Electric cars still too expensive for many drivers, industry warns
Car changing is a big deal
Rising battery and charging costs are keeping electric cars out of reach for many, industry experts warn.
Electric cars are still too expensive for many drivers, according to new analysis from the Society of Motor Manufacturers and Traders (SMMT), which warns that the shift to EVs is proving harder for consumers than originally expected.
The report finds that key assumptions about falling EV prices haven’t come about. Battery costs remain more than 30% higher than predicted, while energy prices have also risen sharply in recent years, making electric cars more expensive to produce and buy.
As a result, the point at which electric cars cost the same as petrol or diesel vehicles has not yet arrived – something many drivers were told would happen by the middle of the decade. That said, Vauxhall has achieved price parity between its electric and hybrid vehicles, most notably with the new Frontera Electric, which starts at £23,495, matching its petrol counterpart’s price.
Remember, you can buy a brand new or used electric car right here on Carwow. We’re here to help you through every step of your car-changing journey.
There’s still an imbalance
Although electric cars are becoming more common on UK roads, they still make up less than a quarter of new car sales. In 2025, electric vehicles accounted for 23.4% of new registrations, falling short of the 28% Zero Emissions Vehicle Mandate target set by the government, the SMMT analysis found.
Car manufacturers also say they have been cutting prices heavily to make EVs more attractive to buyers. The industry estimates more than £10bn has been spent on discounts over the past two years to encourage drivers to switch.
However, manufacturers warn this level of price support cannot continue indefinitely.
EV charging costs also a worry
Running costs are also becoming a growing concern for some drivers. In some parts of the UK, the cost of using public charging points has increased by more than 140% over the past five years, particularly at rapid chargers used for long journeys.
Charging access can also be an issue. While the UK’s charging network is expanding, some motorway service areas still don’t have the number of ultra-rapid chargers originally planned, according to the latest government data.
The SMMT say these factors are slowing the pace at which drivers are switching to electric cars, even as government targets for EV sales become much tougher from 2027, rising up to 38%.
Mike Hawes, SMMT chief executive, said: “The UK’s EV transition pathway was conceived with the best of intentions – but the assumptions behind it have proved over-ambitious. A landscape which once looked solid has turned out to be quicksand.
“Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it. We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.”
What you should know before buying an electric car
Electric cars can suit many households, but think carefully about how you’ll use one before buying or leasing. Here are five things to keep in mind:
- Check where you will charge: Home charging is usually the cheapest option. If you rely mainly on public rapid chargers, you’ll face significantly higher costs.
- Compare total cost of ownership: While EVs can be more expensive upfront, they often have lower maintenance costs and can be cheaper to run if charged at home on off-peak electricity tariffs.
- Look at real-world range needs: YouGov data shows that around 69% of drivers cover less than 20 miles a day, meaning many EVs offer more than enough range for daily use.
- Shop around for incentives and discounts: The UK government’s Electric Car Grant can reduce the upfront cost of eligible EVs by up to £3,750. Many manufacturers also continue to offer additional discounts and finance deals.
- Consider whether an EV suits your driving pattern: Drivers who regularly make long journeys or lack reliable charging access may find hybrid or efficient petrol models remain more practical in the short term.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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