Affordability remains ‘biggest barrier’ to mass adoption, says Auto Trader

Affordability remains the biggest barrier to mass adoption of EVs in the UK, according to Auto Trader’s latest Road to 2035 Report.

Three-quarters of new EVs are being advertised with a discount, and average prices are falling for seven in 10 new electric models. However, affordability is still a concern even in the used electric market experienced 20 consecutive months of price drops.

Ian Plummer, commercial director at Auto Trader, said: “A growing trend towards electric consideration is fantastic news but for this to be a fair and equitable transition – and, crucially, for expanding interest to convert into sales – we need to be sure that when those considerers are ready to buy, there are electric cars available in a variety of budgets.

“New data on the misinformation surrounding EVs and the salience these have with consumers is worrying and it’s vital retailers educate themselves around these key myths so they can reassure consumers.

“We need to make more progress on affordability to encourage retail demand especially as exemptions from vehicle excise duty and the expensive car supplement for EVs end next year.

“Financial help from the government in the used electric market is vitally needed to ensure a fair and equitable transition.”

In June 2022, the electric share of advert views on Auto Trader peaked when it reached 36% as petrol prices rose. However, since then 14% of Auto Trader’s new car advert views have been EV-related.

Although Auto Trader’s consumer research in April suggests 34% of car buyers are considering EVs for their next car, up 26% from consumer research in August 2023, affordability is a big barrier to mass adoption.

There are just 10,000 EVs available for less than £15,000, compared with 350,000 ICE models in the same price bracket, available on Auto Trader’s marketplace.  There are only nine new EVs with starting prices under £30,000, compared to 76 ICE models.