UK electric car sales drop rate OBR warns

author: FutureCar Staff    

According to the Office for Budget Responsibility (OBR), the forecast for UK electric vehicle sales has been reduced due to the expectation of higher interest rates dampening demand. The OBR predicts that only 38% of new car sales in 2027 will be electric vehicles, down from the previous forecast of 68% in March.

The OBR attributes this decrease in sales to the higher upfront costs of electric models compared to fossil fuel-powered cars, which disincentivizes consumers from buying them. The OBR also mentions that the recent fall in the price of diesel and petrol reduces the cost advantage of electric vehicles.

In addition to cost concerns, the availability of public charging points is also cited as a barrier to consumer adoption of electric vehicles. Ian Plummer, the commercial director at Auto Trader, highlights the lack of public charging as a major obstacle. However, he believes that the government's plans to loosen planning restrictions, announced in the Autumn Statement, will help facilitate the broader roll-out of chargepoints and drive consumer adoption of electric cars.

Overall, the OBR expects the steep sales growth of electric vehicles in recent years to slow down due to these factors.

On a positive note, MG Motors experienced significant success in the UK market last year, with over £1 billion in sales. Their affordable electric cars attracted many drivers, contributing to their impressive sales figures.

FutureCar Staff