Friday 14 October 2022

‘Energy crisis puts EV revolution in doubt’

‘Energy crisis puts EV revolution in doubt’

Sky-high energy bills mean although people want to make the switch to an electric vehicle (EV), they can’t afford to.

That’s according to research by the RAC, which has found that 14% of people now want their next car to be an EV, which is a huge increase from just 3% in 2018, with 29% looking to get a hybrid as their next vehicle.

However, the number of drivers unsure of when they’ll be able to afford to go electric has jumped up to 42% from 36% - and the number who see themselves getting behind the wheel within five years has plummeted to just 15%.

The cost-of-living crisis and energy bills are the key contributory factors to this, slamming down the brakes on the electric revolution the government is hoping for.

Sales of new petrol and diesel cars will be banned from 2030 – but the current financial market makes the adoption rate required to meet emission goals untenable.

Simon Williams from the RAC said: “The squeeze on household finances brought about by the cost-of-living crisis mean people keen to get into an EV are likely to put off doing so. Rising interest rates will also inevitably have a detrimental effect on the number of people who choose to buy new cars on finance.”

Aside from the affordability issue, the study says that the semiconductor shortage is also a key reason for the drop in EV popularity or access.

Entirely battery powered EVs currently account for 17% of the market.

Written by

Bruna Pinhoni

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