EV ownership stalling as cost of living crisis bites?

16 December 2022  

EV ownership growth fell for fourth consecutive quarter during the last few weeks of 2022, according to an analysis of Department of Transport (DoT) and DVLA electric vehicle registration figures data undertaken by LeaseLoco, with London seeing the slowest growth, even taking into account the ULEZ expansion coming in August 2023.

Battery electric vehicle (BEV) registrations nationwide rose by 9.8% between Q2 2022 and
Q3 2022, while between Q1 2022 Q2 2022 they increased by 11.6%, and between Q4 2021 and Q1 2022 they went up by 15.5%.Looking further back, EV registrations were up 18.8% between Q2 2021 and Q3 2021.

EV ownership in London went up by 53% between Q3 2021 and Q3 2022, increasing from 23,353 to 35,626 BEVs. Meanwhile, EV ownership increased in the South West by 59% over the same period. In the North West, EV ownership was up 75%. 11,454 EVs were registered in Q3 2021, increasing to 20,092 in Q2 2022. EV registrations over the past year are up 71% in Wales and 68% in Scotland.

Commenting on the figures, LeaseLoco CEO John Wilmot observed: “These latest figures from the DoT show the impact that the cost of living crisis is having on electric vehicle registrations. Although demand is there, and sales of electric cars are growing, the rate of growth has slowed noticeably as the higher cost of electricity means more car owners are likely making the decision to delay switching to electric.

He added: “The government has set itself ambitious “Road to Zero” targets and can’t afford a prolonged downward trend in the rate of EV uptake. The spanner in the works could be the end of the energy price guarantee in April 2023. This is hardly an incentive for car owners to switch to electric in the coming months, knowing that home charging costs could spiral.”