The numbers make uncomfortable reading for anyone banking on rapid electric vehicle adoption. According to the latest EY Mobility Consumer Index, 41% of UK motorists intending to purchase a new car in the next 24 months now prefer petrol or diesel, up from 36% in 2024. Meanwhile, interest in battery electric vehicles dropped to just 19%, down from 23% last year. That represents more than double the proportion choosing combustion engines over electric.
The reversal is particularly striking given what happened earlier in 2024. Last year's survey showed ICE buying intent falling and enthusiasm for cleaner vehicles rising, with 59% of consumers looking toward alternative powertrains. That figure has now eased to just 50%, suggesting the momentum behind electric adoption has stalled considerably. Even hybrid interest dropped sharply, from 27% down to 19%.
What changed? The survey identified upfront purchase costs as the top deterrent, cited by 41% of respondents. Limited range came second at 36%, followed by concerns about expensive battery replacement at 30%. These aren't new issues, but they appear to be weighing more heavily on buyers' minds as the initial novelty of EVs fades and the practical realities become clearer.
The disconnect between consumer intent and actual sales figures tells a revealing story. EV registrations hit a record 381,970 units in 2024, representing 19.6% market share and marking a 21.4% increase from 2023. On the surface, electric adoption looks healthy. Dig deeper and a different picture emerges.
Only one in ten private buyers chose an EV in 2024. The growth came almost entirely from fleets and businesses, which registered around 64,000 more BEVs than the previous year, making up a quarter of fleet purchases. Fleet registrations surged 11.8% while private buyer registrations fell 8.7% to just 746,276 units, less than during the pandemic affected year of 2020. Among private buyers, petrol commanded 61% of demand, with hybrids taking 16%.
The fleet dominance stems from compelling tax incentives rather than consumer enthusiasm. Company car drivers benefit from remarkably low benefit in kind rates, currently just 2% for EVs compared to far higher percentages for combustion vehicles. Fleet operators pursuing corporate net zero targets have clear financial and environmental reasons to choose electric. Private buyers face none of these incentives and bear the full brunt of high purchase prices and depreciation concerns.
Manufacturers spent more than £4.5bn on discounting in 2024 to create demand and meet the Zero Emission Vehicle mandate requiring 22% of sales to be electric. Industry leaders describe this level of subsidization as unsustainable. The 2025 target jumps to 28%, requiring even more aggressive incentives to shift metal at a time when private buyers are actively moving away from EVs.
Physical dealerships have declined in popularity but still narrowly remain the top choice at 36%, down from 53% in 2024, while online purchasing rose to 35%. The digital shift may help address some concerns about the buying experience, but it won't solve the fundamental issues around cost and charging infrastructure that keep private buyers choosing combustion engines.
European brands grew significantly in popularity, with 88% of respondents including them in their top three preferences, up from 63% in 2024. US brand preference fell from 59% to 46%, while Chinese manufacturers saw a modest uptick from 4% to 7%. The brand preferences suggest buyers increasingly value European manufacturers' approach of maintaining diverse powertrains rather than rushing headlong into electric only strategies.
The EY survey captures a market in transition, but not the transition policymakers anticipated. Private buyers are voting with their wallets for combustion engines and hybrids while manufacturers pump billions into discounts to meet mandated EV targets through fleet sales. That gap between regulatory ambition and consumer reality shows no sign of closing anytime soon.
