State of play: Analyzing the current EV market in the UK
What is the current state of the EV market in the United Kingdom? Which are the main challenges for drivers and retailers? Anila Siraj, Managing Director, Alternative Fuels Strategy at Kalibrate, answers those questions in this article.
After two years of no transatlantic travel, when I arrived in the UK this Christmas, I found myself pleasantly surprised. Not at how speedy the travel process was in the midst of Covid-19 – it was surprisingly efficient. Nor was I shocked by the “back to normal” shoppers on the hunt for deals over the festive period. It was the sheer number of electric vehicles that I saw on the streets in and around London.
In the UK alone, almost one in three (32%) newly registered cars were electric vehicles (EVs). So, the demand is growing, and growing fast.
But, as the nation accelerates towards a battery-powered mindset, it’s vital that businesses, government, manufacturers (old and new) and retailers, help make this switch as smooth as possible – a lack of infrastructure may put the brakes on rapid mass adoption.
Correcting uneven roads
Many readers, whether in the UK or the US, will empathize with the yearly battle that takes place on our roads, when the weather and general wear and tear creates potholes. These potholes inevitably last for far too long, with some being filled in and others left to wither until the summer.
It’s an analogy that rings true for the current EV market. Some areas in the UK – most notably London and surrounding areas – have witnessed serious investment in infrastructure. Others are yet to even scratch the surface of electric vehicles.
For instance, those in urban dwellings have become accustomed to seeing charging points at supermarkets, leisure centers, fuel stations and residential roads. It allows EV owners to charge out of the home, meaning they’re never far away from a power source to keep their wheels turning. However, if you’re an EV owner in the capital, your perception of the charging infrastructure will likely be skewed as a result of seeing more chargers in your day-to-day life. Currently, there are 29,318 charging points in the UK with a third in Greater London (9,477).
It’s up to car manufacturers, retailers, and local and national authorities to work together and pinpoint solutions in suburban and rural areas – namely uncovering where infrastructure is required and investing in those areas. This will embolden those looking to purchase an EV, while assuring those who are still in traditional cars that the switch can be successfully made; more than a quarter of prospective EV buyers are worried about the complexity of charging and range anxiety (27%), listing both as barriers to purchase.
Speed is of the essence
With restrictions lifting, the post-pandemic world will see a return to roads although consumer habits will have changed, especially as further ultra-low emission zones (ULEZ) have been rolled out across greater London, in turn encouraging EV adoption. For EV drivers, not only will finding a place to charge be a priority, but the speed at which they can charge will be vital.
Fuel retailers are beginning to recognize this demand, not least BP who is looking to offer 300kW charging power and an ultra-fast charging unit that powers EVs to 80% capacity in 10–15 minutes. Other providers will have to follow suit if they’re to get their foot in the door and become a consumer favourite. It will also offer an opportunity for retail. In fact, there are profits to be made, with nearly three-in-five (59%) of drivers spending more money at shops or businesses that offer EV charging. However, with only 14% of existing chargers providing ultra-rapid charge, retailers will likely have to partner with the most competitive player and the one which can provide the greatest convenience for their clientele.
Opening the dealership up to others
If you walk around a car showroom and spot an EV on display, it’s likely that it will be a small to medium-sized model. While these models appeal to a select demographic, as with all purchasing decisions, choice is key. Now, new models need to enter the market and cater to those who require a larger vehicle.
We have already seen Ford take a step into this new world by launching their electric Transit. Looking forward, we can expect around 200 models to come to market in the next two years globally; the bigger the variety, the bigger the appeal and the greater the chance of mass adoption. Although consumers look to purchase for environmental reasons, often practicality and personal preference triumph.
The UK has made great strides in the EV infrastructure and is on its way to an EV-first future. However, the UK is against the clock, and more needs to be done if we’re to avoid a situation of thousands of EVs on the roads without the infrastructure to support. The key to success – analyzing the metrics to marry up adoption rates with charging locations. Only then will mass EV adoption turn into a reality
Written by Anila Siraj, Managing Director, Alternative Fuels Strategy at Kalibrate.
