
Intro
This week, Pod Point, an electric vehicle charger supplier, made statements about the disappointing demand in the private electric vehicle market. The UK's quota for electric vehicle sales is increasing year on year to hit 80% by the end of the decade (Millard, R. (2025)). However, the market is lagging. Although new EV registrations are growing, as is the electric market share, it is not enough to stay on the government's track; last year, the EVs hit a record volume and market share of 19.6% (Plarge (2025)). Unfortunately, this figure lies below the government's target of 22% for 2024. According to Pod Point, the issue with the market is the lack of demand from private consumers, with only one in ten choosing electric in 2024 (Millard, R. (2025)). Car manufacturers are pleading with the government to step in as their efforts to move to electric production come with very high costs under the Zero Emission Vehicle (ZEV) mandate.
Issues
Despite the government's best efforts to make EVs more attractive to UK consumers, most are still favouring the classic diesel and petrol cars; there are a few reasons for this. Firstly, and probably most importantly, is the cost. It is no secret that electric vehicles come with a much higher initial price point than their Internal Combustion (ICE) Engine alternatives, with the average cost of a new EV at £46,000, according to Yurday, E. (2020). Furthermore, due to the young nature of the EV market, the second-hand market is minimal, which means the opportunity for discounted options is small. There is also the consideration of insurance, which again tends to be higher for EVs due to the repair and replacement cost of electrical components. Another reason for the dwindling demand of the private market is 'range anxiety'; this is the worry that there is insufficient infrastructure in the country to allow the use of an EV to be as seamless as an ICE car.
Consequences
The government is behind on its target and, therefore, the path set out in its ZEV mandate; however, rather than attempting to boost demand further, it may relax the quota on manufacturers. In 2024, the discounting of EVs is reported to cost £4.5 billion to car manufacturers, so it is understandable why they are disappointed with the lack of demand. However, a study done by Transport and Environment (T&E) said that due to flexibilities built into the mandate, only one manufacturer would have to resort to buying "credits" from rivals to avoid fines, and therefore, the mandate is going to plan (Jolly, J. (2025)). Whatever the case, the move to ZEVs is slow and begrudging at a time in the world when people are struggling to cope with the high cost of living; unfortunately, being green takes a back seat, especially when our transatlantic cousins seem to be completely sacking the idea.
Addressing Challenges
Evidently, the following stages of the ZEV introduction will be no easy feat and will require a shift from everyone. Firstly, there needs to be a societal shift to recognise how serious the climate issue is; this is gradually taking place as everyone is much more conscious and aware of their footprint than they were ten years ago. However, this gradual change may not be enough; it needs to be accelerated by the other factors in this equation: the government and suppliers. An EV charger supplier brought up the uproar about the lack of demand but was quickly backed in chorus by large vehicle manufacturers who were disappointed as it damaged their pockets. Although this is the case, the claim that the discounts aren't working may be false. Research performed by T&E argues that the discounts are working, so this may just be a ploy to improve their margins. The government must keep this in check and frequently review its plan and the progress the nation is making; if they are required to step in, there may be increased pressure on public finances, but this is a trade-off that they committed in the conception of the ZEV mandate.
Conclusion
The move toward zero emissions is hard but vital, and whether we like it or not, it will likely be forced on us by governments and markets in the coming years. As previously mentioned, there is also a societal shift happening along with these pressures as people feel personally and collectively responsible for the health of the planet, especially younger generations, as they aren't relying on altruism as motivation. Therefore, it is gradually becoming more available and more attractive to 'go green', and a huge step we can take in this journey is to use electric vehicles. The sooner we adapt, the better, and there are ways to make this purchase without a massive lump sum payment; there are methods such as trading in a current vehicle or considering asset finance. Whatever the approach, in the long term, the move will be better for your conscience, the planet, and your finances, as electric vehicles cost much less to run.
Reference List
Jolly, J. (2025) UK charging firm warns over changes to electric car sales amid ‘difficult’ market, the Guardian. The Guardian. Available at: https://www.theguardian.com/environment/2025/jan/20/charging-firm-electric-car-sales-uk-ev-target-zev-mandate? (Accessed: 27 January 2025).
Millard, R. (2025) Weak UK demand for electric vehicle charging sparks investor alarm, @FinancialTimes. Financial Times. Available at: https://www.ft.com/content/1de60a98-565f-4e45-aba4-894fb0d2e0f5 (Accessed: 24 January 2025).
Plarge (2025) Record EV market share but weak private demand frustrates ambition, SMMT. Available at: https://www.smmt.co.uk/2025/01/record-ev-market-share-but-weak-private-demand-frustrates-ambition/
Yurday, E. (2020) Average Cost of an Electric Car UK 2020, Nimblefins. Available at: https://www.nimblefins.co.uk/average-cost-electric-car-uk.
Comments