UK poised for strong EV growth.

When it comes to the electric vehicle (EV) market in Europe, the United Kingdom may not always be the first country that comes to mind. Norway, Sweden, the Netherlands, and Germany often take the spotlight with their high EV penetration rates. However, recent data and underlying factors suggest that the UK's electric vehicle market outlook is stronger than continental Europe. 

LeasePlan's 2023 EV Readiness Index, a comprehensive assessment of countries' preparedness for the electric vehicle transition, ranks the UK third in Europe, trailing closely behind Norway and the Netherlands. This indicates that the UK is making significant strides towards creating an environment conducive to electric mobility. Moreover, monthly registrations of fully electric vehicles in the UK are outpacing Europe, accounting for over 16% of new car sales in March 2023 compared to 14% in continental Europe.

So, why is the UK poised for stronger growth in the electric vehicle market? Let's examine the key factors:

Market Size: The UK boasts the second largest market for new car sales in Europe, trailing only behind Germany. With approximately 1.61 million new car sales in 2022, the UK represents a significant market opportunity for electric vehicles.

Government Support and Regulations: Confidence in the UK's electric vehicle market has been bolstered by the government's commitment to upholding the 2030 ban on the sale of new petrol and diesel vehicles. This clear stance provides certainty, encouraging consumers and businesses to transition to electric vehicles. Additionally, the UK government has maintained low benefit-in-kind rates, making electric vehicles financially attractive for fleet operators and company car drivers.

In contrast, the European Union has set a 2035 deadline for the ban on internal combustion engine vehicles, with some countries, including Italy and Portugal, expressing resistance to the proposed timeline. Germany, notably, has recently secured permission to continue selling vehicles running on "carbon-neutral" synthetic fuels, which still emit tailpipe pollutants. Such disparities in regulations create an advantage for the UK's electric vehicle market.

Charging Infrastructure Expansion: The availability of a robust charging infrastructure network is crucial for widespread EV adoption. In this regard, the UK is making significant progress. While both the UK and the EU experienced a six-fold increase in public charging infrastructure from 2016 to 2022, the UK has been accelerating its efforts in 2023. In the first four months of the year alone, the UK installed over 5,300 public charge points, accounting for 60% of the total installed in 2022. At Osprey alone, we installed as many rapid charge points in Q1 2023 as we did throughout the entirety of 2022. This rapid expansion of charging infrastructure enhances convenience and accessibility, further driving EV adoption in the UK.

While the UK may not currently lead the pack in terms of overall EV penetration in Europe, several factors suggest a brighter future for its electric vehicle market. The country's substantial market size, supportive government policies, and accelerated expansion of charging infrastructure all contribute to a favourable outlook for EV growth. As the UK continues to invest in electric mobility and foster an enabling environment for EV adoption, it is well-positioned to solidify its position as a leader in the European electric vehicle market.

Sources: National Automobile Manufacturers' Associations, acea.auto, Zap-Map, LeasePlan's 2023 EV Readiness Index. Image from LeasePlan's 2023 EV Readiness Index.