Inflation and soaring bills putting brakes on switch to electric vehicles in UK

theguardian.com:

A record number of drivers want their next car to be electric, but the cost of living crisis is forcing many to delay making the switch to a more eco-friendly vehicle.

The RAC said a record 14% of drivers say their next car will be electric, up from 10% last year and just 3% in 2018. A further 29% said they intended to switch to a hybrid vehicle of some description, which combines petrol and electric power.

“It’s great to see an increasing proportion of drivers saying they will go electric next time they change their vehicles, with more than twice as many saying their next vehicles will be zero-emission than before the pandemic,” said the RAC’s Simon Williams.

However, soaring inflation, rising energy bills and the prospect of higher remortgage payments has led to increased economic uncertainty, putting the brakes on drivers switching to a new, cleaner vehicle.

The proportion of drivers who now do not know when they will go electric has increased from 36% to 42% year on year, while those expecting to do so in the next five years has dropped from 17% to 15%. The proportion who think they will be in an electric vehicle over a 10-year horizon has dropped from 25% to 21%.

“The squeeze on household finances brought about by the cost of living crisis mean people keen to get into an EV are likely to put off doing so,” said Williams. “Rising interest rates will also inevitably have a detrimental effect on the number of people who choose to buy new cars on finance.”

The survey found that the comparatively cheaper cost of running an electric car, compared with the cost of conventional petrol and diesel vehicles since the war in Ukraine sent prices at pumps soaring, has replaced environmental concerns as the top reason for making the