From sales to sentiment: Understanding the EV Market in 2025
As the UK’s automotive landscape continues its shift toward electrification, our latest Insight Quarterly (IQ) report, provides a detailed analysis of where the EV market stands today and where it’s headed next.
This article highlights the key findings you need to know - from EV sales and the ongoing ZEV mandate consultations to consumer’s perceptions on EV adoption. Whether you're a manufacturer, dealer or fleet operator, understanding these EV trends and insights will be critical for staying competitive in the next phase of electrification.
EV market share and growth
The changing face of the automotive landscape
The UK automotive sector is seeing a fundamental shift when it comes to its fuel mix. While petrol remains dominant for now, the popular fuel type has experienced a 26.61% decline in market share since 2020. Diesel has seen an even steeper decline, plummeting by more than 76% to just 6% of the market today.
Total percentage of new car registrations that were EVs
In contrast, electric vehicles (EVs) and hybrids are surging ahead. Since 2020:
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EV registrations have soared by 560%, now reaching 979,000 vehicles on UK roads.
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Hybrids, including plug-in hybrid (PHEV) and hybrid electric vehicles (HEV), have increased by 151%, now accounting for 22% of the market.
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By 2028, EVs are projected to capture 36% of new car registrations, overtaking petrol as the leading fuel type.
This shift is being accelerated by ZEV mandate pressures and a wave of new entrants to the market offering more affordable options. Their presence means established brands must adapt and innovate to keep up with the rapidly evolving landscape.
Looking at European markets, we see varied EV trends. A heat map analysis reveals Spain leading the way, while France and Germany await clearer policies.
ZEV Mandate and government support: Paving the road to 2030
Government policies are instrumental in driving EV adoption, yet ongoing ZEV mandate consultations leave the industry in a state of uncertainty. While the mandate outlines ambitious zero-emission sales targets, businesses require clearer guidelines, financial backing and long-term policy stability to make these goals a reality.
Consumers too, expect more decisive action. Our latest Insight Quarterly (IQ) report, created in partnership with automotive expert Regit, found that 64% of consumers believe the government holds the greatest responsibility for accelerating EV adoption.
Therefore, it’s important for policymakers to liaise with both consumers and businesses to understand the true challenges of electrification. Only then will they be able to offer the commitments needed to drive EV adoption.
What do drivers really think about EV adoption?
EV misconceptions vs. reality
Our research highlights 79% of consumers have never driven an EV, meaning misconceptions around electric vehicles remain widespread. However, among those who have made the transition, 87% report their EV met or exceeded expectations - a strong indicator that first-hand experience leads to increased confidence.
While concerns about battery range discrepancies persist (42% of EV drivers noticed a difference between advertised and real-world performance), only 25% reported significant range issues, suggesting that range anxiety may be overstated.
Charging infrastructure: The EV adoption roadblock
Access to reliable charging remains one of the biggest concerns for UK drivers. A staggering 82% of EV owners rate the country’s charging infrastructure as ‘poor’.
In particular, 28% say they struggle to find public chargers leading to potential range anxiety, while 26% believe charging costs are too high. Nearly half (45%) pointed to a geographical disparity, with rural areas in the South East (26%), the Midlands (16.6%) and Scotland (15.3%), facing worse charging access challenges.
Incentives: The missing piece of the electrification puzzle
It’s not just a lack of charging points that are causing concern for consumers, however. The majority (86%) believe current government incentives to support EV adoption are falling short. Key policy improvements they’d like to see include:
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Financial incentives to make EVs more affordable (62%)
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Lower public charging costs (56%)
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Subsidies for home charging installation (52%)
The role of industry players: Who should lead the EV charge?
As already mentioned, nearly two in three (64%) consumers believe the government should take the lead in driving electrification. However, our survey found they also find industry players responsible for accelerating wider EV adoption:
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49% believe dealerships need to do more to educate buyers
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42% expect fuel companies to adapt and provide more charging options
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41% call on manufacturers to improve EV affordability and transparency
These findings indicate that policymakers should prioritise clearer financial incentives and improved charging infrastructure, while dealers, OEMs and fleet operators should focus on better education and transparency for consumers. Without this support from both the government and the industry, EV adoption will remain a challenge.
The used EV market comes of age
Despite the challenges that remain, the used EV market is shifting from uncertainty to stability. Early EV adopters experienced steep depreciation, but prices are now stabilising, highlighting an encouraging trend for both buyers and sellers.
Looking ahead, EVs are projected to make up 177% more of the used market by 2028, reflecting growing consumer interest and an expanding supply of second-hand models.
With demand shifting and supply increasing, the used EV market is steadily maturing, bringing more affordable options to the mainstream.
However, if buyers remain hesitant about used EVs, the market is likely to hit a stalling point. The reality being that concerns around battery degradation, uncertain resale values and the total cost of ownership continue to hold back mass adoption in the UK.
What’s next for electrification?
When it comes to where the industry needs to go from here, it’s clear the key to unlocking widespread EV adoption lies in addressing consumer and industry concerns to encourage the switch. Our research shows that once converted, driver concerns tend to lessen.
Policy holders hold responsibility for making it more realistic and appealing for drivers to make the switch, with financial incentives and investment. Without these targeted improvements, EV adoption risks coming to a halt, despite growing market momentum.
Dealers, OEMs and fleet operators on the other hand, share responsibility for educating drivers on how to make the switch and the benefits of doing so.
For the full industry outlook, explore the latest Insight Quarterly report.
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