Demand for EVs doesn’t match the supply as private owners have been hit with a cost-of-living crisis, historically high inflation and high energy costs.
Sales of electric cars to private drivers have declined due to the reduction of financial incentives and overall uncertainty surrounding the maintenance of EVs.
In the first half of 2023, private owners were less inclined to purchase electric cars compared to the same period last year.
The SMMT report states that drivers are struggling to keep up with the UK’s “ambitious EV transition timeline.”
According to current government plans, the sale of new cars powered solely by petrol and diesel will be prohibited nationwide from 2030, and all new cars and vans will need to be fully zero-emission by 2035.
SMMT chief executive Mike Hawes believes that comprehensive measures will encourage UK households to choose electric vehicles, benefitting the industry’s recovery from the pandemic and all stakeholders.
Earlier this year, Stellantis, the parent company of Vauxhall, cautioned that the middle class cannot afford the cost of electric cars without government subsidies. The demand for EVs among private owners does not align with the supply due to the financial challenges posed by the cost-of-living crisis, historically high inflation, and high energy costs.