Why Electric Vehicles are rising faster than you think
Electric Vehicles are on the rise, and the UK is at the forefront of this change. Currently, approximately 15% of newly sold vehicles are electric. By 2030, this is set to increase to 67% of all Electric Vehicles. By 2040, to 95%.
Using Faraday Insight research, we delve deeper to understand what is really driving this move towards Electric Vehicles.
Will there be a jump in Electric Vehicle sales?
Short answer: Not yet, but soon
It is a challenge to predict exactly when the demand spike for electric vehicles will occur.
Sales of Electric Vehicles in the UK are due to gradually accelerate by 2025. Between 2020 and 2040, electric vehicles will grow by 1.3% per year. The Faraday Institution expects 1.8 million vehicles to be sold by 2030 in the UK, which rises up to 3 million by 2040.
What will cause this surge in Electric Vehicles?
Short answer: Costs, customers, and the government
The first factor is costs, specifically costs of running an Electric Vehicle. This will be seen as electric vehicle manufacturers increase across the UK, hence can charge lower vehicles as they benefit from economies of scale. Nevertheless, the most significant factor driving reducing costs are battery costs.
Let's take a look at the cost of an Electric Vehicle lithium-ion battery.
The cost of a lithium battery makes up around 40% of a battery-powered electric vehicle's upfront cost. However, since 2010, the cost of the battery has been reduced by 85%.
The second factor is customers, specifically the change in their demand preferences when it comes to vehicles. This is because electric vehicle customers were typically early adopters, characterised by a higher socio-economic background than the majority of the population, but also highly interested in new innovative products. As electric vehicles (EVs) become more mainstream, customers who purchase EVs are increasingly from diversified economic backgrounds. Electric vehicles are now gaining a mass-market appeal.
The third factor is the government, specifically government policies that are encouraging the purchase of Electric Vehicles.
Let's take a look at the key UK government actions, directly and indirectly, boosting electric vehicle sales.
The UK government's 'Road to Zero' strategy
The UK government's 'Road to Zero' strategy directly incentivises the government to invest in increasing electric vehicle sales by:
- setting an ambition for 50-70% of new car sales to be ultra-low emissions by 2030
- setting an ambition for full electrification of cars and goods by 2040
This strategy has led to several different government actions including:
- Introducing the 'Automated and Electric Vehicle bill' which has brought legislation ensuring that public charge points follow standards on compatibility, payment processes and reliability
- The ‘Go Ultra Low’ campaign providing buyers with facts to make informed decisions
- Plug-in vehicle grants
- £400 million Charging Infrastructure Investment Fund aiming for the UK to have the world's best electric vehicle infrastructure network
The UK government has also set a target of non-zero emissions by 2050, in accordance with the Committee on Climate Change’s proposal.
This has entailed the UK government:
- targeting an earlier internal combustion engine sale end than planned
- all non-zero emission vehicles bought before 2035 should no longer be active on the roads after 2050
Which type of Electric Vehicles will increase the most?
Short answer: Battery-powered electric vehicles
Long answer: Currently, 70% of electric vehicles are hybrid electric vehicles, holding both an internal combustion engine (ICE) and an electric motor.
20% of electric vehicles are plug-in hybrid electric vehicles, chargeable from the electricity mains supply.
10% of electric vehicles are battery-powered electric vehicles, which do not use an ICE and can be plugged in for recharging.
Nevertheless, by 2024, it will be battery-powered electric vehicles that are forecasted to be the most popular type of electric vehicle sold.
Do you need approved and accredited Electric Vehicle Training?
Click below to find your relevant Electric Vehicle Training course.
✓ Getting DCPC Qualified
All individuals driving vehicles carrying goods, materials or passengers on commercial terms are required to hold a DCPC.
As an AWARE Series course, this course can act as 1 of your 5 7-hour modules as part of the mandatory 35-hour period training you are required to do every 5 years to keep your DCPC.
✓ Basic Electric Vehicle Training
This course helps you understand technologies available, how to power up and down systems safely.
✓ A Roadside & Recovery Professional
Emphasis placed on the safely isolating the vehicle before loading and/or recovering the vehicle. Great for Roadside & Recovery Training.
This course is excellent if you're:
✓ A Roadside & Recovery Professional
Gain the required knowledge to work safely around Electric/Hybrid Vehicles which may have or had damage to their high energy/electrical systems
✓ Learn with Network Training Partnership: The founder of AWARE Series
Network Training Partnership can deliver this course. Network Training Partnership (NTP) is setting the standards in the automotive and logistics industry. Their courses are both designed and delivered by industry experts, going above and beyond the industry expectations.