts sales exceeding 1.5m units in 2027
      • Figure 21: Market forecast for electric and hybrid new car registrations (UK), by volume, 2017-27
    • B-EVs increasingly challenge hybrids for market dominance
      • Figure 22: Hybrid and electric car new registrations, by type (UK), by volume, 2022 and 2027
    • Forecast methodology
  6. Market Segmentation

    • Cars using electric, hybrid and other technologies are growing their share of the car parc
      • Figure 23: Alternative fuel car parc (UK), by volume, 2017-22
    • While hybrids dominate, battery electric vehicles are gaining ground
      • Figure 24: Hybrid and electric vehicle car parc (UK), by volume, 2017-22
    • London and the Southeast account for a third of ULEVs
      • Figure 25: ULEV licensing (UK), by region and country, 2020-22
    • B-EV cars grow to dominate the ULEV sector
      • Figure 26: ULEV licensed cars (UK), % of volume, Q3 2017-Q3 2022
  7. Channels to Market

    • Dealers maintain share as new car volumes increase
    • Private sellers suffer from changes in the way cars are being sold
    • Online seeing steady growth as agency model spreads
      • Figure 27: Sales of new and used electric and hybrid cars, by channel, 2017-22
    • Around 5% of eBay listings are now electric or hybrid
      • Figure 28: Car advertisements in the UK, by fuel type (ebay.co.uk), 2020, 2021 & 2023
  8. Market Drivers

    • Inflation is the key concern for consumers and brands…
      • Figure 29: Unleaded and diesel pump prices, January 2020–December 2022
    • …and despite government support, energy prices are still a major concern
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Unemployment is at a near-50-year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 30: Household financial wellbeing index, 2009-22
    • …and most people are feeling the effects of price rises
    • Growth for the car parc is slowing
      • Figure 31: Number of licensed cars (Great Britain), 2000-20
    • Long-term predictions are for a fall in the size of the car parc
      • Figure 32: Car parc (UK) forecast, central scenario, 2020-34
    • While the Covid-19 hangover and emerging cost of living crisis both impact car sales…
      • Figure 33: New and used car market volumes (UK), 2017-22
    • …interest in ULEV cars expands
      • Figure 34: Number of licensed cars (UK*) 1-75g/km CO2, 2011-21
    • AFVs are set to capture over a third of new sales in 2022…
      • Figure 35: Sales of new cars by fuel type, 2017-22
    • …as consumer choice for plug-in cars improves markedly
      • Figure 36: Development of plug-in car models, registered for the first time, 2017-22
    • Steady growth in number of charging locations and connectors
      • Figure 37: Number of charging locations and connectors, 2017-22
    • Moves towards faster public charging remain in slow lane
      • Figure 38: Developments in connector speed, 2017-22
    • Growth in number of urban areas set to impose CAZs
    • Electric and hybrid vehicles as a second car?
      • Figure 39: Percentage of households with car availability, England, 2011-21
  9. Regulatory and Legislative Changes

    • Office for Zero Emission Vehicles
    • Policy commitments
    • Grants to purchasing
    • Grants for charging
    • Withdrawal of benefits from April 2025
  10. Market Share

    • Volume OE manufacturers grow their presence in the market
      • Figure 40: Hybrid and electric manufacturer group share (licensed cars), Q3 2021 and Q3 2022
    • Leading manufacturers suffer as market fragments
      • Figure 41: Electric and hybrid car brand share (licensed cars), Q3 2021 and Q3 2022
    • Popularity of Tesla elevates the Model 3 into first place
      • Figure 42: Top 10 electric and hybrid models (licensed cars), Q3 2021 and Q3 2022
    • Tesla takes top two spaces when it comes to annual sales
      • Figure 43: Top 10 electric models (new sales), 12 months to Q3 2022
    • Ford takes top place in the plug-in market
      • Figure 44: Top 10 plug-in hybrid electric models (new sales), 12 months to Q3 2022
  11. Launch Activity and Innovation

    • JustPark offers private charge points for public use
      • Figure 45: Sharing of home chargers with JustPark, 2022
    • Entry of Sony illustrates the potential changing role for future cars
      • Figure 46: Afeela from Sony Honda Mobility, 2022
    • Automated charging for convenience and accessibility
    • Charging EVs during travel
  12. Advertising and Marketing Activity

    • Promotional investment strong despite economic downturn
      • Figure 47: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2017-22
    • Volume car makers strengthen share in market
      • Figure 48: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2018-2022
    • Television facing challenge from other media
      • Figure 49: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2020 and 2022
    • Nielsen Ad Intel coverage
  13. Vehicle Ownership

    • 13% of adults now own a hybrid or electric car
      • Figure 50: Vehicle ownership, 2022
    • Young men are a key group as owners of electric and hybrid cars…
    • …as are high income earners
    • Interest from those living in urban areas shouldn’t be overlooked
    • Hybrid and electric ownership has more than doubled in four years
      • Figure 51: Vehicle ownership (standard cars and hybrid/electric cars), 2018-22
  14. Age of Car Owned

    • Broad spread of cars by age
      • Figure 52: Age of car owned, 2022
    • New cars are popular with young adults and especially men
    • Affluent are also important in owning a new car
    • Urban areas present contrasts in ownership
    • Most electric and hybrid cars are under three years old
    • Profile for newer cars falls as a result of recent sluggish sales
      • Figure 53: Age of car owned, 2018-22
  15. Interest in Purchasing a Hybrid/Electric Car

    • Over half of adults would be interested in purchasing a hybrid/electric car
      • Figure 54: Interest in purchasing a hybrid/electric car, 2022
    • Young men present a ready opportunity
    • Cost of living worries may be reinforcing importance of focusing on wealthy adults
    • Growing restrictions on car emissions is helping drive interest from city dwellers
    • Older women – an important opportunity
    • Owners of newer cars are most likely to switch to hybrid or electric
    • Recent growing interest in hybrid/electric ownership appears to have stalled
      • Figure 55: Interest in purchasing a hybrid/electric car, 2018-22
    • Short-term plans for going electric/hybrid remain low
      • Figure 56: Interest in purchasing an electric/hybrid car, 2022
    • Affluent are key short-term purchasers
    • Young families are also likely to purchase soon
    • Owners of newer cars present the best short-term prospects
  16. Interest in Type of Hybrid/Electric Car

    • Hybrid dominates as the preferred choice for potential owners
      • Figure 57: Interest in type of hybrid/electric car, 2022
    • Varying interest in specific powertrains by age highlights opportunities for segmented marketing
    • Uncertainty among older women illustrates need for reassurance
    • Work is needed to raise interest in B-EVs among those in rural areas
    • Wealthy shun traditional hybrids in favour of plug-in and battery electric cars
      • Figure 58: Interest in type of hybrid/electric car, households earning >£50,000 pa, 2020 and 2022
    • Older car owners play it safe by opting for hybrid
    • Uncertainty on technology choice for those with long-term purchase plans
    • Hybrid remains popular as interest in EVs appears to stall
      • Figure 59: Interest in type of hybrid/electric car, 2020-22
  17. Owning an Electric Car

    • Just under a quarter of adults would lease an electric or hybrid car
      • Figure 60: Owning an electric car, 2022
    • Leasing is out of favour with older buyers…
    • …but is popular with those in urban areas
    • Younger adults are interested in different methods of access to a car
    • Leasing offers advantages for those who prefer to purchase new
  18. Charging an Electric Car

    • Car parks and service stations are key for public charging
      • Figure 61: Charging an electric car, 2022
    • Older adults have limited interest in public charging for an EV
    • Strong demand for public charging by urban residents
    • Popularity of driveway charging should be exploited further
  19. Concerns About Going Electric

    • Costs to purchase an electric car are key barrier
      • Figure 62: Concerns about going electric, 2022
    • Women register concerns about the practicalities of public charging
    • Costs of buying an EV are a major barrier for older adults
    • Men want to see more EV model launches
    • Public charging concerns need to be resolved
    • Addressing purchase price concerns for less wealthy is needed
      • Figure 63: Electric and hybrid cars – CHAID – Tree output, October 2022
      • Figure 64: Electric and hybrid cars – CHAID – Table output, October 2022
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Exclusions
    • Abbreviations
    • Consumer research methodology
  21. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 65: Market forecast and prediction intervals for hybrid and electric cars, 2022-27
    • Market drivers and assumptions
    • Forecast 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