The AA has released a new study emphasizing the need for more proactive measures to encourage the adoption of electric vehicles (EVs) in the UK.
The study, launched on April 10th, suggests that while the government’s 2030 ban on new petrol and diesel car sales addresses supply-side issues, it is not enough to stimulate consistent demand among drivers. The current approach has been primarily focused the supply of EVs. Government policies and mandates, like the zero-emission vehicle (ZEV) mandate, are designed to influence the availability of EVs, with an assumption that demand from consumers will naturally follow.
However, the AA’s research indicates that demand has not matched the available supply. This disconnect poses a problem for both the automotive industry and the government’s climate goals. The AA’s findings suggest that a significant portion of drivers feel left behind in the transition, with their concerns needing to be addressed to facilitate progress. The AA understands the importance of the EV transition, particularly in the context of the Climate Change Committee Report** advocating 80% of cars should be electric by 2040.
Affordability and the Second-Hand Market
The AA’s analysis stresses the necessity of affordable EVs. With many drivers opting for used cars, a robust second-hand market for EVs is crucial. Unfortunately, the system to support drivers in this area is underdeveloped, which is damaging EV owner advocacy even from some of the early adopters.
Diverse Driver Perspectives
The AA’s research*** reveals diverse perspectives on EVs among drivers:
- Rejectors: 22% who are opposed to EVs and will not get one.
- Doubters: 20% who are neutral or unlikely to consider an EV currently or in the future.
- Potentials: 52% who are likely to consider an EV within the next five years.
- Adopters: 7% who own or have previously owned an EV.
The study emphasizes the need for differentiated approaches and incentives tailored to each group. Negative views may be influenced by misinformation. Many drivers are confused by the transition, with some of the misconceptions including:
- A lack of awareness that the sale of internal combustion engine (ICE) cars is being phased out.
- A misunderstanding that all petrol and diesel sales, including used ones, will be banned.
- A belief that manual EVs are available.
- A lack of experience with EVs among the majority of ICE drivers.
Key Findings and Recommendations
The AA is uniquely positioned to address driver challenges throughout the EV lifecycle.
- EV Breakdown Rates: Breakdown data show that running out of charge incidents are decreasing and comparable to running out of fuel in ICE vehicles. Fewer than 2% of all EV breakdowns in 2024 were related to running out of charge, compared to roughly 1% of ICE vehicles running out of fuel.
- Driver Sentiments: Even current EV drivers are cautious, recognizing that EVs are not for everyone yet.
- Cost Barriers: New EVs are more expensive on average than petrol vehicles, though costs are decreasing. Second-hand EVs make up a small part of the market but are experiencing significant growth.
- Government Support: Many EV drivers feel abandoned by the government. Infrastructure is complex and fragmented. Mandatory changes are being enforced with little support.
- Second-Hand Market: The average value of a used EV is higher than that of petrol cars, and prices have fallen. The British Vehicle Rental and Leasing Association (BVRLA) states there has been a 60% drop in used EV prices since 2022.
- Charging Infrastructure: Most drivers do not have access to home charging. Inconvenience as a major disadvantage of EVs.
AA’s Recommendations
The AA has put forth several recommendations:
- EV Drive UK Public Awareness Campaign: A coordinated public awareness campaign, led by the industry and the government, to address the needs and doubts of all driver segments. This should provide reliable information.
- Lower Costs: Targeted incentives should be implemented to make EVs more accessible. Tax cuts for at home charging, as well as the car itself, would help. Lowering VAT on public chargers to match the rate on home chargers would make EV access more fairly distributed.
- Boost Second-Hand Market: The AA supports the government’s proposal for battery health passports, which would make used EVs more trustworthy.
- Allow Plug-In Hybrids: Allowing new plug-in hybrids between 2030 and 2035 as a stepping stone for drivers who are hesitant to switch to full EVs is helpful.
- Improve Charging Visibility: Policymakers must reduce red tape to allow consistent charging infrastructure to enhance the driver experience and improve perception of EVs.
- Enhance the secondary aspects of EV driving: Focus on maintenance, vehicle repairs, and insurance. Addressing issues such as resale value, insurance costs and maintenance delays is crucial to improving the overall EV ownership experience.
Jakob Pfaudler, AA CEO, said: “From opening the first filling station and erecting the first road signs, The AA has always led on motoring innovation. Our message to government is more needs to be done to make EVs accessible for everyone. Generally drivers are hesitant but most are not hostile to the change. The AA is in a unique position to help as we deal with drivers throughout the driving life-cycle from learning to drive, buying, insuring, and repairing their cars.“Our research shows many people are confused by the transition which is not surprising as the main catalyst for change, the ZEV mandate, only governs supply but does little to encourage demand for EVs.“The ambitious goal of the Climate Change Committee that 80% of cars and 74% of vans should be electric by 2040 shows how much needs to be done to get there.“The AA, as a trusted brand with 14m members, is in a great position to help government and drivers make this transition which is essential if we are to reach our climate goals. As a starting point, a government-backed awareness campaign, a healthy used EV market, and some targeted incentives are needed to charge up the transition.”
* AA Viewpoint Report ‘What do drivers want from the EV transition’ and summary of research findings is accessible here: AA EV Viewpoint| AA
** https://www.theccc.org.uk/publication/the-seventh-carbon-budget/
*** The research supporting the report has been collated from The AA’s operational data, collected up to 31 January 2025, The AA Yonder online poll of 14,074 drivers conducted between the 14th to 21st January 2025 and our quantitative survey in field 25th October to 8th November 2024 and has been supplemented with qualitative research prior to and after this.
