Skip advert
Advertisement

Electric car forecast slashed as buyers seek cheaper models

Report from Advanced Propulsion Centre suggests electric cars are too expensive for British and European consumers in the current economic climate

Production line

Car manufacturers in the UK and Europe are to produce fewer electric vehicles than expected as buyers look to cheaper models, experts have predicted.

The Advanced Propulsion Centre (APC) – a joint venture between the British Government and automotive industry that funds research into low-emission powertrains – has published its latest quarterly review of the car market.

In its report, the APC has predicted the UK will produce 1.1million cars and vans in 2025, of which 280,000 – little more than a quarter – will be fully electric. This is a downward revision, with the previous suggestion being that 360,000 out of a total 1million vehicles – more than a third – would be EVs.

Advertisement - Article continues below

This, the APC explained, is because an “uncertain economy” will drive customers towards cheaper new cars, with reduced EV production predicted as a result of that expectation. It acknowledged that overall production is expected to increase, however, with more hybrid and plug-in hybrid vehicles to be built.

A similar trend is predicted on the continent, with the APC forecasting 12million European EVs being built in 2025 – a downward revision of 1million from its previous estimate. Again, this is due to uncertain economic conditions, as well as potential supply chain issues.

The report makes mention of silicon carbide wafers – a type of semiconductor, first used in the automotive industry by Tesla, with excellent electrical and thermal properties. These types of semiconductor have the potential to improve EV efficiency and performance, and the APC says they will dominate the market by 2030. Europe will need a supply of 600,000 to 800,000 wafers by then, while the UK will need 80,000.

Now read more about the rising cost of rapid charging...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

Kia UK boss calls for clear ZEV roadmap, plus “modest” consumer incentives
Kia's UK boss, Paul Philpott standing next to a Kia EV6

Kia UK boss calls for clear ZEV roadmap, plus “modest” consumer incentives

Brand CEO says ZEV mandate is a threat, asking for clarity from the Labour government
News
6 Jan 2025
Car finance scandal: Supreme Court hearing could halve number of claimants
Finance contract, car key and calculator on desk

Car finance scandal: Supreme Court hearing could halve number of claimants

Scandal involving car finance commission could see motorists entitled to billions of pounds in payouts
News
19 Dec 2024
Dieselgate is back! Thousands of cars could be recalled as scandal returns
Emissions tests questioned

Dieselgate is back! Thousands of cars could be recalled as scandal returns

The DfT is currently investigating as many as 47 models across several brands that are suspected to use diesel defeat devices
News
14 Nov 2024
MoT failure rate is worse for vans than cars
MOT

MoT failure rate is worse for vans than cars

More than a third of light commercials failed their first MoT last year, new figures show
News
12 Nov 2024

Most Popular

Car Deal of the Day: handsome, sporty Mazda CX-5 dips under £250 per month
Mazda CX-5

Car Deal of the Day: handsome, sporty Mazda CX-5 dips under £250 per month

The Mazda CX-5 is fun to drive, features a driver-focused, premium interior and is our Deal of the Day for 9 February
News
9 Feb 2025
BMW X3 vs Lexus NX: which premium mid-size SUV takes top honours?
BMW X3 and Lexus NX - front tracking

BMW X3 vs Lexus NX: which premium mid-size SUV takes top honours?

BMW’s much-lauded new X3 is one of the best luxury compact SUVs on the market – but is it good enough to topple the cheaper hybrid-powered Lexus NX 35…
Car group tests
8 Feb 2025
New Kia EV2 baby electric car due in late-2025 with a low, low price
Kia EV2 - spyshot front

New Kia EV2 baby electric car due in late-2025 with a low, low price

Kia’s EV electric car range will grow again with the arrival of the EV2
News
10 Feb 2025

Find a car with the experts