How fast is the UK electric car market growing? Well fairly rapidly it seems, if these estimates from the industry association are accurate. At least 98,500 new battery electric vehicles (BEVs) will be registered in the UK in 2020, according to figures from DriveElectric, one of the UK’s leading electric vehicle leasing companies.
This figure is based on DriveElectric’s own forecasts, and it will represent a significant increase from 37,850 – the number of battery electric vehicles registered in the UK in 2019. This will mean a 260% rise for BEV registrations in 2020 compared to 2019. The figure does not include plug-in hybrids (PHEVs).
DriveElectric uses its own model built from its intelligence of the UK market to forecast EV registrations. Reasons for this substantial increase in EV numbers are:
- Changes to Benefit in Kind (BIK) company car tax: there will be zero company car tax on pure electric cars from April 2020 for a period of 12 months. Switching to an EV from a plug-in hybrid could result in savings for the employee and the company in BIK, fuel and National Insurance in just one year of £4,578. (We think this one of the main drivers of demand, the huge saving in tax for fleet drivers – Ed)
- A return to company cars rather than employees taking car allowances: DriveElectric already has evidence to show that this change is happening.
- Increased availability of electric cars in 2020 compared to 2019, in part due to the new EU fleet-wide average emissions targets – selling larger numbers of EVs can help car manufacturers avoid substantial fines. (There’s no doubt that the public sector will be shamed into buying electric by the climate change lobby, even if that choice turns out to mean slower services, more man-hours lost whilst charging vans etc – Ed)
- Existing manufacturers such as Tesla will continue with a large market share and a high number of deliveries (approximately 25,000 units).
- A number of manufacturers are entering the market with new battery electric vehicles, for example PSA, with a predicted volume of 12,000 units. Volkswagen will have a big push with EVs; although the new ID won’t be ready to roll out of UK showrooms until later in 2020, other all-electric Volkswagen models will help with the firm’s numbers.
- There is growing environmental awareness, about climate change and also about challenges with local air quality; EVs help to provide a solution in both areas.
- Increasing numbers of initiatives such as Clean Air Zones are resulting in organisations considering renewing their fleets with electric rather than petrol or diesel vehicles.
However there is also one additional key factor that is responsible for the increasing shift to electric vehicles, that DriveElectric has witnessed in its trials of EVs with organisations around the UK: drivers, many of whom may initially have been sceptical about a move to EVs, vastly prefer the driving experience of electric cars and vans to that of their petrol or diesel engine equivalents after experiencing EVs.
More info at;
Be the first to comment