CA Auto Finance Research: Over Half of UK Drivers are Ready to Go Electric
- New data reveals that 52% of UK drivers are likely to choose an EV as their next car
- While the study also shows that significant barriers to purchase still exist for UK drivers, nearly four in five (79%) said incentives would encourage them to go green
- It also reports that three quarters (75%) of current EV drivers would consider purchasing a second-hand EV, reflecting positively on the used car market
- The research is released to mark World EV Day which is celebrated on 9th September 2024
On World EV Day (9th September), new research reveals that over half of UK drivers (52%) are either likely or very likely to choose an Electric Vehicle (EV) as their next car. A number that rises to 75% when it comes to those aged 18 to 24.
The survey which examined the current EV landscape was commissioned by CA Auto Finance, the UK subsidiary of the leading multi-brand pan-European player in vehicle financing, leasing and the mobility sector, CA Auto Bank.
Despite the clear appetite from road users there is still more work to be done to reach Zero Emissions Vehicles (ZEV) mandate targets which set out how the UK’s automotive market should evolve.
As it stands, the ZEV mandate requires that at least 22% of new cars and 10% of new vans must be zero-emission by 2024, a target likely to be missed according to an industry trade body. The research identifies key pain points for current EV drivers with battery life being the biggest worry (55%) followed by accessibility of charging stations (38%) and then range anxiety (37%).
However, there’s clearly pent-up demand amongst UK drivers with almost four fifths (79%) of UK drivers stating that incentivisation would encourage them to switch to an electric vehicle, indicating a need for further government intervention to support the adoption curve.
Christian Gorton, Marketing Director at CA Auto Finance who has responsibility for digital strategy, marketing and brand relations, said: “It’s clear that the UK is divided in its opinion on electric vehicles as the overall market continues to evolve, but its longer-term future remains promising.
“Our research shows that younger drivers are particularly eager to switch to EVs and with list prices on new electric vehicles continuing to decrease, there is potential for organic growth. However, to retain existing EV drivers and encourage others to make the switch, we require a clear plan from the Government on how they will support the industry to meet its ambitious targets, as well as industry-driven solutions that make EV adoption more convenient.”
As many drivers look to continue or begin their EV journey, the study provided insights into the second-hand EV market which can offer lower cost alternatives. It reported that a significant three quarters (75%) of current EV drivers would consider purchasing a second-hand car, highlighting a buoyant environment. For those that would not, around a third are still hesitant due to residual value concerns (31%).
Christian continued: “While there is ongoing uncertainty surrounding residual values, we are seeing positive changes in the industry and expect that this will stabilize over time. Demand for older EVs is already increasing as consumer recognise that a 3-5 year old electric vehicle still retains nearly all of its original range and performance. The significant depreciation observed in recent months has created real bargains in the used EV market, gradually shifting consumer interest towards pre-owned EVs.”
In terms of buyer motivations, the new study stated that a notable 45% of current EV drivers said they were driven by a desire to reduce their carbon footprint, indicating that social consciousness is still a key priority for many EV advocates.
With 42% of EV drivers also stating they now need to plan their journeys in advance since switching from a traditional Internal Combustion Engine (ICE) car, it’s clear that infrastructure improvement is needed to support existing and future EV users.
To drive sustainable mobility forward, CA Auto Finance offers a comprehensive range of leasing and mobility plans through its subsidiary, Drivalia UK. Drivalia currently operates over 30 Mobility Stores in major airports and train stations across the UK. The objective of the group is to lead the energy transition and by 2030, have 80% of its new vehicle portfolio be made up of electric vehicles.
By the end of the year, Drivalia also aims to expand to 60 stores with over 100 electric charging stations and increase its fleet from 4,500 to over 7,000 vehicles. In the next three years, Drivalia hopes to have more than 50% of its European fleet composed of BEVs and PHEVs.
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