UK car dealers have stressed the need for more government support for EVs and the continued benefits of hybrids beyond 2030 amid a pessimistic market outlook.

Conducted as a government consultation seeks views on the ICE phase-out date and ZEV mandate, the research by the National Franchised Dealers Association (NFDA) across its members offers valuable insights into the challenges expected in the year ahead.

Many dealers highlighted the need for government support on electric cars, including incentives such as grants and investments in charging infrastructure.

Half (50%) of respondents noted that the number of discounts offered on EVs have ‘increased dramatically’ in the past six months, while 57% confirm they have offered incentives to customers such as free charger installation.

Asked about challenges for the year ahead in a multiple-choice question, 87% of respondents identified ‘cost’ as one of the most prevalent reasons given by customers for not considering purchasing an electric vehicle (EV), tied with ‘anxiety around lack of chargers’ (also 87%). This has been a recurring concern, with consumers in NFDA’s 2024 Consumer Attitude Survey also citing the high cost of EVs as the main reason for not considering an electric vehicle.

Sue Robinson, chief executive of the National Franchised Dealers, said: “The transition to EV is a generational shift for the industry and NFDA members are supportive of the decarbonisation of transport.

“With the Government currently consulting on the phase-out date/ZEV mandate, dealers are calling for stronger support, including grants and investment in charging infrastructure, key issues which NFDA have repeatedly advocated on. The advantages of hybrids beyond 2030, along with these insights, will be highlighted in NFDA’s response to the consultation.”

The survey, which received 46 responses from various franchised dealership groups across the UK, representing a total of approximately 165 sites, also saw dealers express a bleak outlook for 2025, with 71% selecting ‘pessimistic’ in response to how they view the overall trading environment for the year ahead, while 29% were ‘slightly optimistic’.

‘Running costs’, which include business rates and Employers’ National Insurance, was ranked as the most important issue in 2025 with 52% ranking it as their top choice. This was followed by the ‘ZEV mandate’ (31% ranking it as their second choice) and ‘charging infrastructure’ (34% ranking it as their third choice).

The NFDA said the concern was expected, given the upcoming rise in Employers’ National Insurance contributions from 13.8% to 15% in April 2025, and also warned that the introduction of vehicle excise duty for electric vehicles from April was a further worry.