The UK’s transition to electric vehicles is gaining momentum as consumer interest rises, but low residual values for fleets and “mixed policy signals” risk slowing the switch. The
The UK’s transition to electric vehicles is gaining momentum as consumer interest rises, but low residual values for fleets and “mixed policy signals” risk slowing the switch.
The AA’s latest EV Readiness Index reveals a significant rise in favourability. The overall ‘Readiness Rating’ has risen to 53.8 in Q1 2026, which covers December, January and February. That’s up from 48.8 in Q4 2025, while Q3 2025 was at 47.5.
The AA said the increase reflects improving affordability in the used EV market and gradual progress on key consumer barriers.
But it warns that mixed messages from government policy and continued weakness in EV demand risk undermining the longer-term health of the market, particularly for fleets and manufacturers who underpin new EV sales.
The quarterly Index tracks eight indicators influencing drivers’ readiness to switch to electric vehicles, combining them into a single Readiness Rating measuring how practical and attractive EV ownership is for motorists today.
While conditions improved during the quarter, the Index highlights a market that is still in transition rather than at mass adoption, with affordability improvements driven largely by falling used EV prices rather than stronger consumer demand.
Used EV prices boost readiness score
The increase in the overall Readiness Rating was largely driven by falling prices in the used EV market, which have now dropped below the cost of equivalent petrol cars for the first time since the Index launched in September 2025. Used EVs were 10% cheaper than comparable internal combustion engine vehicles during the quarter.
The availability of lower-priced vehicles – particularly from ex-fleet supply entering the market – has created new opportunities for motorists considering switching to electric.
But the AA cautions that rapid depreciation presents a significant challenge for fleets and manufacturers, which rely on strong residual values to support new vehicle sales and leasing models.
Progress was also recorded in other areas tracked by the Index:
Running out of charge accounted for just 1.5% of callouts, a dramatic fall from historic levels and evidence that range anxiety is gradually receding.
Despite improving affordability, the Index highlights a persistent confidence gap among drivers considering used electric cars.
Polling of more than 12,000 AA members found that:
The motoring organisation also warned that consumer understanding of EV costs also remains limited. Only 14% of drivers believe EV running costs are lower than petrol or diesel, despite strong evidence that maintenance and home charging can be significantly cheaper.
The research suggests that better information and clearer reassurance on battery health and reliability will be critical to unlocking demand, particularly in the used market.
The AA said consistent policy signals will be essential to building consumer confidence, particularly following the recent debate around the proposed eVED mileage-based tax for EVs from 2028, which has created uncertainty for some drivers considering the switch.
Edmund King, AA president, elaborated: “Our AA UK EV Readiness Index shows that conditions for switching to electric cars are improving, with cheaper used EVs opening the door for more drivers. But the reality is that the transition remains fragile.
“Lower prices may be good news for motorists looking for a bargain, but if values fall too quickly it becomes unsustainable for fleets and manufacturers who buy most new electric cars in the first place.
“At the same time, mixed messages from government – including uncertainty around future taxes such as eVED – risk denting confidence just as the market is beginning to mature from the early adopters
“To keep momentum going we need clearer long-term policy signals and better information for drivers so they can make an informed choice when or whether to switch.
“Although spiralling petrol and diesel prices as a result of the situation in Iran are not included in our Q1 Index, we might see high fuel costs as another incentive to go electric in the future.”
