Demand for electric cars plummets as energy bills rise and petrol prices fall

CAR EXPERTS have revealed that demand for electric cars has plummeted as energy bills rise and petrol prices fall.

Research has shown that 22% of drivers plan to buy a car this year, despite the cost of living crisis causing many to tighten their purse strings.

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However, AA Cars revealed that the number of drivers looking to purchase an electric vehicle (EV) had fallen from a quarter of drivers 25% in 2022 to fewer than a fifth 18% in 2023 as electricity prices continue to rise.

Despite the drop-off in drivers looking to buy an EV this year, recent AA research found that most drivers are still committed to going electric, with three-quarters of drivers 73% planning to buy one in the future.

Official data from the SMMT show that 13% of all new cars sold were EVs in January 2023, down from an average of 17% during 2022.

And the limited availability of second-hand EVs meant they accounted for just 1% of used car sales last year. 

Meanwhile, data released by AA Cars reveals that in the last three months of 2022, EVs accounted for 4.8% of searches made on the AA’s used car platform, down from 11.2% over the same period in 2021.

One reason for drivers cooling interest in EVs could be the steady fall in fuel prices just as household electricity prices are set to rise sharply in April as Government support is wound down.

And the AA research found that eight in ten 82% of drivers planning to buy a car this year will be swapping their existing petrol or diesel vehicle for another petrol or diesel model.

And more than half, 55%, plan to buy a used petrol or diesel vehicle, while just over a quarter, 27%, will be looking for a brand new model.

Many of those looking to purchase a vehicle this year are looking at ways to limit spending and get the most for their money.

Nearly a third 31% of motorists say low running costs are one of the most important factors when choosing a vehicle, and 30% say they are looking for a car that will last them a long time.

Mark Oakley, director of AA Cars, said: “It is reassuring for the car industry that so many drivers intend to buy a car this year, though stretched household budgets often lead people to make different purchasing decisions. 

“AA Cars search data shows buyers are showing particular interest in smaller cars that are affordable to buy and cheap to run.

“This may also be behind the cooling appetite for EVs, as they typically cost more upfront than their petrol or diesel equivalents.

“With price inflation of the most popular used models levelling off, value is improving, and this is a good time to start looking for a second-hand car.”