Accessible, affordable and popular: What’s driving new EV demand
Almost 1-in-4 new cars registered in the UK is now electric¹, a clear sign that the transition to electric is underway. In our second instalment of our Road to 2030 Report series, we take a closer look at the demand for new EVs across the UK, exploring;
What’s driving growth in the new car market
Is EV growth accelerating quickly enough
If you missed our first instalment of this series ‘The EV market is growing.. But who’s still at risk of being left behind?’ where we explored EV performance in 2025 and changing customer demographics you can read it here.
¹ SMMT, 2025
Customer interest and demand continues to grow in the new EV market. Autotrader data shows that EV’s share of adverts grew 5 percentage points in 2025, now averaging 22%. Importantly, it’s not just visibility that’s risen, the share of enquiries sent to retailers about new EVs grew to 21% in 2025. This highlights that consumers are actively interested in new EVs.
This growth is partially down to the efforts the industry has made to address cost barriers for new EVs by expanding product ranged, introducing cheaper vehicle segments and the introduction of new tech advancements.
If we dive deeper we can see what’s driving the growth in demand.
It’s choice!
²Autotrader Internal Data Jan 2026 - Dec 2025
In the market there is now increased choice in brand, spec, and affordability. In 2025 we saw the affordable models stole the show. The best-performing EVs on Autotrader were often the most affordable options². This shows that price is a big factor for consumers when choosing an EV.
Over the past year, more buyers have been interested in EV that are priced competitively or close to the cost of a petrol or diesel car². When the price is right, more people feel confident making the switch to electric.
But is this enough?
²Autotrader Internal Data Jan 2026 - Dec 2025
Whist the growth in the new EV market is encouraging, it’s just not fast enough. Even in the 3rd year of the ZEV Mandate, interest levels are still well below the spikes seen after fuel price surge in 2022. The transition to electric is underway, but the pace will need to increase if the market is to meet future goals and targets.
The trends from 2025 suggest that while innovation and technology remain important, affordability is the key factor driving EV adoption. Encouragingly, this may only be the beginning. As more manufacturers enter the UK EV market and additional lower-cost models launch, this should expand the range of accessible options available to consumers . While progress so far has been steady, the growing pipeline of new models means the next phase of the EV transition has the potential to accelerate significantly.
If 2025 showed anything, it’s that when the price and choice are right, consumer demand follows. The question now is whether the market can build on this momentum quickly enough to meet the ambitions set by the ZEV Mandate.
If you’d like to learn more, join us for our Road to 2030 Webinar: The used EV opportunity is accelerating, and discover the retention challenge facing franchise retailers, why used EVs are going mainstream, and what the industry needs to do to prepare for rising EV supply.
Or head over to our dedicated EV Hub to see the latest data, insights and guides dedicated to the new and used electric vehicle market.
¹ SMMT, 2025
²Autotrader Internal Data Jan 2026 - Dec 2025
