What action is needed to stop the electric vehicle decline

Introduction

“Demand for EVs falls by 24pc amid high energy prices and rollback of subsidies” was the headline this week in The Telegraph as the huge VW Group announced a decline in its EV business. 

Having flat-lined at Christmas, EV sales in general have now gone into reverse throughout Europe. Reduced Government subsidies, uncertainty regarding supply chains, frustration with the lack of recharging infrastructure, perceptions about battery viability in the winter months, driving range restrictions, concerns about resale values, rising energy costs and consumer inertia have combined to halt the previous growth in EV market share. Newspapers and YouTube carry stories of disgruntled EV owners swapping back to petrol and even diesel vehicles because of poor access to infrastructure and costs. Even the UK Government has signalled its lukewarm interest, delaying the expected switch to EV-only sales from 2030 to 2035 (and counting).

Does this matter? After all, for many decades we have been content with petrol or diesel fuelled vehicles, and there are many proven models to choose between.

Should we be concerned?

Well, there is the planet to safeguard and there is our wellbeing to worry about. Rising temperatures, declining natural materials, polluted cities, poor health linked to industrialisation, landfill waste mountains, etc, etc. So, yes, it matters about declining interest in EVs, because our attitude towards transport will need to flex, if harm to the planet and to people’s wellbeing is to reduce.

The UN SDGs are challenging, as are the targets to reduce global warming and pollution. But the increasing flooding in many parts of the world, the rise in destructive forest fires and shrinking ice caps are only going to scale-up in frequency and intensity if we don’t alter our ways.

What will help? Many changes will contribute significantly, some of which include:

• Altering the practises of heavy industry, particularly in countries such as China, India, the USA, Russia, Japan, Brazil and the industrial powerhouses of Europe.
• Reducing freight miles, with more food and products sourced locally.
• Expanding the circular economy, re-using and re-purposing worn out and discarded components and materials.
• Altering food sources and choices, reducing the amount of meat produced in South America and shipped to the west.
• Modifying energy provision to greener solutions and improving energy efficiency/productivity to reduce consumption.
• Changing transport modes away from polluting and damaging petrol and diesel vehicles.

Any decline In EV sales is worrying

Key industrial countries show no desire to make changes to their factories, manufacturing practices or exporting. The global economy depends now on the transport of products across global supply chains, with local economies not equipped to cater for local needs. Veganism has grown, but many consumers enjoy their meat-based diets, supplied from the other side of the world by farms generating huge amounts of methane. There is some progress regarding the circular economy and some brands are genuinely pursuing this strategy, but overall it’s a slow-burn and will take decades to make a real difference to the UN SDGs and climate goals. There has been good progress, in parts of the world, away from fossil fuels to green energy generation. And there have been promising signs that the switch from petrol/diesel was underway.

We need the move from diesel and petrol to continue. Not to put more money in the hands of Tesla or new market leader BYD from China, but to help contribute to a reduction in CO₂ and global warming. To help restore the balance with our planet. There are many benefits from adopting EVs, so the fact that EVs have stalled - or worse - reversed, is a problem.

There's key decisions to make

Arguably we are at a crossroads. Do we drive on, change route or return home? Right now, not as many consumers are prepared to drive on, to adopt EVs and to modify their ownership and driving habits accordingly.

To achieve continued switching we need Government subsidies to make EVs affordable and accessible. EVs are 27% more expensive, but UK subsidies were scrapped in 2022. We need policy decisions that drive at pace the creation of a viable recharging network and infrastructure provision. We need continued investment and innovation in less harmful and more productive batteries, as well as planning their re-use in their after-life. We need more green energy generation. Crucially, we need to give consumers reasons to believe in this form of transport. And probably we need to enforce change through legislation.

But at the moment, we are not seeing much of this. Instead, we are witnessing continued damage to the environment and to our wellbeing, while politicians dally, and consumers face confusion rather than compelling competitive offerings.