Market Trends of uk electric vehicle Industry
Policies and incentives of the UK Government are driving the surge in electric vehicle sales
- Policies and incentive schemes by the UK government are driving the electric passenger car market in the country. For instance, in March 2022, the government announced plans to phase out fossil fuel-powered vehicles such as diesel and petrol cars, which will be replaced by all new zero-emission vehicles by 2035. Such factors are giving people second thoughts and shifting them to opt for electric cars. As a result, the demand for electric passenger cars increased by 18.40% in 2022 over 2021, also impacting the demand for battery packs positively.
- The government of the UK is implementing various practices to increase the adoption rate of electric vehicles over ICE vehicles. In 2023, the UK government announced the rebates and subsidies offered to consumers opting for electric vehicles. The subsidy amount varies depending on the type of vehicle being purchased, with a maximum of up to 2500 pounds on an electric car. Such offers are encouraging consumers to invest in EVs, which is expected to accelerate the sales of electric cars during the 2024-2030 period.
- Development and positive changes, such as infrastructure development in the UK electric vehicle industry, are increasing the sales of electric vehicles in the country. The UK government is committed to investing USD 1.96 billion to enhance and improve the charging infrastructure by deploying 300,000 public charge points by 2030. This will also contribute to the government’s aim to increase the electrification of vehicles in the country during the 2024-2030 period.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The UK's population is increasing steadily, driven by factors like net migration and a stable economy
- The UK's CVP is expected to increase in 2023, reflecting post-pandemic recovery, growing consumer confidence, and a shift toward sustainable vehicle options
- Interest rates for auto loans in the United Kingdom displayed a decline through 2021 followed by a rise in 2022
- The United Kingdom's EV charging network grew to 50,600 stations, driven by green policies and ambitious climate goals
- International companies are driving electrification in the United Kingdom with new EV models, in turn expanding the electric vehicle market
- The UK government has a major influence on fuel prices, and both fuel duty and VAT (standard 20% rate) make up majority of the petrol and diesel prices
- The UK's GDP per capita experienced fluctuations but is expected to rebound significantly by 2030, driven by strategic initiatives, innovation, and sustainability, signaling a positive economic outlook
- The UK's inflation, tied to post-Brexit shifts, is expected to stabilize for economic confidence
- The United Kingdom's MaaS landscape is set for a steady growth due to the consistent growth of ride-hailing and taxi services
- Declining lithium-ion battery prices is propelling the adoption of electric vehicles in the United Kingdom
- The UK used car market is expected to witness fluctuations, but the overall trend leans toward growth with potential government policies and the increasing trust in certified used cars
- The UK automotive market from 2017 to 2023 highlighted significant brand and category-specific fluctuations, resilience in luxury and heavy-duty sectors, and emerging growth in newly restructured companies
