The UK electric and hybrid car market is undergoing significant transformation, driven by technological innovations and surging sales, particularly of Battery Electric Vehicles (BEVs). Despite this growth, the market faces challenges including high purchase prices, limited charging infrastructure, and cautious consumer interest.
Indeed, half of respondents (49%) cite price as the biggest concern about owning an EV. Furthermore, our consumer research for this report also shows that almost 4 in 10 (37%) respondents express the availability of public charging is a concern.
In 2024, BEVs experienced a growth surge of 727% since 2019, underscoring a major shift in consumer preference within the automotive industry. However, EV sales, which accounted for a quarter of total car sales, are projected to fall short of government targets.
Additionally, while interest in purchasing electric or hybrid cars has declined to 50% in 2024, down from 53% in 2023, 54% in 2022, and 58% in 2021, the used EV market is gaining traction due to increased availability and affordability. As such, a significant 36% are showing interest in second-hand or used options.
This report looks at the following areas:
- Rapid evolution of the electric and hybrid car market with innovative models and technologies.
- Key recommendations for players to thrive in the market i.e. educating consumers, and showcasing tech advancements/environmental impact through effective campaigns. Opportunities arising from the booming second-hand market as affordability becomes a key factor.
- Major challenges the fast moving market faces i.e. high costs and inadequate charging infrastructure with concerns about public charging station reliability affecting consumer confidence.
- Prospects fuelled by shifting consumer attitudes towards electric and hybrid cars featuring solutions to alleviate range anxiety and compelling case study insights.
- Evolving government policies and incentives, with recent changes including extending hybrid car sales to 2035, and their impacts.
The market is evolving rapidly driven by innovative new models and cutting-edge technologies. These advancements have significantly contributed to a rise in sales.
Utku Tansel, Senior Retail Analyst
Market Definitions
Five types of hybrid and electric car are included in this review:
- Hybrid Vehicle or HV, combining an electric motor with a traditional fuel such as petrol or diesel. The electric motor is charged using the motion of the car and will typically kick in at low speeds.
- Battery Electric Vehicle or B-EV, a vehicle powered, in part or in full, by an electric motor and battery that can be plugged into the mains or a charging point.
- Plug-in Hybrid Electric Vehicle or PH-EV, a vehicle with a battery and an internal combustion engine (petrol, diesel etc). Power from the battery is supplemented with power from the internal combustion engine. Once the charge of the battery is exhausted the vehicle operates as a hybrid. The battery can be plugged into the mains or a charging point.
- Range Extended Electric Vehicle or RE-EV, a vehicle powered by a battery with an internal combustion engine-powered generator on board. Once the charge of the battery is exhausted the internal combustion engine takes over. The battery can be plugged into the mains or a charging point or charged by the internal combustion engine.
- Fuel Cell Electric Vehicle or FC-EV, a vehicle that uses hydrogen gas or another product as a fuel, and which is stored in a compact, strong, but lightweight pressure tank. Power is generated by the fuel cell stack and is used to drive the FC-EV’s electric motor, with additional power supplied when needed from a secondary battery.
Within the hybrid and electric car market Mintel identifies a segment called ULEVs (Ultra-Low Emission Vehicles). ULEVs have traditionally been defined as cars or vans with tailpipe CO2 (Carbon Dioxide) emissions of 75g/km or less. This definition was changed by the UK government for the purpose of its plug-in car grant to less than 50g/km of CO2 in October 2018.
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EXECUTIVE SUMMARY
- Opportunities for the electric & hybrid car market
- Highlight value and educate to overcome cost barriers
- Address infrastructure gaps
- Graph 1: charging an electric car, 2024
- Powering the future: key initiatives to boost electric charging stations
- Capitalise on the used EV market
- Actionable strategies to succeed in the used EV market
- Market dynamics and outlook
- Market size & forecast
- The five year outlook for the electric & hybrid car market
- Market size and forecast – volume
- B-EVs sales surge shaping the future of vehicles
- Graph 2: hybrid, plug-in hybrid and battery electric new car registrations, by type, units, 2019 and 2023
- EV sales surge but fall short of 2024 targets
- Countdown to 2030: a new consultation launched by the government
- Accelerating the UK’s electric future
- Fully electric cars are shaping the market
- Graph 3: new car registrations, by type, % of total, 2019 and 2023
- What consumers want and why
- Rising stars: the untapped potential of hybrid and electric cars
- Graph 4: vehicle ownership, 2024 vs 2023
- Waning interest poses a challenge
- Graph 5: interest in purchasing a hybrid/electric car, %, 2021-24
- Rising demand for pre-owned electric and hybrid cars
- Graph 6: preference between new and used when purchasing a hybrid/electric car, 2024 vs 2023
- Buyers play it safe when it comes to move away from petrol and diesel
- Graph 7: interest in type of hybrid/electric car, % of respondents, 2024
- Home charging: the top choice for EV owners
- Graph 8: charging an electric car, 2024
- Price remains the biggest barrier
- Graph 9: concerns about owning an electric car, %, 2024 vs 2023
- Convenience and range present opportunities and challenges
- Graph 10: attitudes towards hybrid and electric cars, 2024
- Innovation and marketing
- Renault unveils affordable electric vehicle
- Volvo introduces EV battery passport
- Sainsbury’s invest in EV charging
- Tesla expands self-serve test drives to more locations across the UK
- Jaguar’s rebrand focuses on creativity
- Peugeot shows off its electric vehicle range
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MARKET DYNAMICS
- Market size
- Electric and hybrid sales growth slows down
- Graph 11: market size for electric and hybrid cars (new registrations), units, 2018-24
- EV sales surge but fall short of 2024 targets
- With diesel already sidelined, petrol is now losing its appeal
- Graph 12: new car registrations, by type, % of total, 2019 and 2023
- The current state of the EV market and key barriers
- Used EV sales see significant growth
- Market forecast
- Market size and forecast – volume
- The future of hybrid and battery-powered vehicles
- Driving solutions for the future of EVs
- Market segmentation
- B-EVs sales surge shaping the future of vehicles
- Graph 13: hybrid, plug-in hybrid and battery electric new car registrations, by type, units, 2019 and 2023
- Driving the future: the rise of electric and hybrid vehicles
- Fully electric cars drive growth
- Graph 14: new car registrations, by type, % of total, 2019 and 2023
- Market share
- Shifting gears: the changing landscape of top EV models
- Graph 15: top 10 electric and hybrid model share (licensed cars), Q2 2024 vs Q2 2022
- Tesla continues to lead the market
- Market drivers
- Falling inflation has reduced pressure on household finances
- Graph 16: CPI* inflation rate, 2021-24
- Consumer confidence outlook
- Graph 17: the financial confidence index, 2016-24
- Fuel prices down but remain above those seen during the pandemic
- Graph 18: unleaded petrol and diesel pump prices, 2021-24
- The industry needs certainty and stability from government policies…
- …as the goalposts for incentives and regulations keep changing
- UK extends hybrid car sales to 2035 amid push for EVs
- Big changes ahead: VED to include electric vehicles from 2025
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WHAT CONSUMERS WANT AND WHY
- Vehicle ownership
- Rising stars: the untapped potential of hybrid and electric cars
- Graph 19: vehicle ownership, 2024 vs 2023
- Income shapes the green vehicle revolution
- Graph 20: vehicle ownership, by household income, 2024
- Dacia Spring offers an affordable entry point for EV ownership
- Purchasing a hybrid/electric car
- A half gear up to enter the electric/hybrid car market
- Graph 21: interest in purchasing a hybrid/electric car, 2024 vs 2023
- Waning interest poses a challenge
- Graph 22: interest in purchasing a hybrid/electric car, %, 2021-24
- Navigating the shifting landscape of electric and hybrid car interest
- Young men drive electric adoption; young women hold key to future growth
- Graph 23: interest in purchasing a hybrid/electric car, by sex and age, %, 2024
- Harnessing the rural renaissance
- Graph 24: interest in purchasing a hybrid/electric car, by location, 2024 vs 2023
- Leverage used EV market
- Used EVs on the rise: powering the next phase of growth
- Graph 25: preference between new and used when purchasing a hybrid/electric car, 2024 vs 2023
- The growing demand for used EVs is transforming the market
- Family-friendly EVs: the future of parenthood on wheels
- Interest in type of hybrid/electric car
- Buyers play it safe when it comes to move away from petrol/diesel
- Graph 26: interest in type of hybrid/electric car, % of respondents, 2024
- Interest is shifting toward hybrids
- Graph 27: interest in type of hybrid/electric car, %, 2022-24
- Younger adults and men are early adopters of new technologies
- Graph 28: interest in battery electric car, by age, 2024
- Charging an electric car
- Home charging: the top choice for EV owners
- Graph 29: charging an electric car, 2024
- The future of EVs relies on expanding charging infrastructure
- EV charging rollout at risk of leaving rural areas behind
- Concerns about going electric
- High costs continue to hinder widespread EV adoption
- Graph 30: concerns about owning an electric car, %, 2024 vs 2023
- Price remains the biggest barrier
- The right price can drive petrol and diesel buyers to switch
- Graph 31: electric/hybrid car purchase factors over petrol/diesel for the next car purchase, 2024
- Driving EV adoption: the role of marketing, education and evolving technology
- Powering up: public charging accessibility still a major concern
- Plugging into the future: overcoming EV charging challenges
- Graph 32: concerns about owning an electric car, %, 2024
- Fast-charging revolution: EVs are charging ahead
- Attitudes towards hybrid and electric cars
- Convenience and range present opportunities and challenges
- Graph 33: attitudes towards hybrid and electric cars, %, 2024
- More is needed to deliver convenience
- A robust and reliable public charging network is vital
- Conquering range anxiety: breaking down barriers for adoption
- Measures to address range anxiety
- Building trust
- Case study highlights
- Driveway privilege: how off-road parking fuels EV adoption
- Graph 34: attitudes – “Having off-road parking makes ownership of an electric car more attractive” – agree, by household income, %, 2024
- Educate consumers about the benefits of electric & hybrid
- Graph 35: attitudes towards hybrid and electric cars – “There is more information about the benefits of hybrid/electric cars now than there was five years ago”, by age, %, 2024
- Empowered consumers: transparency drives trust
- Graph 36: attitudes towards hybrid and electric cars – agree, %, 2024
- Driving change: how sustainability is shaping consumer choices in auto
- Target tech-savvy young consumers without alienating the older cohort
- Graph 37: attitudes – “The advanced technology in electric/hybrid cars makes me more appealing to buy than standard cars”, by age, %, 2024
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Innovation And Marketing Trends
- Launch activity and innovation
- Sainsbury’s invests in EV charging
- BCA launches own Battery Health Grading system for used EVs
- Volvo introduces EV battery passport
- Technology in electric vehicles can drive consumer demand
- Tesla expands self-serve test drives to more locations across the UK
- Micro launches its compact electric vehicle
- Renault unveils affordable electric vehicle
- The 2025 Tesla Model 3 seeks to redefine electric driving with its advanced tech
- Advertising and marketing activity
- Jaguar’s rebrand focuses on creativity
- Peugeot shows off its electric vehicle range
- BYD generates recognition with UEFA sponsorship
- Ford’s “Legend is Back” taps into Eric Cantona’s return to TV
- Mercedes surpasses industry standards to show the superior safety of its EVs compared to fuel types
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APPENDIX
- Market forecast data and methodology
- Market forecast and prediction intervals (volume)
- Forecast methodology
- Report scope and definitions
- Market definition
- Exclusions
- Data sources
- Abbreviations and terms
- Methodology
- Consumer research methodology
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