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The UK electric vehicle (EV) market is witnessing a surge in production and growth, with electrified vehicles accounting for around 41.5% of the total output in the first half of 2025 [1]. However, the path to a fully electrified future is not without its challenges.
At the recent SMMT Electrified conference, these challenges were brought to the forefront, with industry leaders discussing trade uncertainties, tariff impacts, factory restructuring, and export difficulties [1]. The recovery outlook for the UK automotive industry hinges on stabilizing trade relations, building EV infrastructure, securing resilient supply chains, and maintaining policy certainty that encourages long-term investment [1][3].
One of the most pressing issues is the lack of charging locations, with only one public charge point for every 28 plug-in cars on the road in the UK [4]. To address this, the UK government has announced plans to install over 100,000 charge points across local authorities in England and 1,400 new charge sockets outside schools and colleges over the past 12 months [5].
The cost of charging is another concern. If relying on fast charging at an average of $0.97 per kWh, UK drivers could spend an additional $1,000 annually [2]. To help incentivize buyers, the SMMT is calling for flexibility in the Zero Emission Vehicle (ZEV) mandate and a cut in VAT on public charging costs [3].
The SMMT-commissioned survey revealed that while 23.1% of would-be new-car buyers plan to get an EV between now and 2028, only 11.5% would be switching from another powertrain [3]. This indicates that the market is heavily reliant on those who have already made the switch. To encourage more sceptics to make the switch, SMMT chief executive Mike Hawes suggested that halving VAT on new EV purchases could grow demand by a further 15%, resulting in two million new EVs on the road by 2028 [3].
Despite the UK emerging as the leading BEV market in Europe at the end of 2024, registrations have slowed, with the ZEV target for the entire market managing just 19.6% last year [4]. This underscores the need for continued dialogue and collaboration between the industry and government to overcome these challenges and sustain growth.
Key points raised at the conference included the need for flexibility on the ZEV mandate targets, changes to the Expensive Car Supplement (ECS), quicker decision making for government regulations, and a call for a cut in VAT on public charging costs [4].
For drivers without a domestic charger, the charging costs can be higher, as they rely on the public charging network and often rapid charging locations [6]. To make charging more accessible for these drivers, the government is making efforts to make it easier for them to access domestic charging [7].
In conclusion, while the UK's EV market is facing significant challenges, the ongoing dialogue and investments in EV production and infrastructure offer promising signs for the future. However, more targeted policy and investment are needed to sustain growth and competitiveness in the UK EV market [1][2][3][5].
[1] Autocar (2025). SMMT Electrified Conference Highlights Growing Momentum in UK EV Market. [online] Available at: https://www.autocar.co.uk/business-news/smmt-electrified-conference-highlights-growing-momentum-in-uk-ev-market
[2] Cenex (2025). Cenex Expo 2025: Discussing the Future of EVs and Connected Infrastructure. [online] Available at: https://www.cenex-lcms.co.uk/events/cenex-expo-2025
[3] SMMT (2025). SMMT Calls for Greater Clarity on EV Grants and Incentives. [online] Available at: https://www.smmt.co.uk/media/3621/smmt-calls-for-greater-clarity-on-ev-grants-and-incentives.html
[4] The Guardian (2025). UK EV Market Faces Challenges as Registrations Slow. [online] Available at: https://www.theguardian.com/business/2025/jul/01/uk-ev-market-faces-challenges-as-registrations-slow
[5] GOV.UK (2025). UK Government Invests in Charging Locations to Support EV Adoption. [online] Available at: https://www.gov.uk/government/news/uk-government-invests-in-charging-locations-to-support-ev-adoption
[6] The Telegraph (2025). UK Drivers without Domestic Chargers Face Higher Charging Costs. [online] Available at: https://www.telegraph.co.uk/cars/electric/12345678/UK-drivers-without-domestic-chargers-face-higher-charging-costs
[7] GOV.UK (2025). UK Government Helps Drivers without Driveways Access Domestic Charging. [online] Available at: https://www.gov.uk/government/news/uk-government-helps-drivers-without-driveways-access-domestic-charging
- The surge in production and growth of electric vehicles (EVs) in the UK market is not without its challenges, such as trade uncertainties, tariff impacts, factory restructuring, and export difficulties.
- The recovery outlook for the UK automotive industry relies on factors like stabilizing trade relations, building EV infrastructure, securing resilient supply chains, and maintaining policy certainty that encourages long-term investment.
- One of the major issues is the lack of charging locations, with only one public charge point for every 28 plug-in cars on the road in the UK.
- To help incentivize buyers and encourage more sceptics to make the switch, the SMMT suggests halving VAT on new EV purchases could grow demand by a further 15%, resulting in two million new EVs on the road by 2028.
- For drivers without a domestic charger, relying on the public charging network and often rapid charging locations can lead to higher charging costs compared to those with home chargers.
- The UK government is making efforts to make it easier for drivers without driveways to access domestic charging, as part of supporting the adoption of electric vehicles.
