There is no doubt that Covid-19 has created a greener environment with a considerable decrease in carbon emissions within our towns and cities. This was particularly true during the peak of lockdown and is the result of a combination of factors such as the reduction of flights and manufacturing processes, but also significantly fewer petrol and diesel-fuelled vehicles on our roads.

Transport currently contributes a fifth of overall greenhouse gas emissions. As the UK Government’s deadline of hitting its net zero target by 2050 draws nearer, with the related ambition of eliminating the need for petrol and diesel cars by 2035, a surge in demand for electric vehicles (EVs) will be essential. By the end of 2019, only 0.75 per cent of vehicles on the road were ultra-low emission, so there is some way to go yet.

A key factor in the relatively slow uptake of electric vehicles has been a perceived lack of charging infrastructure. Yet the average daily mileage for a vehicle in the UK is just 21 miles, which is well within any plug-in vehicle (PIV) range so drivers can charge their cars at home themselves. A standard three-pin charge is okay once in a while, but it is not designed to sustain power for long periods of time. A specially fitted home-charging point ensures faster charging speeds and built-in safety measures.

Further, the public use EV charging infrastructure is rapidly expanding: Savills energy team is assisting investors, developers and landowners to establish a plethora of charging points alongside hotels, offices, petrol stations, retail parks, supermarkets and new residential developments.  

Cost is often cited as another perceived barrier to the take-up of EVs. However, although the average purchase price of an EV is slightly higher than an internal combustion engine (ICE) vehicle, the overall lifetime cost is in fact considerably lower with cheaper fuel, road tax and MOT costs all playing their part. In fact, the price per mile for an average ICE vehicle is around 12p while for an EV it is around 4p. And as the second-hand market widens consumers will be able to access even more affordable electric cars.

The most significant development in the EV revolution will be improved consumer confidence and changing behaviours: how we plan ahead for longer journeys to ensure there are charge points on the way. A growing number of people are doing this already.

Today’s electric vehicle owners may be seen as pioneers, yet the transition from ICE vehicles to PIVs is very much in motion. The largest cities in the UK have introduced low or zero emission zones. Edinburgh, Bristol, Nottingham and Oxford have set their net zero target for 2030. Many other local authorities are switching their fleets from internal combustion engine vehicles to PIVs.

The range of vehicles available on the market is growing year on year with car manufacturers increasingly swapping their internal combustion production lines to EV. The variety of electric vehicle options isn’t limited to cars: utility vehicles, such as quad bikes, as well as traditional work vans and a handful of heavy good vehicles have been introduced as well.

According to Shell Energy two thirds of people are considering an EV as their next vehicle. The sector is preparing for this evolution and there are many opportunities to participate and take advantage within what is already a rapidly growing marketplace.

Further information

Contact Silvia Manzoni

Contact Savills Energy