UK ‘eReadiness’ stalls as government EV incentives dwindle, PwC finds
UK progress on switching to EVs is falling behind European counterparts due to a lack of government purchasing incentives, according to PwC.
The UK dropped from 4th to 11th out of 13 European countries in its ability to facilitate a full move to EVs, scoring just 2.4 out of a possible 5.0 in PwC’s latest eReadiness survey.
And the UK came in 17th out of a total sample size of 26 countries in PwC’s wider global study.
The UK’s eReadiness relative to other European nations has weakened since 2023, where it came in joint fourth.
The research, carried out with over 17,000 respondents in 26 countries, measures how ‘eReady’ a country is for the move to electric vehicles, calculated from four criteria: government incentives, infrastructure, supply and demand.
The UK has lost ground in its overall eReadiness vs 2023 (-0.2 vs 2023) due to a decrease in government incentives (-1.0 since 2023) after the Plug-in Car Grant was scrapped in June 2022. Meanwhile, infrastructure and supply metrics remained the same (2.8 and 2.5 respectively). Demand for EVs was shown to be increasing slowly in the UK, with this metric increasing by 0.3 to 3.3.
While scores around government incentives have contributed to lower scores this year, the weakened position is also driven by new European entries in this year’s study – particularly Sweden and the Netherlands, which are seen as leaders in EV adoption and the eReadiness space. Spain, France and Italy have also seen increases in their eReadiness since 2023.
Antoinette K Meehan, director in PwC UK’s Automotive Practice, said: “The UK’s drop in its eReadiness signals the need for a reassessment of both consumer and government roles in driving mass EV adoption. While automotive brands and dealers have a significant role to play in strengthening their brand position and building trust, especially in the UK, effective collaboration between government, manufacturers and infrastructure providers is essential.
“Recognising that the experience of buying, owning and driving an electric vehicle is significantly different to that of combustion engine vehicles, means creating the right economic and environmental factors that will foster confident, mass-market ownership.”
UK ahead on EV ownership and satisfaction
The study showed that the UK had a slightly higher proportion of current EV owners compared to globally (10% of UK respondents identify as current owners vs 6% at a global level).
The UK was also ahead for the overall satisfaction level among current EV ownership, up 10% YoY, with approximately 96% expressing satisfaction with their EVs (vs 93% at a global level).
The main contributing factors included a better battery lifetime (57%), recharging time (50%) and driving range (41%). Amongst UK EV owners, 70% said they would not switch back to a combustion engine.
Those dissatisfied with EVs among the UK cohort cited higher-than-expected maintenance costs and concerns about range limitations.
The study also looked at the key reasons for switching to EVs. Amongst UK prospects who indicated an intention to buy an EV within the next five years, main considerations were fuel economy (61%), the convenience of recharging at home (44%), as well as the reduced environmental impact (28%) and driving range (39%).
Price (65%) was an important criteria when purchasing a new EV among UK prospects, alongside safety (50%) and battery range (44%). In terms of overall EV package, charging solution (54% vs 64% at global level) and duration of warranty (48% vs 52% at global level) were the most important criteria for UK prospects.
Barriers cited by would-be EV buyers included recharging time concerns (54%), uncertainty about battery lifetime (42%), and perceived higher upfront costs vs combustion engine vehicles (37%). Concerns around limited range decreased 7% compared with 2023’s findings, indicating a reduction in range anxiety amongst prospective owners.
Just over a quarter (26%) of UK respondents are yet to be won over by EVs. Key barriers cited by this demographic included a perceived long recharging time (50%), concerns about limited range (43%), and uncertainty about battery lifetime (39%).
Cara Haffey, PwC UK’s leader of industry for industrials and services, said: “Strategic collaboration between automotive manufacturers, government and infrastructure providers is needed more than ever for a seamless transition to electric vehicles. Educating and engaging consumers is also going to be very important.
“Automotive brands, dealers, and the Government must collaborate to highlight the long-term benefits of EVs and create engaging experiences to dispel misconceptions.”
PwC’s latest eReadiness survey is online here.