Electric cars being charged, via PAElectric cars being charged, via PA


Cost-of-living crisis is hitting EV adoption, says finance company

  • More than 40 per cent of people polled are against going electric because of high inflation
  • Many people are taking steps to reduce motoring costs
  • Consumers are turning to older vehicles because of cost and supply pressures

Time 10:32 am, June 23, 2022

The widespread adoption of electric vehicles is being put at risk because of the cost-of-living crisis.

That’s according to research from Close Brothers Motor Finance, which highlighted the pressure being put on household budgets.

A survey of 2,010 people found that more than four in 10 (41 per cent) had decided against buying an EV because of the cost-of-living crisis.

Close Brothers said the findings, which follow the government’s decision to end grants for many plug-in vehicles, raise further questions about the prospect of meeting the target to end the sale of new petrol and diesel cars by 2030.

Many people are taking at least one measure related to car ownership or usage because of purse strings being increasingly tightened.

More than a fifth (21 per cent) are cutting down on journeys, rising to a third (33 per cent) of people aged 55 and over.

And more than one in 10 (11 per cent) are turning to public transport instead of driving, with 17 per cent shopping around for cheaper fuel.

Respondents also said they were travelling on foot more often and asking their children to walk to school rather than giving them a lift.

As consumers face cost and supply pressures, figures suggest they are increasingly turning to older cars, vans and motorcycles.

Close Brothers Motor Finance’s quarterly Dealer Satisfaction Survey shows three-quarters of dealer partners put the cost of cars at the top of the list of customer priorities.

Lisa Watson, director of sales at Close Brothers Motor Finance, said: ‘We have seen encouraging progress in recent years in the transition to alternatively fuelled vehicles.

‘However, it’s clear from our findings that pressure on household budgets is putting some of that momentum at risk.

“Consumer appetite for electrification is there, but there’s an urgent need to knock down more of the barriers to AFV ownership.

‘We need to step up efforts to build charging points, train more mechanics and support affordability for a wider range of buyers. The government, with the support of industry, can make it happen.’

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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