The UK’s target of phasing out petrol and diesel-powered cars and shifting to electric vehicles (EVs) has been put under pressure by news the Vauxhall van factory in Luton is set to close, putting more than 1,000 jobs at risk.
Stellantis, which owns Vauxhall, has blamed the decision on the UK’s “stringent” zero-emission vehicle mandate, sparking a row over the viability of Labour’s targets.
Ministers have said they want to stick to a deadline of 2030 for phasing out the sale of new petrol and diesel-powered cars. However, they have also admitted to being “profoundly concerned” about the policy’s impact and promised a review – with a possible view to easing the policy.
Here, Yahoo News UK takes a look at the wider issues affecting Britain’s auto industry and the public’s switch to EVs.
How many people are buying electric vehicles?
Although still in the minority, uptake of electric vehicles has been steadily increasing in the UK for several years.
In October alone, carmakers in Britain sold 29,800 electric cars – 25% more than the same month last year, despite an overall fall in the number of completed sales.
And, in a sign of their increasing popularity, the market for second hand EVs has also been growing, with the sector enjoying a bumper year in 2024 as Q2 sales soared by more than 50%.
However, EVs remain a tiny fraction of the overall secondhand market in the UK, accounting for just 2.4% of sales over the period.
This year also saw the overall number of vehicles sold in Britain pass the one million mark after six months for the first time since the COVID-19 pandemic, although even then industry figures warned demand for EVs was beginning to plateau.
Which are the most popular vehicles?
Perhaps unsurprisingly, Elon Musk’s Tesla tops the charts among British EV sales.
The social media magnate’s Model T was sold 35,899 times in 2023, making it the most popular EV.
Combined with the Model 3’s 13,536 sales, Tesla comfortably more than doubled the sales figures of its nearest competitor in Britain, MG, whose MG4 sold 21,715 units last year.
However, as popular as the Model T was, it was only the fifth most sold model in the UK in 2023, outperformed by the Kia Sportage, Vauxhall Corsa, Nissan Qashqai and Ford Puma, which ended the year with sales of almost 50,000.
How much do they cost to run?
While the upfront costs of an EV can be higher than a conventional petrol or diesel-powered car, especially in the current absence of a suitably developed second-hand market, the longer-term savings can be significant, according to the RAC.
While a home charger might set you back more than £1,000, it can offer a cheap way to top up the charge, especially if your energy provider offers a dual rate tariff, meaning prices for overnight charging can be slashed compared to other times of day.
Public charging points are usually more expensive and can vary significantly depending on their speed and capacity, but can also be found for free in some places.
EVs also do not currently have to pay an annual Vehicle Excise Duty (VED) or ‘road tax’, potentially offering significant savings. Though this is set to change from next April.
Fewer moving parts in an EV can also mean some maintenance savings, but their extra weight can also mean tyres and suspension can wear out quicker.
“People don’t know enough about them, but the actual sales of used EVs are up,” said journalist, campaigner and former Top Gear host Quentin Wilson. “It’s an education thing – if you understand they need so little maintenance and cost less to run [it’s a much better deal].
“The total cost of ownership is amazingly cheap, but people don’t know about the advantages.”
However, Brian Gregory, policy director at the Alliance of British Drivers (ABD), claimed EV drivers could also face most costs replacing their vehicles due to a shorter working lifespan.
“Once the battery is knackered, the car is just scrap value,” he said, “and the batteries only last about seven years.
“And no one has thought about what we’re going to do with those batteries.”
What are the current electric vehicle targets?
Under the zero-emission vehicles (Zev) mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, with the threshold rising each year.
Under the current rules, the mandate will reach 80% by 2030, but the Government has said it wants to to bring the ban on the sale of new petrol and diesel cars and vans forward, from 2035 to 2030.
However, ministers have also promised to tread carefully after warnings it could have a “devastating” impact on the automotive industry.
According to the Society of Motor Manufacturers and Traders (SMMT), which represents car makers, the UK’s car market has failed to keep up with the government’s targets and claimed “the need to fulfil ever-rising sales quotas” could cost manufacturers £6 billion this year, potentially threatening more jobs, as in Luton.
Business Secretary Jonathan Reynolds blamed “14 years of failure” by the previous Conservative government for failing to suitable prepare Britain’s car makers for the EV switch.
Others, however, are sceptical about the claims.
“There’s a lot of pressure from the SMMT and the car industry to soften these targets, but the big problem is the industry has done very little to meet them and the government has done very little to educate the public about EVs,” said Quentin Wilson.
“What we often hear in the media is very different to reality, which is one of the reasons demand is [comparatively] low, but it’s also a global issue because big ticket purchases like cars are struggling everywhere.”
Why aren’t people buying enough EVs?
Campaigners have pointed to several factors potentially holding back the sale of EVs.
Concerns about range have often been cited, along with a perceived lack of charging points.
But many EVs now have ranges of up to 300 miles on a single charge – plenty for the driving habits of many Britons – with figures suggesting drivers now also have more than one million charging points to choose from.
“People worry about the range and the charging infrastructure, but broadly it’s ok – we need more, but there’s enough,” said Quentin Wilson, who has also said the government needs to do more to combat misconceptions about EVs.
“I do a lot of trips and I never have problem charging.”
However, he also admitted “small levers” could be deployed by local authorities to improve confidence and awareness of charging infrastructure, such as more and better signposts directing drivers to charging stations.
He also said while studies have suggested up to 30% of the population might be unable to charge an EV from their own property, this means more than twice that number could top up their battery from home.
Others, such as Brian Gregory, of the ABD, have pointed to the costs associated with buying an EV.
However, the real answer may be simply that fewer people are buying cars across the board.
UK vehicle sales peaked in 2016 and have still yet to recover from to their pre-pandemic levels recorded in 2019.