A study commissioned by AXA UK indicates that nearly two-thirds (63%) of UK motorists do not intend to purchase an electric vehicle (EV), with battery lifespan concerns cited as a key deterrent.
Among those who do not plan to buy an EV, 37% attribute their reluctance to worries about battery longevity.
The research also found that only 8% of respondents intend to purchase a second-hand EV. Cost remains a significant barrier, with 61% of those surveyed stating that EVs are too expensive, while 36% cite a lack of local charging infrastructure as a key reason for their decision.
Alongside the findings, AXA UK has released a report that advocates for the introduction of standardised battery health certificates across all EV makes and models to provide buyers with greater transparency regarding battery performance and lifespan.
AXA UK argues that such certification could help strengthen the second-hand EV market by establishing a reliable measure of vehicle value, similar to how mileage is used for internal combustion engine vehicles. This could also facilitate more accurate insurance valuations.
While AXA UK’s report forecasts a downward trend for EVs, data from 2023 and 2024 revealed that the sector has been rising steadily. In 2023, the UK registered approximately 455,200 electric vehicles, marking a 23% increase from the previous year.
Meanwhile, last year saw EV sales continuing to rise, with nearly 382,000 new electric cars sold, representing a 21.4% increase from 2023. This accounted for 19.6% of all new car sales, up from 16.5% in 2023.
That said, AXA UK‘s report notes that there are some challenges ahead for EV adoption that may put a hamper on the country’s sustainability push.
From April 1, new EVs priced above £40,000 will incur an annual expensive car tax of £425 for five years, in addition to a new road tax of £195 per year that will apply to all EVs. Given that most EVs exceed the £40,000 threshold, second-hand options could present a more viable alternative for those considering a switch to electric.
However, concerns over battery health and vehicle depreciation have contributed to limited demand in the used EV market.
The study also found that 64% of respondents feel there is insufficient public information on purchasing a second-hand EV. In the UK, new EVs come with manufacturer warranties covering eight years or 100,000 miles, but these are often not transferred to subsequent owners.
Currently, there is no standardised method for second-hand EV owners to assess battery health or long-term performance.
AXA UK said that battery health certification could help address consumer concerns and stimulate demand in the second-hand EV market. Without such measures, low uptake may persist.
The insurer has urged the government to issue guidelines for standardised battery health testing, emphasising that such policies could support the second-hand EV market while also enabling insurers to assess vehicle value more accurately.
Outside of addressing battery concerns, companies like The Green Insurer have also welcomed government plans to subsidise loans for drivers purchasing electric vehicles.
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