Could Cost Of Living Cost EVs?

Sat 18th Jun 2022

The current boom in electric vehicles sales could stall if the cost of living crisis in the UK continues says a leading motor financial services company.

Sales of battery electric cars have increased by 154 per cent over the last 12 months, compared to overall market growth of 23 per cent, and while many will have opted for electric over petrol due to the high cost of fuel, ironically it is those same pressures which may eventually halt the growth of EV.

Car buyers of today have the dilemma of knowing that it is cheaper to run an electric vehicle in the long-term, but the short-term cost of purchasing an EV is much higher than a standard combustion engine model.

According to Volkswagen Financial Services the cost-of-living squeeze which many are tackling due to rising energy bills and general inflation may mean that the prospect of purchasing a new car may be delayed, and even if a new car is an option, it may be a cheaper petrol or diesel alternative for now.

 “This first EV tracking report highlights the positive momentum that has, in recent years, seen increasing numbers of drivers switch from combustion engine vehicles to embrace greener, more sustainable transport,” said Mike Todd, CEO of Volkswagen Financial Services UK following the publication of the latest figures.

“The startling sales performance witnessed in 2021 is a recognition that for many an EV is the way to go. This has resulted in the UK tracking 60,000 vehicles ahead of the necessary adoption curve timescale to meet the Climate Change Committee’s target of 55% of all light duty vehicles being battery powered in ten years’ time. This is a vital component of the nation’s net zero ambition.”