10:38 am, February 27, 2023
A new report has called on the government to do more to encourage EV uptake or risk motorists missing out on a whopping £9bn of savings.
The Energy and Climate Intelligence Unit (ECIU) says that the used EV market could be drastically shrunk as a result of a slower roll-out of new electric cars.
The non-profit organisation says that would leave drivers on lower incomes priced out of going green and force them into paying more to continue running ICE cars.
A study by the ECIU estimates that if the government sticks to its current eco targets, there will be 2.1m fewer used small and mid-sized EVs on sale by 2033, compared with a scenario in which ministers adopt the SMMT’s ‘high’ EV sales projections.
The upcoming ZEV mandate require OEMs to increase the proportion of new cars and vans they sell in the UK that are zero emission, which mostly means pure EVs.
The government’s latest proposal is for the level to be set at 22 per cent for 2024, rising each year – including to 38 per cent in 2027 – until 2035 when new ICE sales will be banned.
ECIU analysis of an outlook produced by the SMMT suggested that in a scenario where take up of EVs is ‘high’, their market share would hit 34 per cent in 2024, and 60 per cent in 2027.
The organisation also found that used small to mid-sized EVs can save their owners between £500 and £800 a year in running costs compared with petrol equivalents.
That led to a calculation that a reduction in available used EVs would cost UK motorists around £9bn in missed savings by 2043.
ECIU transport analyst Colin Walker said: ‘Even with record high electricity costs driven up by the gas crisis, EVs are still around three times cheaper to run than their petrol equivalents.
‘But with 82 per cent of car sales in the UK being second-hand, this market is critical if many more families across the UK are going to be able to access these savings.
‘If government policy on new EVs goes slow, the growth of the second-hand EV market will be held back, potentially consigning families to more expensive motoring.’
The ECIU believes manufacturers could choose to sell more of their EV stock in the UK if the country sets a tougher ZEV mandate than the European Union.
A Department for Transport spokesman said: ‘We’re working closely with industry on the path to all new cars being zero emission by 2035, and carefully considering any issues raised as we consult on our mandate.
‘More widely, we‘ve put more than £2bn into helping consumers transition to electric vehicles.’
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