The Future of Electric Vehicles

Electric vehicles (EVs) are growing in popularity around the world, following significant transformations in the automotive industry and stricter environmental regulations. EVs can most simply be defined as vehicles that are powered by electricity, instead of a more traditional combustion engine powered by gasoline. In the UK, the transition to EVs is an integral part of the government’s plans to achieve net zero, an electric car typically emits just one-third of the harmful greenhouse gases of a petrol car during its lifetime. Despite increasing demand for the vehicles, the market still faces some consumer scepticism and various barriers to adoption.

In 2023, a poll from leading UK car sales portal, Auto Trader, found the upfront cost of an EV to be the biggest barrier to adoption. At the time the poll was conducted, a new EV generally cost 40% more than an equivalent internal combustion engine vehicle. Furthermore, limited access to reliable charging points has been identified as another key barrier for prospective EV buyers, a recognised concern for those who plan to use their vehicle for long journeys. In April 2024, 60,000 EV charging points were recorded in the UK, a figure that is expected to rise to 300,000 by 2030 in line with expected market growth. In 2024 it was also recognised that a ‘concerted campaign of misinformation’ regarding EVs was damaging consumer confidence in embracing the transition.

The reality is that electric vehicles are the future. New models are continuously being introduced to the market, 785 electric car models were available in 2024, and it is predicted that 1,000 models will be available for consumers by 2026. In addition to bringing a host of environmental benefits, EVs also bring great advantages to those who use them. According to the Department for Transport, individuals can save up to £1,500 using an electric car if they mostly charge at home, since home charging is notably cheaper than using a public network. EVs also have fewer moving parts which makes them less likely to need maintenance and repairs. The most recent findings suggest that EV batteries only lose 1-2% of their capacity each year, however all vehicles come with an eight-year battery warranty in case of exceptions.

The global electric fleet had almost 58 million cars at the end of 2024, highlighting the enormity of the EV market. China remains the largest market for EVs in the world, accounting for 11 million sales in 2024 alone. So, what is driving the transition to a more sustainable automotive future?

The UK, similarly to many countries worldwide, has introduced numerous legislations that are shaping the future of the automotive industry and increasing presence of EVs on the market. For instance, the ZEV mandate is a policy that has been established by the UK government, aimed at augmenting the number of EVs on the road. In summary, the ZEV mandate dictates the percentage of cars sold by manufacturers that must be zero-emission vehicles, a figure that gradually increases each year. 2024 was the first year of the ZEV mandate rules in which the number was set at 22%, by 2028 this figure will be increased to 52%. The UK’s overall goal elicits that by 2035, 100% of new cars and vans will be zero-emission.

Additionally, to improve access to public charging points, the government introduced The Public Charge Point Regulations 2023 (PCP Regs) in November 2023. This focuses on enhancing consumer experience when using public charge points across the UK. The PCP Regs covers areas like being able to easily locate the right public charge points to fit their needs, facilitating smooth payment across public charging points, ensuring that consumers can compare prices across multiple networks and be confident that all public charge points will be in good working order. Home charging is much cheaper than using the public network to charge EVs as individuals can enjoy off-peak tariffs and lower VAT charges, VAT at home is 5% compared to 20% on the public network.

In previous years, EV owners have been exempt from paying road tax on their vehicle, however this recently changed. As of April 2025, electric car drivers are now required to pay road tax, for most EV drivers in 2025 this is set at £195 per 12 months. However, there is also a ‘luxury car tax’ fee that applies to EVs with a list price that exceeds £40,000, so if your car was first registered after April 2025 and has a price exceeding this amount, you can expect to add £425 a year to the standard VED cost. Road tax is calculated based on emissions levels, therefore those with internal combustion engine vehicles will pay more tax annually.

Electric vehicles are the future and their increasing presence in the market is inevitable. It is clear that the benefits EVs bring to the environment are immense and play a critical role in contributing towards a cleaner planet. Furthermore, they bring visible long-term cost savings to consumers and as more models continue to be introduced to the market, a wider range of affordable vehicles will become available. So, when are you going to embrace the change?