Potential EV buyers at "all time high" but cost of living hitting sales

14% of drivers are planning to switch to an EV when they next buy a car - a figure which is up from 10% recorded last year

New figures from the RAC's annual motoring report were gathered from 3102 UK drivers

The number of drivers planning to buy an EV as their next car has risen to an all-time high, but they're holding back on purchases because of the cost of living crisis, the RAC’s annual report on motoring has revealed.

The report, which gathered results from 3102 UK drivers through a 30-minute online survey, showed that 14% are planning to switch to an EV when they next buy a car - a figure that's up from 10% in 2021. 

However, the number of drivers who said they were going to buy a new car in the next five years dropped to 56% from 73% in pre-pandemic 2019. Almost half of the respondents (47%) said the change in used-car prices changed their decision. 

Meanwhile, 38% said the price of EVs was an issue this year, down significantly from the 57% figure in 2021, while a fifth (19%) said they were planning to move to a conventional hybrid. One in ten (10%) have decided on a plug-in hybrid. 

The number of people who said they would choose petrol dropped from 45% in 2021 to 41%, while diesel continued to decline, dropping from 16% in 2021 to 13% this year.

Lower running costs were found to be more significant than switching due to environmental concerns, appealing to 64% compared with 57%.

Despite the rise in the number of drivers who are intending to switch to an EV, the report also showed rising levels of buyer insecurity and hesitance. Just 15% said they would buy an EV in the next five years, while 21% believe they will be in an EV in five to 10 years.

The proportion of drivers who didn't know when they would buy an EV increased from 36% in 2021 to 42%, with the RAC partly attributing the rise in uncertainty to the rising cost of living. 

Just under half (47%) of the respondents said the increasing cost of electricity was offputting, while 46% had concerns about making long journeys.

The report also showed the strength of the UK’s EV charging network is also a concern among drivers. 

Some 60% said they didn’t think the UK had enough charging points, while 51% had concerns about the network’s reliability. Meanwhile, 49% said they were waiting for EVs' ranges' to improve. 

“It’s very worrying that there are currently so many factors hindering take-up,” said Simon Williams, EV spokesman for the RAC. “A combination of the effects of Covid, ongoing availability issues in the new-car market due to a global microchip shortage and the squeeze on household finances brought about by the cost-of-living crisis mean people keen to get into an EV are likely to put off doing so.

“We must not let the growing desire to go electric be derailed by rising electricity costs, higher interest rates and vehicle-availability issues.”

The RAC has called on the government to reintroduce the £1500 Plug-in Car Grant, while also reducing the rate of VAT on public chargers, to encourage car makers to introduce cheaper EVs and increase EV uptake. 

“The government should also reduce the rate of VAT on public charge points to 5% to ensure the third of people who can’t charge at home are not disadvantaged," Williams said. 

"With the ban on the sale of new petrol and diesel cars just over seven years away, it’s vital as many people as possible are able to switch to electric, and this will only happen if EVs become more affordable."