UK consumer intent for electric vehicle purchases continues to build while interest in petrol and diesel vehicles remains in decline, according to EY’s latest Mobility Consumer Index.

Almost 60% of drivers in the market for a new vehicle would be up for an EV

More than half (59%) of UK respondents intending to buy a vehicle in the next two years said their preference would be a battery electric vehicle (BEV), hybrid electric vehicle (HEV) or a plug-in hybrid electric vehicle (PHEV). That’s up from 54% in 2023 and marginally above the average across the major auto markets surveyed (58%).

Specifically, 23% said they were most likely to buy a BEV next, up from 19% last year, and 27% said they would opt for an HEV, up from 25% last year. Meanwhile, 10% of respondents said they were most interested in purchasing a PHEV, in line with last year’s figures.

In contrast, only 36% of UK respondents in the market for a new vehicle are intending to purchase an internal combustion engine (ICE), down from 41% in 2023 and slightly lower than the average across the major auto markets surveyed as part of EY’s latest Mobility Consumer Index (37%).

The main factor for increased interest in EVs was environmental concerns, cited by 35%, followed by 31% who mentioned high fuel prices, and 27% identified rising penalties on ICE vehicles such as additional taxes.

Overall, 56% of UK respondents said they were either extremely likely or somewhat likely to purchase a vehicle in the next two years, up significantly from last year’s figure of 45%, and the highest figure of any European country.

EY said the declining consumer interest in purchasing petrol and diesel vehicles was particularly significant given ongoing concerns about private driver demand for EVs.

But David Borland, EY’s UK & Ireland automotive leader, said incentives for consumers to make the EV switch remained paramount to ensure such increasing EV buying intent is converted into increasing sales.

The SMMT and 12 major vehicle makers urged the Chancellor earlier this month to implement measures to accelerate the EV transition, such as temporarily halving VAT on new EV purchases, scrapping the VED ‘expensive car’ tax supplement for ZEVs, due next year, and equalising VAT on public charging to match the 5% home charging rate. They also urged Rachel Reeves to maintain and extend the business incentives that are working, including Benefit-in-Kind and the Plug-in Van Grant.

EY’s research also showed barriers remain to the EV switch. These include expensive upfront purchase costs, with 37% of survey respondents saying this was a reason they might not go electric; up from 36% in 2023.

A lack of charging is still a concern – 23% of respondents said they were unconvinced by the number of charging facilities in their locality and/or on their travel routes. But this is a big improvement on 2023, when 37% cited a lack of charging stations as a key deterrent from making an EV purchase.

The other joint-second most noted deterrent around EVs was expensive battery replacement – marking the first time this has emerged as a leading issue for respondents. Maria Bengtsson, head of mobility at EY UK, said offering solutions such as competitive Battery-as-a-Service (BaaS) options could help boost adoption.

However, the research reinforced evidence that most drivers making the switch to electric would not go back; 88% of current EV owners in the market for a vehicle say they would likely buy another EV, similar to last year’s figure of 90%.

Finally, the research underscored that dealerships remain crucial to UK the buying experience for private drivers. More than half (55%) of respondents said they would prefer to purchase a new car from a dealership/showroom with a slightly lower number (49%) for used cars. A third (33%) of UK respondents said their preferred vehicle purchase method was online, while 14% say they would evaluate all options, highlighting the ongoing need for both physical and digital retail experiences.

EY’s Mobility Consumer Index surveys 19,000 respondents across 28 of the world’s top auto markets.