EV demand continues to surge despite consumer concerns

UK vehicle dealers are reporting growing demand for electric vehicles (EVs), with customer enquiries, purchases and finance interest all increasing over the past 12 months, according to new research from Close Brothers Motor Finance (CBMF).

Nearly nine in 10 dealers stocking EVs (86%) said they had experienced an increase in customer enquiries, while 84% reported higher EV sales volumes during the past year.

Interest in financing EV purchases is also rising, with 86% of dealers reporting increased demand for EV finance. Meanwhile, home charging has emerged as a particularly important part of the customer proposition, with 89% of dealerships seeing greater interest in home charging solutions.

Traditional finance products remain the most popular routes for customers financing an EV. Conditional Sale and Hire Purchase (HP) were each identified as the most popular product by 30% of dealerships, followed closely by Personal Contract Purchase (PCP) at 27%.

Despite the growth in demand, dealers continue to identify a number of barriers preventing wider EV adoption.

Charging infrastructure and uncertainty over future vehicle values were the most commonly cited concerns, each identified by 34% of dealers. Battery lifespan and insurance costs followed, with both highlighted by 31%.

Affordability and range also remain obstacles. Three in 10 dealers (30%) said the upfront cost of purchasing an EV continues to deter potential buyers, while the same proportion cited range anxiety. More than a quarter also reported that some consumers continue to prefer petrol or diesel vehicles.

However, CBMF suggested concerns around charging and range may not always reflect motorists’ typical driving patterns. Previous research from the company found that 42% of motorists drive 100 miles or fewer during a regular week, compared with the typical range of around 300 miles offered by many modern EV batteries.

The findings come as the motor finance and automotive sectors continue to consider how finance, charging infrastructure and residual values can support the UK’s transition towards electric vehicles.

John Cassidy, Managing Director at Close Brothers Motor Finance, said:

“EV demand remains high, and on the rise in the UK, with our latest research highlighting that consumers are showing interest at every stage of the buying process. This news will be met with encouragement by dealers and the government alike, and demonstrates that the broader net zero transition is being embraced by the public.

“Whilst the signs remain positive, dealers continue to raise important areas of friction that are halting further adoption. Whilst there are undoubtedly real barriers to overcome, including challenges with affordability and the variety of vehicles on offer to consumers, there is also a wider understanding gap the industry needs to close.

“Nowhere is this more relevant than EV charging where it can be easy to underestimate the power of modern batteries.”

Cassidy pointed to CBMF’s multi-year partnership with Pod, announced earlier this year, which aims to provide accessible home and forecourt charging solutions to its dealer network and customers.

He added: “Overall, the picture looks positive, and continued effective collaboration between the government, EV manufacturers, dealers and finance providers can go a long way to improve understanding and accessibility of EVs in the years to come.”