UK Electric and Hybrid Cars Market Report 2022
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Report Summary
A newer version of this report is available, for the most up-to-date UK electric and hybrid cars market research take a look at Mintel’s latest report here.
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 Mason
Head of Retail Research
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