UK consumers are turning back to petrol and diesel cars, as the drive to low carbon vehicles starts to stall.
Business insights provider EY published its Mobility Consumer Index in December, and it reveals that 41% of new and used car-buyers in the UK intending to purchase a vehicle in the next two years are more likely to buy an ICE (internal combustion engine) vehicle. This is an increase from 36% in 2024.
Fewer than one-in-five (19%) are interested in buying a battery electric vehicle (BEV), down from 23% in 2024. 19% also said that they are looking to buy a hybrid next, down from 27%, with 10% of respondents indicating their preference for a plug-in hybrid electric vehicle (PHEV), in line with last year’s figure.
Expensive upfront purchase costs were the main reason for the unpopularity of EVs. Fears over limited range and expensive battery replacements were the other most prominent factors for choosing not to go electric.
Maria Bengtsson, UK and Ireland mobility leader at EY, said: “UK BEV sales have seen significant growth in recent times, so it is surprising that the latest UK Mobility Consumer Index indicates a shift in preferences back towards petrol and diesel vehicles.”
Although BEV market share in the UK continues to trail the 28% zero emission vehicle (ZEV) mandate target, Bengtsson says these figures “shouldn’t be a major cause for concern and there are still reasons for optimism”.
She argues that “encouragement” can be taken from the Autumn Budget.
With the Chancellor announcing provisions to improve the affordability of BEVs and enhance charging infrastructure, including an additional £1.3 billion of funding towards the electric car grant, Bengtsson says this should help address some of the top concerns that UK respondents have cited.
However, she warned: “The new mileage-based tax on EVs could prove a barrier to demand, and with uptake still lagging behind legislation targets, more may need to be done to incentivise and accelerate demand for BEVs among consumers.”
