UK government needs to step up efforts to incentivise EV transition – Deloitte

Analysts at Deloitte have called on the government to increase efforts to support the transition to electric vehicles, after sales of EVs “plateaued’ at the end of 2023. Sounding a note of caution after otherwise positive figures for new car sales, Deloitte said the UK would need to incentivise battery electric vehicles in order to meet the 22 per cent market share target, while access to sufficient public chargepoints remains a concern. Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: “While consumers have continued to purchase new cars in what’s been a strong year of growth for the industry, sales of electric vehicles (EV) have been positive but started to plateau towards the end of the year.

“To increase the market share of battery electric vehicle (BEVs) from the current 16.5 per cent to the required 22 per cent as set out in the zero-emission vehicle (ZEV) mandate which is now in effect, efforts to incentivise the switch to electric need ramping up.

“Whilst the rollout of superfast charging infrastructure is happening, there is a need for more accessible public charging. The majority of people considering an EV car want to charge their vehicles at home, which makes charging a major barrier to purchase for consumers without access to off-street parking.

“A Deloitte survey shows that consumers who either already have access to a private charging point, or have off-street parking suitable for the installation of a charging point are two times more likely to consider purchasing a BEV as their next car compared to those without.

“The last year has seen a number of different EV models become available, giving consumers more choice in both the new and used car market. Residual values of EVs are coming down which is creating a better second-hand car market, offering a solution for cost conscious consumers. But this will inevitably impact sales of new EVs, which will have a higher depreciated cost.”