7.2 C
London
Saturday, December 21, 2024

2025: A Year of Transformation for the EV Market

  • The Electric Car Scheme forecasts a transformative year for EVs, driven by policy changes and market growth.
  • Trump’s return to office could influence global EV markets, reshaping supply and demand.
  • Can the UK scale up EV adoption to meet 2030 zero-emissions goals on time?

The Electric Car Scheme has published its projections for the EV market in 2025, spotlighting how political decisions and local targets will shape the industry. With Donald Trump set to return as US President and UK manufacturers pushing for a 28% EV sales goal, the sector is poised for rapid change.

Meeting the 28% EV Sales Goal

Data from the Society of Motor Manufacturers and Traders (SMMT) reveals encouraging progress, with battery electric vehicles making up 20.7% of deliveries by October 2024, compared to 15.6% a year prior. If this growth persists, the 2025 target of 28% market share could signal a breakthrough in EV adoption.

Used EV Market Expands

The growing used EV market is also gaining traction. The Electric Car Scheme reports that since launching its used EV salary sacrifice programme, over 50% of its sales now come from pre-owned electric cars. This surge is attributed to the falling costs of used EVs, addressing affordability – the primary barrier for 68% of prospective buyers. As leases end and newer models enter the market, second-hand EVs will play a pivotal role in expanding access.

Charging Infrastructure Boom

By mid-2025, the UK will boast over 100,000 public EV chargers, significantly outpacing petrol stations. The increasing availability of rapid and ultra-rapid charging points is expected to alleviate range anxiety, while advancements like off-peak smart charging further reduce running costs.

Impacts of Trade Wars

Donald Trump’s presidency may unexpectedly benefit the UK EV market. The removal of tax credits in the US and higher tariffs could make foreign-made EVs less attractive to American buyers, prompting manufacturers to focus on other markets, including the UK. This shift could see more affordable Chinese EVs boosting UK adoption rates.

Thom Groot, CEO of The Electric Car Scheme, said:
“The electric vehicle market is on the verge of a major transformation by 2025, and it’s an exciting time for both the industry and consumers. With battery technology advancing and governments around the world ramping up support, we’ll see EVs become increasingly accessible and affordable. As cheaper Chinese EVs become available, and the used EV market matures, we could see EVs available for less than £200 a month, a much more affordable price point.

“EV uptake was never going to be linear, like many things it goes through peaks and troughs, but we could be on the cusp of a significant jump as affordability increases rapidly. The UK has a long way to go to reach the 2030 target, but there is significant desire to achieve this from consumers. This is exactly why we set up The Electric Car Scheme, to help make it simpler and cheaper to get behind the wheel of an electric car.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More Stories

Related Articles