The Green Insurer thinks the EV market in the UK has reached a tipping point. IE thinks so too, but not in a good way.
The reality is that many drivers know how poor the range is in winter or wet weather, they also feel ripped off by charging points at motorway service areas, which exactly where you need them for long journeys. If you buy or lease a new EV then depreciation can be substantial. Then there’s the insurance – even the wealthy are shocked at being quoted £5000-£9000 a year to insure an EV 4X4 in London.
Here’s the word from the Green Insurer, who reckon their survey reveals plenty of enthusiasm for battery cars;
The electric car market is reaching a tipping point for the majority of UK drivers, with 5% of motorists surveyed saying that they already own an electric car, 9% reporting that they will definitely make the switch and 47% saying they will consider an electric car, finds new research from The Green Insurer, which is focused on helping drivers reduce carbon emissions and drive in a more environmentally friendly way.
INTENTIONS ARE NOT SALES
The key reasons for the change in buying intentions are that electric cars are better for the environment, according to 58% of those who have either bought or are considering purchasing an electric car, the fact that petrol and diesel cars are being phased out by 2035 (47%) or that motorists want to reduce their carbon emissions (42%).
Other reasons given are that it’s become easier to charge electric cars (26%), that models are more reliable than in the past (18%) and that prices of electric cars have fallen far enough to make them affordable (10%).
Despite those improvements, 69% of motorists that have owned or plan to own an electric car are still concerned that access to charging stations is a problem, while 67% say that they worry about running out of charge on long journeys. A further 32% believe insurance is more expensive than for petrol or diesel cars, and 18% think that there is a more limited choice of insurers.
REPAIRS AND SERVICING
Getting repairs is also perceived to be problematic by 31% of drivers who have bought or plan to buy an electric vehicle, and the same number (31%) think there is a limited used electric car market.
Those who do not intend to buy an electric car or are still unsure – 39% of those surveyed – have similar concerns: when asked what puts them off making the switch 69% said electric models are more expensive than petrol or diesel equivalents, and 68% had concerns about access to charging stations.
While 39% of those not considering a switch said they don’t believe that electric cars are any better for the environment, this falls to just 13% of motorists aged 18-24, and rises to 43% of motorists aged 55-64. Younger motorists aged 18-24 are also more likely to see the Government’s delay on the ban on new petrol and diesel cars to 2035 as a backwards step, with almost a third (31%) agreeing compared with just 14% of drivers aged 65 and over.
ARE THEY REALLY CHEAPER TO RUN?
When asked whether they had saved money on the annual cost of driving, the majority (87%) of those motorists that had already switched to running an electric car said that they had made either slight (39%) or substantial (48%) savings. The majority (43%) had achieved cost savings of between 20% and 30% a year, and a further 30% of drivers had saved more than 30% a year.
IE COMMENT
At present EVs are zero rated on VED tax, but that changes in 2025, as a £165 per year charge comes in. Many Councils have already abolished free parking for EVs, concerned that the heavy (2.5 tonnes is typical) are damaging urban roads faster than smaller petrol cars. In short, future EV owners are going to have pay the taxes that today’s petrol and diesel drivers pay in fuel and VED duty, or future governments will run out of cash. It really is that simple.
All cars have an impact on emissions during their build, lifespan and disposal. Expect future climate or green taxes on the disposal and recycling of lithium battery packs, which is inevitable as they simply stop holding a charge after a given number of cycles – that’s basic physics. Where do one, two or three million battery packs go every year, who pays for that?
Paul Baxter, CEO, The Green Insurer, said: “Recent news that the number of electric cars in the UK has reached one million demonstrates that appetite is growing for alternatives to traditional vehicles. And as our research shows, concerns about the environmental impact of driving a petrol or diesel vehicle are a key motivation, especially for younger drivers.
IE Note; Total vehicle parc in the UK is 36million, says the SMMT, so 1 million battery cars after 20 years of aggressive marketing and government subsidies isn’t that impressive. Especially as many of those cars are leased, often by companies and the public sector, who are obliged to go EV to meet ESG and Net Zero targets.
“Concerns about charging stations and making long journeys will naturally recede in line with market growth, and cost savings reported by motorists who have already made the switch will be another important incentive going forward. As part of our service, we also pledge to offset 1/10th of the additional CO2 emitted to make an electric car each year a customers is insured with us. If they stay with us for 10 years, we will have offset not only the emissions from your driving, but also the additional emissions from manufacturing the car compared with the emissions from making a traditional combustion engine vehicle.”
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