EV interest jump from fuel price spike may not last, Autotrader warns

Autotrader’s latest data shows electric vehicles (EVs) became the most popular fuel type on its platform for the first time in the three months ending May, capturing 27% of new car enquiries. The surge followed a 125% year-on-year rise in EV inquiries in April, driven by soaring petrol prices attributed to the Middle East conflict, compared to a 31% overall market increase. Despite the growth, a survey of 2,000 non-EV buyers revealed persistent barriers to adoption. Eighty-four percent cited high purchase costs as a concern, even though Autotrader data showed average new EVs were cheaper than petrol cars in March and April, with a price gap narrowing from £3,607 to just £13 in May. Charging inconvenience and insufficient local charging points were also major issues, with 69% and 65% of respondents highlighting these problems, respectively. Demographic disparities in EV confidence were also noted. Seventeen percent of women surveyed said a lack of knowledge would deter them from buying an EV, compared to 8% of men. Higher-income households (over £80,000) showed greater confidence, underscoring the need for improved awareness among lower-income groups. While used EVs are now available for around £10,000, supply remains insufficient to meet demand, particularly among budget-conscious buyers. Autotrader called for the UK government to reallocate funding from the Electric Car Grant to support the used EV market and reduce home charging costs. It also urged a delay to the proposed eVED tax. Ian Plummer, Autotrader’s chief customer officer, warned that the current EV demand spike may be temporary, citing past price-driven surges that failed to sustain long-term growth. With the UK’s petrol and diesel car ban approaching in 2035, he emphasized the need for targeted policies to ensure an equitable transition to EVs.