Going electric: key consumer trends in electric vehicles

26/01/2021 | ARCHIE MACPHERSON

Electric vehicles are on the march, says Archie MacPherson, managing director of The Pilot Group. 

Despite years of consumer concerns about the affordability of electric vehicles and the lack of infrastructure available to handle them, interest in electric cars has continued to grow throughout the last year.

In fact, although manufacturers saw a significant slowdown in car sales in 2020 caused by the COVID-19 pandemic, demand for electric vehicles was up a staggering 185.9% in the UK compared to 2019 according to the Society of Motor Manufacturers and Traders.

A number of factors make the continuation of this trend inevitable. In November 2020, the UK Government put the country on course to become the fastest G7 country to decarbonise cars and vans, with a planned phase-out for the sale of conventional petrol and diesel cars pencilled in for 2030. City access restrictions, such as the Ultra Low Emissions Zone in London, or the planned Clean Air Zone in Manchester, expected by 2022, mean that the incentives to go electric will only continue to rise.

But as the prevalence of electric vehicles increases, what does this mean for the world around us and our road infrastructure?

All bark and no bite

First of all, is an increase in electric vehicles all hype?

It’s true that, compared to other European countries, consideration of electric cars is low. In a study conducted by YouGov in June 2020, only 17% of UK consumers were considering purchasing an electric car. The proportion of Brits who recommended an electric car to friends or family sat at 22%.

However, this still represents a significant increase in interest – those considering electric cars had risen 3% in six months since January 2020, and those recommending an electric car had increased six points from 16% in January 2020. This represented the largest increase of any country surveyed – a trend set to continue as electric cars join the mainstream and receive more press coverage following government announcements. Added to that, fewer than 1% of electric car owners are likely to switch back once they’ve made the jump.

Government policies, such as the roll-out of charging points and grants to install them, as well as proposed benefits such as cheaper parking and entry into zero-emission zones, are likely to have an impact. Policies to incentivise electric vehicles in Norway, for instance, have resulted in the country having the largest per capita fleet of electric vehicles.

Cost and choice

For many years, consumer choice has been limited when it comes to electric vehicles, with high-profile examples such as Tesla models squarely aiming at the high-end market. With the average household in the UK spending £1,400 a year on car purchases and financing, shelling out up to £100,000 on a new Tesla remains out of range for the majority of UK car owners.

Yet as interest in electric vehicles gathers pace, a number of manufacturers are bringing out their first electric car models, offering UK consumers many more choices than they previously had.

In April 2021 Volkswagen plans to bring out the ID 4, its first ‘global’ electric car - and as the second-best selling brand in the UK market, it’s sure to make waves. Skoda, Kia, Hyundai and Volvo are all bringing out their first bespoke electric vehicles to the market in 2021 too. Crucially, a number of these cars will be within reach for the ordinary UK consumer.

Charging

The limited availability of charging points is likely to be a key consideration for a number of consumers. A lack of public charging points, and the length of charging time required to carry out significant journeys, remains a sticking point for many.

The UK’s investments in public charging points should gradually ease the burden for electric car owners, making it easier to carry out journeys without having to scope out your destination beforehand.

Rapid charging is one development that we can expect to truly revolutionise the electric car market. The majority of UK car journeys are short ones, conducted fairly close to the home and posing little risk of getting caught out without charge. But for the widespread adoption of electric cars, it has to become easier for all journeys to be conducted without running that risk.

Yet the advent of rapid chargers will be crucial for the segment of ‘continuation of journey’ road users. Rapid chargers open up the possibility of charging a car as quickly as filling up a tank of diesel, allowing for the adoption of charging infrastructure across the highways of the UK. At present, while the charging technology for rapid charging exists, cars being manufactured are unable to take the huge amount of power offered by them, and current infrastructure needs to be upgraded to cope with the significant demand on power supply that they represent.

Conclusion

There is reason to be hopeful that electric cars will continue on this path in the coming years. Rising consumer interest, increased choice, and widespread charging infrastructure all point to a very green future indeed for the UK’s car market.

Archie MacPherson is managing director of The Pilot Group

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