UK EV Market Expected to Rise to 26% of Total Car Sales by 2023

The UK’s electric vehicle (EV) market is projected to make up 26% of total car sales by 2023, according to EY’s EV Country Readiness Index. Although the UK is classed as the fifth-ranked country for its EV market, behind China, Norway, the US, and Sweden, it has slipped one place in terms of supply and policy compared to the previous year. However, the UK’s overall ranking remains unchanged due to the strong demand for EVs and the upcoming ban on the sale of new Internal Combustion Engine (ICE) vehicles set for 2030.

EY’s UK EV lead, Maria Bengtsson, highlighted the need for improvement in the UK market by citing China as the global leader in EV adoption. The Index projects UK sales of battery electric (BEV) and plug-in hybrid electric vehicles (PHEV) to increase to 26% of total car sales by 2023, a 2% increase compared to the previous year. However, this figure still lags behind leading nations such as Norway (81%), Sweden (53%), and the Netherlands (35%). Moreover, it is predicted that 71% of new vehicles launched in the UK between now and 2027 will be EVs.

In terms of EV production, China is expected to dominate globally, accounting for 55% of production, followed by the US (11%) and Germany (10%). Meanwhile, the UK is projected to contribute less than 1% to global EV production in the current year. However, the UK government has plans to increase domestic production, particularly focusing on battery manufacturing. The goal is to ramp up battery production capacity to 41GWh by 2027, a significant increase from the 2GWh capacity in 2022.

Factors contributing to the UK’s current EV market success include high fuel prices and cost penalties imposed on ICE vehicles. However, there is a prevailing need for cooperation between Original Equipment Manufacturers (OEMs) and the government to address the challenges and continue progressing towards an effective transition to EV adoption.

Sources: The Index, EY EV Country Readiness Index