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Opinion: Mixed messages stall progress

The cost-based reluctance from businesses is likely to be due, at least in part, to ongoing mixed messages from Government.

BEVs
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In April, the UK saw its two millionth battery electric vehicle (BEV) registered. The latest SMMT figures show that BEVs now account for 27.3% of all new cars registered while plug-in hybrids (PHEVs) and hybrids (HEVs) make up 13.8% and 12.9%, respectively. However, looking at vehicle sales in 2026 to date, the BEV figure drops to 23.9%, far lower than the ZEV Mandate target. On the current trajectory, the UK market will fall spectacularly short.

Barriers to rapid growth

The Europcar EV Barometer tracks sentiment towards BEVs, and the latest data makes for interesting reading.

While BEV costs are moving closer to ICE models and savings can be made on fuel and maintenance, concerns around the cost of purchase, maintenance and finance were a bigger issue for businesses in Q1 2026 than Q4 2025.

Despite the charging network expanding to more than 120,000 public chargers across the UK, infrastructure concerns are another key concern.

The cost-based reluctance from businesses is likely to be due, at least in part, to ongoing mixed messages from Government, and even the yo-yoing of decisions. Potential per-mile tax on BEVs, the increase in BiK, and changes to grants and other funding support – businesses planning ahead need certainty and clear direction before making long-term commitments.

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Of course, one clear advantage of BEVs is fuel savings. Interest in new and used BEVs have risen in the wake of rapid fuel price rises sparked by the Iran war. However, our own research suggests that only 30% believe higher fuel prices will accelerate their company’s transition.

Seeing BEVs clearly

It is encouraging to see that respondents to the EV Barometer seem more confident in their understanding around owning and driving an EV, with just 14.2% held back by lack of knowledge, down from 16.7% in Q4 2025.

First-hand experience is, of course, the best way to increase knowledge and understanding. And we are seeing clear evidence of how rental is playing its part in this respect.

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In Q1 2026, Europcar BEV rentals saw a 139% year-on-year increase, growth which we believe is contributing to increased confidence. Indeed, in the past few years since introducing BEVs to our rental fleet, we have found that lack of confidence among first-time BEV drivers disappears by the end of the rental period.

There’s no question that there are still challenges for businesses that are considering the switch. But the reality is that the landscape is much easier than it was. Chargers are much easier to find in times of low-battery need, the range of vehicle options is bigger than ever, and running and maintenance costs are lower than ICE equivalents, with purchase costs coming down steadily.

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Plus, there are solutions available that give businesses the ability to make the change in phased steps, without having to make a long-term commitment, such as short and long-term rental.

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What’s needed now is more clarity from Government so that businesses can plan for the future.

Tom Middleditch is head of B2B marketing and sustainability spokesperson at Europcar