Appetite for new electric cars in the UK DOWN by 30% in the last six months

A new report from Autotrader reveals that the appetite for new electric cars in the UK has fallen by 30 per cent in the last six months.

We’ve long bemoaned that electric cars are out of the reach of the majority of car buyers, with new EVs costing, on average, a third more than an equivalent ICE car (and used EVs £10k more than an equivalent ICE) and most buyers coming from the affluent who can afford big upfront prices.

Earlier this year, as petrol prices soared up to £2 a litre, Autotrader was seeing enquiries for new EVs running at around 27 per cent of all new car enquiries but, as petrol prices fell and electricity prices soared, enquiries dropped to just 19 per cent – a 30 per cent fall in six months.

But it’s not just new EVs suffering a big fall in interest, but used EVs too.

In the past year, interest in used EVs dropped by 12.6 per cent, and the stock of used EVs on the market has doubled as fewer buyers seek an electric car, with more stock on the market than buyers.

The Autotrader report does point out that the big disparity in prices between ICE and EV is mitigated to an extent by lower running costs, with EVs costing, on average, 12.4p a mile less to run. But if you can’t afford the upfront price in the first place that’s of little help.

Autotrader’s Erin Baker said:

Although current sales figures look positive, the rapid decline in consumer appetite for electric vehicles reveals the market is on thin ice where mass electric adoption is concerned.

There are some positive signs with running costs still in EVs favour, and more affordable models in the pipeline, particularly those from Asia. But today’s slowdown in demand for EVs translate into lower sales as we enter 2023.

There is talk that price parity between ICE and EV is close, but with a shortage of rare materials for batteries that doesn’t seem likely to happen any time soon. Although the seemingly endless rise in prices for ICE cars – and the dropping of small ICE cars from major car makers – may see apparent parity at some point, but for all the wrong reasons.