3:44 pm, January 26, 2023
Buyers are being turned off from considering an EV as their next car because of the ongoing energy and cost-of-living crises.
That’s according to What Car? after it looked at a year’s worth of market research taken from more than 40,000 responses.
As part of its 2022 round-up, the car-buying platform and consumer champion looked at how powertrain demand changed during 2022.
Its weekly in-market buyer research asked new and used car buyers which powertrain they were likely to purchase next.
From March until late July, What Car? found EV interest was higher for new, factory-order buyers than for petrol or diesel.
Interest in fully electric models started to decline from August, though, when inflation plus the energy and cost-of-living crises began to escalate.
Its research found that increasing energy costs were cited by a third of non-EV buyers as influencing their decision to not go electric.
Government intervention also had a direct impact on consumer confidence and any intention to buy an EV.
The two-year energy price cap had a clear impact on consumer confidence, with 20 per cent of 522 EV buyers polled saying it helped them make the switch.
But when the price cap was scrapped, with prices likely to rise this coming April, some 23 per cent of 968 non-EV buyers said in another survey that ditching the scheme had influenced their decision not to buy an EV.
After the October energy price cap, What Car? surveyed 1,654 people buyers, of which 31 per cent said they were in the market for an EV.
The following month, after it had been scrapped, What Car? polled 1,400 in-market buyers and found 30 per cent were in the market for an electric vehicle.
What Car? editor Steve Huntingford said: ‘Electric vehicle sales were the big success story last year, outselling diesels for the first time ever.
‘As our research shows, to continue that success depends on mitigating the effects of the cost-of-living crisis.
‘Importantly, government support for the industry and consumers has a clear impact on people’s vehicle choice.
‘Schemes such as the energy price cap provided reassurance for buyers, which was reflected in greater interest for EVs.
‘This is something the government should bear in mind, especially as more manufacturers continue to increase their electric offerings to meet the 2030 diesel and petrol ban.’
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
