Blog Post

Electric Car ownership grew more than 50% in 2020, a growing opportunity for Energy Suppliers

Richard Simmonds • Mar 08, 2021

A new report published by the RAC has found that electric car ownership grew by more than 50% in 2020 with Electric vehicle sales now accounting for 13% of market share.

Increasing sales

Last month EV sales doubled their market share from the previous year from just 5.7% to 13%. Throughout 2020 the number of Evs sold numbered 86,000 bringing the overall total of privately owned Evs on the UK's roads to 213,000.

Whilst it’s clear that Evs are growing in popularity thanks to a strong push by the government for its NetZero goals and raising awareness of climate issues among the public, the numbers sold are tiny when looked at in the grand scheme of things.

There are 32 million vehicles on the UK’s roads the vast majority of which are petrol and diesel-fuelled. If climate targets are to be achieved then the car industry, government and energy sector are going to have to do something drastic to convince motorists to swap to Evs.

The government has already announced the ban on new petrol and diesel cars in 2030 but that act remains to be seen as to whether people will get rid of their ‘polluting’ cars in favour of Evs.

To also help ‘encourage’ an uptake in EV purchases the RAC has asked the government to consider scrapping VAT on new Evs.

The RAC data showed that the London borough of Barnet now has the greatest number of electric car owners, with 1,235, followed by Wiltshire on 1,075 and Cornwall on 899.

South Wales was found to be the area with the lowest take-up of electric cars, with Merthyr Tydfil only registering 21 vehicles and Blaenau Gwent 27 vehicles.

Also read: What do Energy Supply companies need to consider selling Electricity to EV owners?

The Impact of Covid-19

One factor that many media outlets fail to consider when it comes to EV purchases is the devastating impact of the Covid-19 lockdowns on millions of people’s finances.

Those able to buy Evs throughout the pandemic represented the wealthiest of society as the majority are too busy worrying about paying their energy bills rather than buying new cars.

Many drivers are still put off Evs as they consider them as more expensive and more difficult to fuel in public as the infrastructure to support them has still not been built or provided for in much of the country, the creation and installation of which will cost billions of pounds.

“It’s important that the environmental and financial benefits afforded by the switch to electric cars are shared by drivers right across the country. Our analysis shows the extent to which the south and east of England currently dominate when it comes to the numbers that are currently in private hands,” said Rod Dennis, RAC spokesman.

Also read: 5 Ways Energy Suppliers can help EV owners

Opportunity for Energy Suppliers

Energy suppliers are already getting involved in the EV sector with companies such as Octopus Energy making team-ups with NatWest Group to offer a dedicated EV charging bundle that will give customers to both organisations access to flexible EV tariffs and EV roaming network.

Other energy suppliers have begun to make similar deals and offers as they seek to get involved in the EV market and accelerate the adoption of Evs.

“Transport is responsible for a third of all carbon emissions in the UK, so decarbonising our roads is a huge step we need to take in the race to net zero. More partners coming on board to EJN makes it easier for petrol car drivers to consider EVs and simplifies the whole process for current EV drivers,” said Zoisa North-Bond, Director at Octopus Energy.

As adoption levels grow, the rollout of charging infrastructure needs to be ramped up too. Without accessible charging points across the country, many consumers will be hesitant to purchase EVs.

Also read: How can smaller energy suppliers be competitive?

Dyball Associates will keep you informed of the latest changes and our team of energy market consultants can guide you through the steps to enter the UK energy market. Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.