The electric vehicle industry has been through a whirlwind of developments in the past few years. Drax Electric Vehicles’ Adam Hall, director of energy services, and Naomi Nye, head of sales, explore what next year has in store for the EV market.

Battery electric vehicle registrations rose 21.6% in 2024

2024 solidified key milestones, like promising EV adoption rates among businesses and critical advancements in battery technologies. These have laid the groundwork for an exciting year ahead with growing momentum across the UK. However, challenges remain, from regulatory uncertainties to infrastructure gaps.

As we enter 2025, SMMT’s latest data reports a 21.4% year-on-year increase in battery electric vehicle (BEV) registrations last year, with plug-in hybrid electric vehicles (PHEVs) experiencing 18.3% growth. Despite maintaining a 52% market share in 2024, petrol vehicles are gradually slowing, with a decline of 4.4% year-on-year.

So what does this year have in store for the EV market?

Fleet electrification will continue to dominate EV adoption 

The Department for Transport reported that businesses accounted for 80% of PHEV registrations and 83% of BEV registrations in the first half of 2024. One in five (21%) new company-owned cars during that period were electric, aligning closely with the zero-emission vehicle (ZEV) mandate targets.

“This is great news for the EV fleet industry,” Nye adds. “At Drax, we are committed to continue supporting businesses across the UK with their electrification goals, from consultancy to infrastructure deployment, making the transition seamless.”

However, the latest car registration data shows that fleets are the only group to see growth in new registrations, increasing by 12.9% year-on-year. Meanwhile, private and business registrations have fallen by 9.1% and 4.2%, respectively.

“The ZEV mandate sets ambitious sales quotas for electric vans and cars,” says Nye. “It’s a driving force behind the rapid pace of fleet electrification, compelling manufacturers to scale up their supply of electric light commercial vehicles (e-LCVs) and cars to meet demand and avoid penalties. This should continue to increase the availability and variety of EV models across the board for fleets.”

Further progress is coming for electric vans and HGVs  

While electric cars often dominate headlines, Nye highlights that 2025 could be a breakthrough year for advancements in electric vans and heavy goods vehicles (HGVs).

Naomi Nye, head of sales at Drax

“Historically, commercial van EV adoption has lagged because available models haven’t met operational needs,” she explains. “However, with new and more capable options entering the market and regulatory deadlines looming, adoption is set to accelerate.”

As for electric HGVs, there are currently a few hundred now on UK roads. The sector remains in its infancy compared to over 400,000 diesel-powered trucks (approximately) that dominate the landscape.

The UK government is actively funding trials for zero-emission HGV projects to drive forward this industry, addressing challenges like range and infrastructure requirements. “These developments are pivotal,” says Nye. “They will demonstrate the feasibility of electric HGVs and hopefully make fleet electrification more accessible to a wider range of sectors.”

Looking ahead, collaboration is key. Nye highlights: “To truly decarbonise, we need more than just technology. We need the industry to work together to overcome barriers, from operational challenges to alternative fuels.”

By integrating solutions that improve both infrastructure and driver satisfaction, the UK can accelerate its journey toward zero-emission logistics.

Tailored electrification solutions are essential  

There’s no one-size-fits-all to electrification and Nye stresses the importance of customised strategies.

“Different businesses, spaces, and locations have unique requirements. A shopping centre serving tens of thousands daily will need vastly different solutions than a small office-based fleet.”

Bespoke electrification strategies should recognise that understanding an organisation’s operational requirements is crucial to developing a suitable plan.

Nye emphasises that comprehensive services like vehicle selection, charging infrastructure installation, and ongoing charge management are vital to ensure UK businesses’ needs are considered and met at every step.

“The future of EVs requires tailored, end-to-end solutions that suit unique needs. This is exactly what we strive for at Drax Electric Vehicles when supporting businesses with seamless strategies and simplifying their electric journey,” she adds. “We leverage advanced data analytics to optimise fleet performance. Our team ensures an agile approach to planning and scalability for businesses managing diverse vehicle requirements. For decision-makers to feel confident in their efforts, long-term sustainability and immediate needs must be balanced.”

Charging infrastructure is expanding, but destination charging must keep up  

The UK government’s target of 300,000 public charge points by 2030 demands rapid progress in expanding infrastructure. However, gaps remain, especially in rural areas and destination charging sites like hotels.

Nye highlights the growth opportunities here for 2025: “Destination charging, particularly at hotels, shopping centres, and leisure sites, lags behind public and workplace charging. However, it represents an untapped market that could give businesses a competitive edge while enhancing EV accessibility across the country.”

Workplace charging is another bright spot. Drax’s Driving Change Report 2024 found that almost half of UK employers have installed EV chargers, and a third planned to make further investments in the following 12 months.

Nye notes that the UK is also making strides in developing public charging infrastructure, but more must be done in the coming years. Financial support and simple access to funding are especially important.

“Back in 2023, the £381m Local Electric Vehicle Infrastructure (LEVI) fund and £15m On-Street Residential ChargePoint Scheme (ORCS) were announced to support thousands of new charger installations. Whilst Labour has made no changes so far, Drax’s recent FOI request revealed that local authorities still report financial issues with upgrading and expanding public charging in 2024,” she says.

In recent years, collaboration between the public and private sectors has grown to boost infrastructure expansion. Nye confirms that this trend will likely continue in 2025.

Demand-side response is key for the electric future, but often forgotten 

For the UK energy grid to run smoothly, electricity supply and demand must match in real time. Any imbalance can lead to blackouts or damage to infrastructure, as the grid operates at 50Hz, where even a small fluctuation of 0.2% can cause major disruptions.

Adam Hall, director of energy services at Drax Electric Vehicles

Adam Hall explains: “This challenge is increasing with the growing use of renewable energy, which depends on favourable weather conditions. However, demand-side response (DSR) solutions will be the future of balancing supply and demand by optimising the use of electric assets.”

EV fleets hold a unique position because these vehicles often remain plugged in for extended periods, particularly overnight, when demand is lower.

“This predictable and controllable charging pattern makes for the perfect participant in DSR initiatives, contributing to grid stability while reducing fleet costs.”

Hall notes that fleets don’t have to navigate DSR markets on their own.

“With a trusted partner, you can access DSR markets with ease. We strategically align your business requirements with market insights to build the optimal strategy,” Hall shared. “Previously, we supported Ford and FI Real Estate Management to reduce their collective power demand, including optimising their EV fleets. This additional flexibility helped balance supply and demand amid the energy crisis caused by Russia’s invasion of Ukraine.”

Public perceptions of EVs are warming  

“Research indicates a significant increase in EV interest and support,” Naomi Nye observes. “However, it’s important to continue providing simple guidance and combating misinformation, as many businesses and consumers are still beginning their journey.”

The 2024 National Travel Attitudes Study revealed that almost two in five respondents (37%) rated their EV knowledge as high. Industry bodies such as ChargeUK are unified in raising public awareness of the benefits of EV adoption to continue growing positive attitudes towards EVs.

Nye also noted: “The survey also found that almost half of respondents (49%) planned to buy a BEV or PHEV for their next car. With increased accessibility to affordable EV models, public acceptance will grow.”