Autotrader warns of EV “wealth divide”

Lower-income households risk being left behind in the UK’s transition to electric vehicles (EVs), which could result in a structural divide in who benefits from cheaper running costs and cleaner local air, according to research from Autotrader which identifies affordability and lack of awareness as the primary barriers to adoption. Its No Driver Left Behind 2026 Report found only 48% of households earning under £40,000 would consider an EV for their next car, compared with 84% among those earning above that threshold.

This was despite the report revealing that 70% of lower income households have a driveway, suggesting off-street parking is not the clear-cut indicator of electric consideration, or likelihood to buy, as previously thought.

Almost two fifths of lower-income households buy cars priced £5,000 or less, yet just 1% of used EVs fall in that bracket today, Autotrader said. Lower-income families are far less likely to know someone who drives an EV or to have driven one themselves, reinforcing perceptions of high cost and inconvenience.

Autotrader’s findings follow last November’s Budget which included proposals for a new pay-per-mile road tax, adding to EV running costs. Nearly half of drivers polled (47%) said they were less likely to go electric following the Budget, compared to one third (34%) unchanged in views.

Its report concludes that without targeted action now on affordability, improving charging fairness by cutting VAT on public charging points, and cutting red tape for those without public charging, millions of drivers will remain excluded from the transition.

Ian Plummer, Autotrader Chief Customer Officer, said: “We’re at a pivotal moment for the UK’s EV transition but there is still a lingering wealth divide.

“This new data also busts the myth that those who can charge at home will definitely switch – the driveway divide is no longer so clear cut. If lower income households can’t access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off.

“The path forward is clear: more choice at lower price points, greater transparency on battery health metrics, and practical charging solutions for people without driveways. Do that, and we unlock EVs for everyone – not just the few.”