UK buyers' interest in new electric cars drops by 65%

Government urged to offer better incentives for making the switch from conventionally fuelled cars

A Peugeot electric car plugged into a EV charging point. PA

Interest in buying new electric cars in the UK has slumped by about two thirds since the start of last year, new figures have suggested.

There was a 65 per cent drop in inquiries for the vehicles last month compared with January 2022, online vehicle marketplace Auto Trader said.

The reduction was attributed to several factors, including the cost-of-living crisis, higher interest rates for borrowing and the rise in energy prices, the company’s Road to 2030 report said.

It noted the market for new electric vehicles is being hampered by a lack of cheaper choices, with the number of models costing between £20,000 ($25,000) and £30,000 decreasing.

The analysis also stated that new EVs are an average of 37 per cent more expensive than petrol and diesel cars.

Auto Trader urged the government to offer better incentives for making the switch from conventionally fuelled cars.

It called for a reduction on VAT for public charging so it is the same rate as home charging.

VAT on domestic electricity is 5 per cent whereas motorists using on-street chargers pay 20 per cent.

Best selling electric cars in the UK in 2022 — in pictures

The sale of new petrol and diesel cars will be banned in the UK from 2030.

“These are difficult times for the UK’s road to 2030 ambitions and we are in danger of veering off track,” said Ian Plummer, commercial director of Auto Trader.

“If the government is serious about achieving its ambitions, it needs to do more.

“For example, it cannot be right that those who don’t have option of charging at home are forced to pay substantially more to charge their vehicles.

“While the extra £380 million announced in March to improve charging infrastructure will help, the goal of mass adoption is at risk unless we use the tax system inventively to spur on EV purchases and accelerate demand.”

A government representative said: “Electric vehicles continue to offer opportunities for savings through cheaper charging and maintenance costs, and we have put £2 billion into helping people make the switch.

“Recent industry figures showed continued growth in new electric car registrations, and more EVs are entering the used car market — giving people more choice for accessing affordable EVs.”