New analysis: Families’ £1,200 a year motoring saving at stake in Government EV policy

Ahead of news that the Government’s Zero Emission Vehicle (ZEV) Mandate is about to be published, new analysis from the Energy and Climate Intelligence Unit (ECIU) has found that a saving to motorists of £16.5bn is at stake.

The mandate will require an increasing proportion of the cars sold by manufacturers to be electric vehicles – this in turn will speed up the growth of the second-hand EV market with new cars typically sold on after three or four years. With more than 80% of vehicles sold in the UK being secondhand, this market is vital if millions of households are to access savings that come from EV ownership.

Second-hand EVs are now retailing at just slightly higher prices than their petrol and diesel equivalents. For example, a four year old electric Nissan Leaf can be bought for £12,999, compared to a petrol Nissan Juke for £11,050.

But given EVs are much cheaper to fuel and run, they bring the overall cost of driving to motorists down. The analysis found that a used EV can save its owner on average more than £1200 a year in total ownership costs, compared to an equivalent petrol car. The extra EVs made available on the second hand market through the introduction of a ZEV mandate will save UK drivers an extra £16.5bn in motoring costs by 2047. [1]

Commenting on the analysis, Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit, said: “If you’re one of vast majority of drivers who buys second-hand and is looking to buy in a few years’ time, without a strong ZEV mandate you simply might not be able to get your hands on a second-hand EV that would be cheaper to run and own. A slow-down on this stuff would push up the cost of living for hard working families who want a cheaper way to drive.

“After the chaos of the last few days with the PM’s policy U-turns, any further changes from Government would have simply further shaken investor confidence and push car makers to invest in places like the US that are incentivising investment.”

Previous ECIU research has found that £13.3bn of car exports could be in jeopardy if the UK doesn’t speed up its transition to manufacturing electric cars given that over half of the cars made in the UK are exported to markets that are phasing out the sale of petrol and diesel vehicles [2].

Polling from ECIU/Focaldata before the recent Government U-turn on the phase-out of new petrol and diesel cars showed more people backed the policy (46%) than opposed it (34%) [3].

The commitment to the ZEV mandate will also secure investment from the charging industry in new charging infrastructure – critical as more and more EVs arrive on our roads. The industry had earmarked £6bn to do this, but only if the ZEV mandate is put in place and they have a clear idea of what the demand for chargers is going to be in the years ahead [4].

ENDS

Notes to editors:

1. The extra £17bn in motoring costs by 2047, the year when the final extra EVs sold due to the ZEV Mandate would be expected to reach end of life.
2. https://eciu.net/media/press-releases/2023/failure-to-develop-electric-car-industry-puts-13bn-of-uk-exports-in-jeopardy
3. https://eciu.net/media/press-releases/2023/public-back-governments-petrol-and-diesel-car-phase-out
4. https://x.com/ChargeUK_/status/1686650734652059648?s=20

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net